222 terminal shutdowns in 10 months Results to N1.474trn Loss

222 terminal shutdowns in 10 months Results to N1.474trn Loss
The production of 50.788 million barrels of crude oil valued at N1.474tn was stalled between January and October last year due to community interferences and other challenges forcing oil terminals to shut down production 222 times within the period.
Nigeria’s crude oil earnings were depleted by about N1.474tn between January and October 2021 due to various concerns at terminals that prevented the production of 50.788 million barrels of oil during the 10-month period.
It was gathered that community interferences, industrial actions by oil workers, COVID-19 outbreak at some terminals, pipeline vandalism, among others, curtailed oil production in various terminals, leading to huge financial losses for Nigeria.
This came as stakeholders urged the Federal Government to push for the deployment of latest technologies in securing oil infrastructure, as well as try to avoid issues that would warrant industrial actions.
Industry data obtained from different reports of the Crude Oil Marketing Division of the Nigerian National Petroleum Company Limited in Abuja showed that in January, February and March, the volumes of oil lost due to production shut-ins were 3,678,000; 4,105,000 and 3,142,000 respectively.
The losses posted in the months of April, May, June and July were 4,578,700; 4,187,500; 6,035,000 and 7,193,520 respectively.
It continued in August, September and October, as crude oil production losses due to shut-ins were put at 6,680,620; 6,362,700 and 4,824,946 respectively.
A summation of the crude oil volumes that were shut-in between January and October 2021 indicated that the country lost about 50.788 million barrels of oil during the 10-month period.
The 2021 average monthly prices of a barrel of Brent, the crude against which Nigeria’s oil is priced, were obtained from Statistica, a global statistical firm.
Figures from the international firm indicated that the average prices of Brent in January, February, March and April 2021 were $54.77, $62.28, $65.41 and $64.81 respectively.
In May, June, July and August 2021, the average prices were $68.53, $73.16, $75.17 and $70.71 per barrel respectively.
For the months of September and October, the average monthly prices of Brent per barrel were put at $74.49 and $83.54 respectively.
At the official exchange rate of N411.95 to the dollar, the worth of the crude volumes lost by the country in January, February, March and April were N82.98bn, N105.32bn, N84.66bn and N122.24bn respectively.
For the months of May, June and July, the country’s oil earnings were depleted by N118.23bn, N181.88bn and N222.76bn respectively. More at: https://punchng.com/fg-loses-n1-474tn-to-222-terminal-shutdowns-in-10-months/