A Dataphyte review of the Nigeria Extractive Industries Transparency Initiative, (NEITI) Oil and Gas industry report has revealed that over 270 million of Nigeria’s commercial crude oil production was lost to theft and sabotage between 2016 and 2020.
According to the report, a total of 39.162 million barrels of crude oil was lost in the year 2020. This is an average of 107, 293 barrels per day loss.
With crude oil averaging $41.68 per barrel in 2020, it would mean the country lost at least $1.6 billion to crude oil theft and sabotage.
In 2020, Twenty-two companies suffered these losses with AITEO leading the pack with 2.8 million barrels lost, Belema Oil recorded a loss of 561,976 barrels while Waltersmt recorded the lowest loss with 442,084 barrels lost to theft and sabotage.
The recorded loss is a drop from the 2019 figure put at 42.25 million barrels, averaging 115,753 barrels daily loss. This would mean a loss of $2.7 billion with crude oil averaging $65.49 per barrel in 2019.
In 2018, Nigeria recorded a loss of 53.28 million barrels of crude oil, representing a daily average loss of 145,972 barrels per day. At an average crude oil price of $72.58 per barrel, it would mean that Nigeria lost $3.8 billion.
The losses recorded in 2017 was 36.46 million barrels of crude oil , meaning a daily average loss of 99,890 barrels. In 2017, crude oil averaged $54.32 dollars per barrel, by implication, Nigeria lost $1.9 billion to theft and sabotage.
The highest loss was recorded in 2016 with 101.6 million barrels of crude oil lost, this would mean every day in the year, the country lost 278, 356 barrels to theft and sabotage, and a potential revenue of $4.6 billion was lost. Crude oil averaged $46.07 in 2016.
In all, Nigeria lost 272 million barrels to theft and sabotage between 2016 and 2020 and by implication, potential revenue of $14.6 billion was lost.
It was noted that the losses occur mostly during the transportation of crude oil through pipelines which are open to sabotage and attacks.
A Dataphyte report earlier noted that such losses hinder revenue growth that could have accrued to the country and could boost its excess crude account.
Nigeria has never met its budgeted crude oil production output due to instances of thefts and sometimes failure to meet OPEC cuts.