Group Chief Executive Officer of Oando Plc, Wale Tinubu, has said 20% of oil production is lost to oil theft, reflecting Nigerian government’s inability to prevent sabotage on oil pipelines, IgbereTV reports
Tinubu explained that the oil theft was making it impossible for the country to reach its previous 1.4 million barrels per day quota handed to it by the Organisation of the Petroleum Exporting Countries (OPEC).
This means production level would fall short of the new 1.8 million quota the country received from OPEC, considering the challenges remain amid increase in expected oil output.
Nigeria is struggling to produce 1.21 million barrels per day in contrast to its 1.4 million barrels, Tinubu said on Wednesday at the 2022 Nigerian Oil and Gas (NOG) conference and exhibition.
He said this would eat into the oil industry’s contribution to the gross domestic product (GDP), reducing the value of the latter.
IgbereTV had previously reported that the country lost $1 billion in the first quarter of 2022.
The Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, had stated one month ago that only 71 per cent of oil produced in Nigeria get to the crude oil export terminals