NEITI Reports 7.68 Million Barrels of Nigerian Crude Oil Lost to Theft and Errors in 2023

A recent report from the Nigeria Extractive Industries Transparency Initiative (NEITI) revealed that 153.44 million barrels of crude oil were deferred in 2023.

The report highlighted that companies like SPDC (39.13 million barrels), TEPNG (6.07 million barrels), and TUPNI (3.5 million barrels) were the most affected.

NEITI defines deferment as a stoppage in production due to scheduled and unscheduled repairs, pipeline breaks, leaks, or poor equipment performance.

Additionally, the report indicated that 7.68 million barrels of crude oil were lost in 2023 due to theft and measurement errors, marking a significant 79 percent decrease from the 36.69 million barrels lost in 2022.

Nigeria continues to struggle with effectively utilizing its oil and gas potential due to ongoing management issues in the sector.

The government has expressed concerns about the expiration and corrosion of pipelines used for transporting crude oil.

Despite spending N61 billion on pipeline maintenance between 2022 and 2023—N45.8 billion in 2022 and N16.2 billion in 2023—issues persist.

Minister of State for Petroleum Resources, Heineken Lokpobiri, made these remarks at the Energy and Labour Summit 2024, organized by the Petroleum and Natural Gas Senior Staff Association of Nigeria in Abuja.

“Part of our problem is that pipelines that were traditionally transporting our crude were built in the 1960s and the 1970s and the lifespan is since over. We have identified that even when we can produce, evacuation is a big problem,” he noted.

He lamented the “paucity of funds” for building new pipelines, stating, “The reason why pipeline vandalism is very easy is that the pipelines have all expired and completely corroded. Anyone can just tap into them, causing a breach; however, there are better technologies available, though they are more expensive.”

“There are better pipelines that other countries are using, but they are not cheap. We also need to change our model.”

Meanwhile, experts have been advocating for greater accountability in the oil and gas sector to help Nigeria realize its full potential in this critical industry.