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Ribadu: Nigeria loses 200,000bpd to theft – The Nation

Chairman of the National Task Force on Petroleum Revenue, Mallam Nuhu RibaduThe Chairman of the National Task Force on Petroleum Revenue, Mallam Nuhu Ribadu, yesterday said Nigeria is losing about 200,000 barrels of crude oil per day to theft.
He said a new standardised metering system would soon be put in place to determine how much crude is being produced and sold daily.
Ribadu broke the news in Abuja during a mid-term assessment of his committee’s work after a five-hour session with International Oil Companies (IOCs) and other stakeholders on how to install production metres to monitor the nation’s crude.
It has been difficult knowing how much crude was produced daily by 33 oil companies.
According to an Assistant Director of the Department of Petroleum Resources (DPR), Mr. A. O. Ohiani, 31 of the 33 companies have been provided production metres but only five are using the metres.
Ribadu said his committee would work with the IOCs and other stakeholders to ensure transparency in the oil industry.
Ribadu said: “Security is the reason we are not getting maximum result from this industry. Security is probably responsible for up to 30 per cent loss of revenue in the country in one way or the other.
“Right now, we are being told by so many of the players that we are losing close to about 200,000 barrels of crude oil a day. If you put that into Arithmetic, you will know how much we are losing daily.
“Not only that, we are also losing investments in the industry. This is an industry that relies solely on people continuously investing in it. If you don’t invest today, you are not going to get results tomorrow.
“Already, we have a lot coming out of this security issues. So many companies are coming in and others are cashing in on that. It is a loss to Nigeria.
“There is so much loss going on, in addition to the image, which is so very, very bad for Nigeria. Nigeria is the only country where crude oil is stolen. It is very sad. The theft of crude oil is a terrible thing in Nigeria; it is giving us a bad name and a bad image. We need to address that.
“Unless you have a metering system, whereby you are able to tell exactly what you are producing daily from the well, what is going through the pipelines to a flow station, what is going to the export terminal, you may not be very accurate with any figure. That is the problem we are facing.
“We want to find solutions to the metering problem. We have called them, they have come. We want to see if we can solve those issues the DPR has complained about. Others also complained against DPR. So, we are trying to see if we can build a kind of understanding and solve the problem.
“I think the meeting is very good so far. You can see what we did. We just called them to come and discuss on the issue of metering and all of them have turned up. They are very enthusiastic. They have shown interest and we believe that something good will come out of it…”
An Assistant Director with the DPR, Mr. A. O. Ohiani, said the agency has manpower problem.
He said: “For an industry with 40 players, we have about 1,080 people to regulate it. There is need for people to understand what operates in the industry.”
A member of the Ribadu panel, Mr. Gerald Ilukwe, said: “Oil and gas industry suffers from global trust deficit. It is more negative than positive
“There is a need for close collaboration between the stakeholders and the regulators; we have to come together a bit more often.”

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