Oil theft and growing sabotage of pipelines in the Niger Delta are hampering the growth of Nigeria’s oil and gas exports, The Guardian newspaper reported, quoting the CEO of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe.
He said lower-than-expected crude production had affected gas production, primarily associated gas.
Nearly 800,000 barrels of oil have remained stuck in wells amid the current challenges.
According to the official, most major oil fields, terminals and facilities were facing start-up problems and an upsurge in attacks on oil facilities.
The 150,000 barrel per day (bpd) Nembe Creek mainline supplying one of Nigeria’s main export grades has come under repeated attack by militants, the newspaper said.
Komolafe said Nigeria has failed to benefit from the global crisis due to declining production as the country’s revenue resources and gas production are out of balance despite rising international oil prices and demand. .
He said the government was working with security agencies to address the concerns of oil-producing companies.
Recent NUPRC data showed crude oil production fell to 972,394 bpd in August, the lowest level since at least 1990, from 1.083 million bpd in July, the newspaper said.
Source: Reuters (edited by Seban Scaria)