Nigeria has lost about $7 billion or N2 trillion to militancy and pipeline vandalism since the beginning of the year says Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Maikanti Baru.
He said: “Over 7000kpd of crude oil has been lost due to vandalism this year. A bulk of the loss is from JV assets.
“This implies that 60 per cent of oil production lost is NNPC-FGN equity. At an estimated price of $45 per barrel, the total 2016 revenue loss to the Federation Account translates to about $7 billion.
“This loss is equivalent to a new 7,000mw power plant; new 350kpd refinery; over 30 per cent of national budget; and a new 1,700- kilometre pipeline,’’.
To resolve this, Baru said the NNPC planned to increase security of oil and gas assets, improve its community social responsibility and the amnesty programme.
He added that the NNPC planned “to renegotiate terms of Production Sharing Contracts with deep offshore operating companies because with the current agreement, only 17.7 per cent of total revenue comes to government”.