> Revenue Shortfall: NNPC Flays Relentless Attacks on Major Crude Oil Arteries

The Group Managing Director of the Nigerian National Petroleum
Corporation, NNPC, Engr. Andrew Yakubu has decried the persistent attacks
on major pipeline arteries supplying crude oil to export terminals
stressing that the menace has impacted negatively on the nation’s economy.
Engr. Yakubu made this known during his submission to the Senate and House
of Representatives Joint Committee on the Medium Term Expenditure
Framework (MTEF) for the period of 2014 to 2016.
“The critical and most important point to note here is that when the
artery conveying crude oil to the terminals is hit, this reduces our
production volume by 150,000 barrels per day and for the period that the
line is down and that accounts for the drop in crude oil production. From
February to date we have witnessed so much breaches and each time we go
down about 150,000bpd goes down, Engr. Yakubu informed.
He said the Oil and Gas Sector is a key component of MTEF and any impact
on it will have a negative effect on revenue flow to the federation
account. He lamented that the continuous crude oil theft, pipeline
vandalism and shut-in have constrained the sector from meeting its revenue
projection.
“We have looked at the 2014 oil projection from a realistic point of view
and we would continue to recalibrate it with the National Assembly and
other relevant stakeholders to ensure that the petroleum sector continues
to play a key role in the national economy, Engr. Yakubu posited.
According to him, there is no doubt that the menace of crude oil theft and
pipeline vandalism have received the highest intervention from the
President, Dr. Goodluck Ebele Jonathan which resulted in the institution
of a Committee by the National Economic Council, NEC, comprising of some
Governors, NNPC, Department of Petroleum Resources, DPR, International Oil
Companies, IOCs, Security Agencies and other relevant bodies to work out
modalities to mitigate the menace.
Commenting on the daily crude oil production figure, the NNPC GMD averred
that the production figure has been very erratic as a result of the
several attacks on the arteries from February to date adding that the
daily crude oil production figure ranges between 2.2mpbd to 2.3mbpd.
He said that the NNPC actively participated with the Budget Office in
arriving at the MTEF adding that the Corporation will do everything
possible to ensure that MTEF is achieved in terms of accruals from Oil and
Gas projected input.
Corroborating the GMD, the Director General Budget Office, Dr. Bright
Okogu affirmed that the activities of crude oil theft and pipeline
vandalism coupled with the discovery of shale oil and gas was responsible
for the inability of the NNPC to realize the projected 2.5mbpd crude oil
production in 2013.
In his opening remarks, the Chairman of the National Assembly Joint
Committee on MTEF, Senator Ahmed Makarfi said the rationale behind the
interface with all revenue generating agencies was to x-ray the
workability of MTEF