Five Reasons NNPC Lost $1.06 billion Oil Revenue In One Month

The Nigerian National Petroleum Company (NNPC) Limited lost $1.068 billion oil revenue in one month as the corporation struggles to curb crude oil loss, preventing the firm from remitting into the federal account.

NNPC’s loss was as a result of the 9.4 million barrels of crude oil lost due to force majeure, fire outbreak, industrial strike actions by protesting OML 42 workforce, and repairs that caused production shutdown at terminal locations.

Some of the affected oil terminals are Trans Ramos pipeline, through which Nigeria pumps crude into Forcados oil export terminal. Also, Trans-Niger Pipeline halted operation in June, affecting the 180,000 barrels a day that it channels.

Other terminal that resulted into the loss is the Jones Creek terminal, after the Tricon Ex failure, NNPC’s latest Federation Accounts Allocation Committee (FAAC) report disclosed.

The report further stated that, “Crude oil production at Bonny Terminal has dropped significantly to an average of about 3MBD since the 21st of March 2022 till date. The terminal operator has declared force majeure on all outstanding Bonny programs.”

Recall that the Group Chief Executive Officer (GCEO) of NNPC Limited had stated that crude oil theft causes $1.9 billion monthly loss, and to prevent this loss, a joint effort between the state governments, Federal Government, security agencies and the oil companies are needed.

Kyari said, “This has done extensive damage to the environment, and losing $1.9 billion every month is colossal, considering the nature of the global economy at the moment.” Adding that, “stopping this oil theft requires the concerted efforts of the federal, state governments, oil companies, and security agencies”.