To prevent the complete collapse of Nigeria’s economy, it has been advised that the new administration, headed by president-elect Bola Ahmed Tinubu, concentrate on improving oil and gas security.
At the recently concluded Nigeria International Energy Summit in Abuja, Dr. Osagie Okubor, Chairman of Shell Companies in Nigeria, revealed this information and bemoaned the significant impact vandalism has on the country’s ability to produce oil and gas. He claimed that using the current $83 per barrel rate would have resulted in a loss of N2.3 trillion in oil revenue for the nation and the amount translates to about 65, 700, 000 crude Brent loss to vandalism and oil theft in under one year.
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As a result of the harm that vandals had done to the pipelines in the Niger Delta region, the nation continued to produce petroleum and gas below capacity.
He used the joint venture TNP, run by SPDC, as an illustration. TNP is a sizable pipeline with the capacity to move around 180,000 barrels of crude per day to the Bonny export terminal.
Okunbor noted that when the company found over 460 unauthorised connections, the TNP was reopened for business after being closed for a year owing to oil theft.
The security of the oil and gas infrastructure must therefore be the first priority for the future administration, according to Okunbor. We have a serious issue if you don’t fix it.
