How Militancy Has Almost Grounded Oil Production to a Halt

How Militancy Has Almost Grounded Oil Production to a Halt

How Militancy Has Almost Grounded Oil Production to a Halt

The statement made recently by the Minister of State for Petroleum, Mr. Ibe Kachikwu that Nigeria has ratcheted up crude oil production to 2.1 million Per Barrel could just be an empty assurance, considering the fact that some adamant Niger-Delta militants had staged two vicious attacks against Forcadoes Terminals within 14 days and this has drastically affected oil production as 300,000 bpd has been cut off from the country’s production.

It is gathered that one of the NNPC pipelines that feeds the Forcadoes Terminals was blown up by the militants on Tuesday. The latest attack took place while the pipeline was undergoing reparation after a previous attack last week.

Due to the attack of last week, Trans Forcadoes pipeline which serves as the key crutch to the Forcadoes stream was forced to closed down; a situation that forced Nigeria’s oil production to decrease by 200,000 bpd. The latest attack further led to the decline of Nigeria’s oil production as production capacity was cut by 300,000 bpd.

It will be recalled that the minister promised recently during a press statement after having meeting with some stakeholders in the Niger-Delta region and the oil and gas sector that Nigeria oil production was back to track after incessant attacks by the militants.

In the interactive meeting which was graced by some stakeholders, including Edwin Clark, the minister claimed that Nigeria’s oil production level now stands at 2.2 million bpd.

According to him: “The reality is that as of today and this morning, we are at 2.1 million barrels production. That’s substantial. Part of the expectations by 2017 is to target zero shutdowns as a result of militancy.”

However, with the two colossal damage caused by the two attacks, the possibility of achieving 2.1 million bpd could just be a pipe-dream.

In a related development, NNPC has disclosed that the company has earned a whooping sum of N1 trillion as revenue from the sales of white petroleum between September 2015 and August 2016.

The sales were achieved through its downstream section, the pipelines and Products Marketing Company (PPMC) and the analyses are: petroleum (N909.01bn) which represents 90 per cent. Kerosene followed with N51.86bn and diesel with N51.61bn. NNPC recorded very high sales within this year due to the sharp increase of the price of petrol from N86.50 to N145 per liter.