Image: investorsking.com

According to the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, Nigeria lost over N3.8 trillion to shortfall in oil production due to militants’ attacks and oil theft last year in the Niger Delta.

Speaking at the Rainoil 20th anniversary lecture in Lagos on Wednesday, Kachikwu explained that the revenue lost to vandalism last year could fund 30 per cent of Nigeria’s 2017 budget.

Nigeria is said to have lost about 700,000 barrels daily throughout last year, for which at the oil price of $50 per barrel, the country would have lost $35 million (N10.6 billion) daily, amounting to N3.8 trillion.

Kachikwu added that the present administration has been able to restore peace in the Niger Delta.

The minister, who was represented by the Chief Operating Officer, Downstream, Nigerian National Petroleum Corporation, (NNPC), Henry Ikem-Obih, spoke on, “The Nigerian Oil and Gas Industry, Opportunities, Challenges and Prospects of the Downstream Sector.”

He said that products theft and vandalism have continued to destroy value and put NNPC at a disadvantaged competitive position, as a total of 2,620 vandalised points were recorded between January 2016 and January 2017.

Author: Yemi Olarinre