- According to NNPC, Nigeria has lost over 7000kpd of crude oil this year alone due to vandalism. The total revenue loss is up to about 7billion dollars which could have been used to achieve major infrastructural milestones.
NNPC Group Managing Director Maikanti Baru speaking at the 2016 Fiscal Liquidity Assessment Committee Retreat in Abuja put the total volume of crude oil thus lost to vandalism at 7000kpd.
He said the NNPC planned “to renegotiate terms of Production Sharing Contract with deep offshore operating companies because with the current agreement, only 17.7 per cent of total revenue comes to government.”
![]()
Follow Us on Social Media! Get Latest News and Activities!!!![]()
Like our Page on Facebook
Follow us on Twitter
Follow us on Instagram
“Over 7000kpd of crude oil has been lost due to vandalism this year. A bulk of the loss is from JV assets,” Baru said in his paper “Global Oil Prices, Militancy and Terrorism and its Impact on Government Revenue in Nigeria.” This implies that 60 per cent of oil production lost is NNPC-FGN equity. At an estimated price of 45 dollars per barrel, the total 2016 revenue loss to the Federation Account translates to about 7 billion dollars.He said that apart from security challenges in the region, politics, judiciary, oil prices and production cost continued to impact negatively on the oil industry. He said the money lost in this process to “could have used to achieve major infrastructural milestones.
“This loss is equivalent to a new 7,000mw power plant; new 350kpd refinery; over 30 per cent of National budget; and a new 1,700 kilometre pipeline.”To resolve this, Baru said the NNPC planned to increase security of oil and gas assets, improve its community social responsibility and the Amnesty programme.
He said the NNPC planned “to renegotiate terms of Production Sharing Contract with deep offshore operating companies because with the current agreement, only 17.7 per cent of total revenue comes to government.”
LIKE OUR FACEBOOK PAGE BELOW
👇👇👇👇👇👇👇👇👇👇👇👇
👇👇👇👇👇👇👇👇👇👇👇👇
ADVERTISE ON IDOTOB.COM
Is something happening in your area that you want us to Post 
Follow Us on Social Media! Get Latest News and Activities!!!
Follow us on Twitter
Follow us on Instagram
Post a Comment
You can also post your comment through the Facebook box up their.. Click on that Facebook beside 'Blogger' the box will appear
Disclaimer: Opinions expressed in comments are those of the comment writers alone and does not reflect or represent the views of Tobi Idowu.