Rise in oil production crushes oil theft in Nigeria

Rise in oil production crushes oil theft in Nigeria
Rise in oil production crushes oil theft in Nigeria

Rising oil production crushes oil theft in Nigeria as oil revenues are expected to rise, following the resumption of Bonga FPSO production.

A November 17 statement from Shell Nigeria Exploration and Production Company Limited (SNEPCo), indicates that the 2022 maintenance (TAM) of the Bonga Floating Production Storage and Offloading (FPSO) vessel has been completed. SNPCo said:

  • “Commissioning and start-up activities are underway and will culminate in the ramp-up of oil and gas production in the coming days.”

The Monthly Oil Market Report (MOMR) from the Organization of the Petroleum Exporting Countries (OPEC) indicates that Nigeria’s crude oil production recorded more than one million barrels of oil production per day (1,014mb/ j) for October 2022, the first time since July 2022. Crude oil production in the country has recently been hampered following an extreme theft of crude oil.

In October 2022, Umar I. Ajiya, Chief Financial Officer (CFO) of the Nigerian National Petroleum Corporation (NNPC) Limited, said that Nigeria was losing $150 million in revenue every two days due to pipeline vandalism and the secondary production, hampering Nigeria’s chances of benefiting from the era of high oil prices.

Fight against oil theft: However, the federal government would later engage the services of the former Niger Delta activist, the Ekpemupolo government, also known as Tompolo, to expose all illegal exploration and production activities in the Niger Delta region. Niger, which has led to significant progress. Minister of State for Petroleum Resources, Timipre Sylva, previously said the government was involving host communities, armed forces and operating companies in the fight against crude oil theft.

The news continues after this announcement

According to SNEPCo’s statement, Bonga FPSO was to be shut down for 30 days, to carry out statutory inspections, recertification and other activities to restore the integrity of critical assets. However, operations were completed 22 days ahead of schedule.

The Bonga Floating Production, Storage and Offloading (FPSO) vessel, which began production in 2005, also has a capacity of 150 standard cubic feet (scf) of gas export per day.

The news continues after this announcement

  • As of 2020, Bonga FPSO had produced approximately 880 million barrels of oil.
  • The FPSO improved its production capacity from 85% in 2018 to 94% in 2019. SNEPCo’s production in 2019 increased from 158,000 to 164,000 barrels of oil equivalent per day (boe/d), and this was largely due to Bonga.
  • In 2020, SNEPCo contributed approximately 22% of Shell’s global deepwater oil production

For memory : The Bonga FPSO has a processing capacity of 225,000 barrels of oil equivalent per day (bips) and a storage capacity of 2 million barrels of oil. The facility was shut down on October 18, 2022 for rotational maintenance (TAM).

. The increase production oil crushes theft oil Nigeria

. Rise oil production crushes oil theft Nigeria

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