Pipeline vandalism, others take toll on oil production

[Edoman]

Pipeline vandalism, others take toll on oil production
March 9, 2020
 
in Business, News, News Update

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Pipeline vandalism, deteriorating condition of the onshore and offshore facilities and other factors are taking their toll on oil production,  the Director, Centre for Energy Studies, University of Port Harcourt, Prof. Wunmi Iledare, has said.

In a telephone interview at the weekend, he said the country is unable to produce enough crude for export because of pipeline vandalism which has characterised activities in the Niger Delta region. He noted the absence of oil storage capacity and poor offshore/onshore facilities.

He said despite significant reduction in pipeline vandalism, it has not translated to increased oil production.

Iledare said: “The decline in crude oil production in Nigeria can be attributed to pipeline vandalism, dwindling capacity of onshore and offshore facilities, among other issues.

 

In recent times, the country has found it difficult to expand its onshore facilities, due to inbility  of the Federal Government to invest significantly in that area.”

The don said investment in offshore and onshore projects has reduced, adding that it has frustrated the government’s ambition of increasing oil output.

He advised the government to solve the  problems that are affecting oil production and exploration internally, stresing that the country cannot solve external problem like the outbreak of Coronavirus in China.

“While the outbreak of Coronovirus in China is affecting global crude oil production globally, Nigeria has its own peculiar problems, which must be tackled first by the government, if its wants to improve production,’ he said.

He urged the National Assembly to fast-track the passage of the Petroleum Industry Governance Bill (PIGB), adding that this would help the sector and the economy in particular.

He said if the PIGB is passed into law, the country would be better because oil revenue would increase and further impact positively on government’s earnings.