Power failure, covid-19, others stall N88.76bn oil production

Written by on August 10, 2021

Power failure, COVID-19 outbreak and production shut-in at various crude oil terminals prevented the production of 3.31 million barrels of oil valued at about N88.76bn in one month.

Updates on key setbacks that affected oil production in the month of March 2021, as posted by the Nigerian National Petroleum Corporation on its website on Monday, showed that power failure alone stalled the production of one million barrels of oil.

Further analysis of the report showed that a total of 500 vandalised pipeline points were recorded between March 2020 and March 2021.

On crude oil losses, figures from the oil firm indicated that the Bonga Terminal lost the highest volume of crude oil (one million barrels), followed by the Forcados Terminal (720,000 barrels).

The Abo, Egina and Bonny terminals also recorded crude oil losses, as they could not produce 400,000 barrels, 600,000 barrels and 590,000 barrels respectively.

Industry figures on the price of Brent, the crude against which Nigeria’s oil is priced, showed that the average cost of the commodity in March this year was $65.41 per barrel.

Therefore, for the 3,310,000 barrels of crude oil that was not produced during the review month, Nigeria lost about $216.51m (N88.768bn at the official N410/$ exchange rate).

Source: VANGUARD


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