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Nigeria lost $1.45 billion worth of crude oil in 2015 – NEITI

Nigeria lost 27.1 million barrels of crude oil produced in 2015 despite huge expenses on industry security, the Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed.

A total of  $1.25 billions were lost including the $25 million worth of crude that the Pipelines and Product Management Company (PPMC) reported lost.

Losses were also caused by pipeline attacks with bombs and by thiefs.

The information on the loss was  contained in the NEITI 2015 Oil and Gas Industry Audit which was reported on friday.

The report said: “The volume of crude oil declared lost to theft by 18 operators in 2015 was 27.1 million barrels. Though this amounted to only 3.5% of total oil production, the loss was valued at $1.4 billion. PPMC also declared loss of crude worth $25 million, bringing the total declared losses to $1.45 billion.

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To address the issue of losses, NEITI reiterated its call for effective and adequate metering infrastructure and enhanced security of our oil and gas assets.

The Executive secretary of NEITI, Waziri Adio,  said beyond providing a snapshot of what transpired in 2015, “this report reveals money to be recovered, leakages to be blocked, and urgent reforms to be undertaken… The most critical take-away is the need to expedite, expand and sustain reforms in this still critical sector of national life”.

According to NEITI, oil and gas revenues plunged from $54.5 billion in 2014 to $24.8 billion in 2015, while the country’s oil production fell from 798 million barrels in 2014 to 776 million barrels in 2015.

The total outstanding revenue from the sector as at 2015, it said, was $3.7 billion and N80 billion, “while losses incurred stood at $2.2 billion and N60 billion, and unreconciled revenues amounted to N317 billion”.

The report shows that Nigeria suffered a 54.6% decline in oil revenues but only a slight 2.7% fall in oil production.

“This was due to drastic reduction in the unit price of crude oil in the global market,” the report said.

The yearly average price of crude oil per barrel tumbled from $101.91 in 2014 to $52.16 in 2015.

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