NNPC’s Partnership With Private Security Outfit Yielding Results As Crude Oil Production Rises By 300,000BPD
The NNPC had on August 13 this year contracted Tantita Security Services for pipeline surveillance services.
Before the contract was awarded, the Group Chief Executive Officer of the Nigerian National Petroleum Company Ltd, Mele Kyari and the Minister of State Petroleum, Timipre Sylva had alerted that over 700,000 barrels of Nigerian oil were stolen on daily basis.
About 90 per cent of foreign exchange from exports in Nigeria comes from crude oil sales, which has been frustrated by oil thieves.
The ripple effect of this crude oil theft is huge pressure on foreign exchange reserves and dollar shortage which had led to naira decline.
The security contract had become imperative because Nigeria also depends on crude oil and gas proceeds to fund a large chunk of the federal government budget.
Report shows that Nigeria’s national oil production has recovered from an all-time low of 1.1 million barrels per day in August 2022 prior to signing the contracts to an average of over 1.47 million BPD in November.
This translates into an increase of over 300,000 BPD.
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Similarly, findings further revealed that oil production volume has continue to record significant improvement as more Wells
and associated surface facilities that were hitherto shut-down because of incessant theft and vandalism are being reopened.
Specifically, narrowing down on the Joint Venture assets, mainly onshore which were mostly affected by the security challenges, the NNPC had witnessed a slump in production from a monthly average of 800,00 BPD in January 2022 to about 500,000 BPD in August 2022.
But following the mobilization of the Production Sharing Contracts, the country has recorded JV oil average production increase of
about 190,000 BPD between August to November 2022.
A breakdown of the JV production increase showed that as of August this year, the average oil production volume was put at 502,759 barrels per day, which is the lowest this year.
According to the document, with the signing of the security contract on August 13, this year, the production volume rose to 521,834 BPD in September before increasing further to an average of 590,431 BPD and 668,147 BPD in October and November.
Findings further revealed that similar impact is being recorded on gas production since the signing of the agreement.
Specifically, before the agreement was reached, the outage of major trunklines had severely impacted gas production and evacuation, thereby depriving Gas Power Plants and Gas Based Industries feedstock for operations.
