Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.


Oil production drops by 127 000bpd

31 May 2013, 14:09

Abuja - Nigeria’s crude oil production has dropped by 127 000 barrels per day from about 2.3 million bpd following the declaration of force majeure on Usan crude by the oil major, Total Plc.

The force majeure,  Total said in a statement made available to Reuters, was expected to affect 127 000bpd of Usan crude expected to be exported in June.

 A force majeure exempts parties to a contract from their obligations due to circumstances beyond their control.

Total confirmed that production was completely halted, but said there was no further information on the outage, or how long it was likely to last at this stage.

The oil major declared that four cargoes of Usan, which represent around 127 000bpd due to be exported in June, would be shut in.

Usan is an offshore field, and so, is not subject to theft like Brass River or Bonny Light grades of crude oil.

The force majeure for Usan adds to those on Royal Dutch Shell’s Bonny Light and Eni’s Brass River.

Already, oil production in the country had on April 18, 2013, dropped by 150 000bpd when the Nigerian National Petroleum Corporation/Shell Petroleum Development Company Joint Venture declared a force majeure on Bonny Crude due to incessant crude oil theft.

The Acting Group General Manager, Public Affairs Division, NNPC, Tumini Green, who lamented the development, said there had been a significant drop in crude oil production for the first quarter of 2013.

She attributed the situation to incessant crude oil theft and vandalism along major pipelines in the Niger Delta.

As a result of this, she said the Federal Government lost about N191bn ($1.23bn) to oil theft and vandalism in the first quarter of the year.

Green said daily crude oil production fluctuated between 2.1 million and 2.3 million barrels per day during the first quarter of the year, compared with the projected estimate of 2.48mbpd.

“Expectedly, this fall between actual production and forecast in first quarter of 2013 has resulted in a drop in crude oil revenue of about $1.23bn (N191bn) that should have accrued to the Federation Account,” she said.

Speaking on the force majeure on Bonny Crude attributed to incessant crude oil theft, Green said, “Investigations showed that 53 break points were discovered along the 97-kilometre Nembe Creek Trunkline. Repair work is expected to last about six weeks.

“This will further reduce our April and May monthly average to about 2.2 million bpd and further decrease crude oil revenue by about $554m (equivalent to N83bn) that should have accrued to the Federation Account.”

The NNPC spokesperson, however, assured that the maintenance work would have minimal effect on gas supply to the domestic market.

Meanwhile, SPDC said it had since April 15, 2013 shut down the NCTL to remove crude oil theft connections and investigate suspected leaks.

 The Managing Director, SPDC and Country Chair, Shell Nigeria, Mr. Mutiu Sunmonu, said, “We’re concerned that the NCTL has been targeted by crude oil thieves repeatedly since we installed the new line in 2010 at a cost of $1.1bn.

- Reuters


Read News24’s Comments Policy

Comment on this story
Comments have been closed for this article.

Read more from our Users

Nigeria @ 56: Words to my green f...

A leader’s job is not to dictate, but rather to be respected, admired and be a trustee, of the land we love, with so much potential, a land which should be freer than free. Its still a long way to fufilling our destiny! Read more...

Submitted by
Isaac Asabor263
Recession: An opportunity for Nig...

The recession should be seen as an opportunity for the country’s promotion as long as we all collectively conduct ourselves in a patriotic manner, writes Isaac Asabor.  Read more...

Submitted by
Black and White

We want to imitate the whites in everything because we are ignorant of our inherent originality and content. We spend all our Naira to acquire his inventions because we so oblivious of our natural endowments that we allow him have it for free. Read more...

Submitted by
Nate Nat
Adamawa State University Mubi: A ...

ADSU integrity forum has accused the Sunday Joshua Wugira, a lawyer, of adopting unorthodox tactics by abusing his privilege by attacking the integrity of ADSU Vice Chancellor Dr. Moses Zira Zaruwa, writes a News24 reader. Read more...

Submitted by
Abdulsalam Jubril
My Country Nigeria (Part One)

Poetry by Abdulsalam Jubril.

Submitted by
Abdulsalam Jubril
Recession, dearth in leadership a...

Every leader has the opportunity to become great and making himself immortal in the lives and hearts of people for generations to come. Will Mr. President seize this opportunity?, questions Abdulsalam Jubril. Read more...