Naija247news.com reports that the NNPC Group Managing Director, Mr Andrew Yakubu, gave the figures at the ongoing Nigeria Oil and Gas (NOG) conference in Abuja.
Yakubu said that the incessant vandalism of crude oil export pipelines and domestic crude oil and petroleum product pipelines impacted negatively on the economy.
According to him, what Nigeria lost in 2013 is equivalent to the production of Equatorial Guinea and larger than the entire production of Ghana, Congo Brazzaville, Cameroun and Gabon.
Yakubu said that the shut-in of such a significant production had elicited the Federal Government’s attention to take some drastic actions to tackle the situation following the negative impact on government’s revenue.
“The initiatives include the setting aside of N15 billion for the purchase of security equipment to checkmate the scourge of oil theft in the Niger Delta approved by the National Economic Council (NEC).
“Utilisation of new technology and Radar Surveillance to boost maritime security and increase sea patrol by the Nigerian Navy.
“Inauguration of an Inter-Agency Maritime Operations Coordination Committee (IMOCC) to provide synergy among agencies operating in the industry to ensure safety and security in the Nigerian maritime industry
“Provision of air surveillance of Nigeria’s pipelines with modern aircraft manned by Nigerian pilots trained under the Petroleum Technology Development Fund (PTDF) programme.
“These initiatives are in themselves not sufficient to maintain our leading position in oil production in Africa,’’ he said.
Yakubu said that government’s commitment in evolving new strategies to checkmate pipeline vandalism stemmed from the need to improve small field economics, new acreage management system and new exploration paradigm shift.
“Nigeria’s crude oil production is dependent on key arteries – Trans Forcados, Trans Niger, Nembe Creek line and Temidaba-Brass Line.
“These lines connect to three export terminals – Forcados, Bonny and Brass.
“Presently our oil business environment is plagued with peculiar challenges in the Industry and whenever these lines are simultaneously compromised, production shut-in could be in excess of 300,000 bpd.
“Therefore it is imperative that we continue to secure these pipelines and also maintain the sanctity of regulation in our operations.
“This brings to mind, the call for a Midstream Regulator as proposed in the PIB, which will ensure appropriate cost recovery mechanisms for pipeline operators and result in optimum investment in midstream infrastructure nationwide.
“Additional capacity can be readily added and sustained with effective surveillance and security,” Yakubu said.