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Business - Economy Updated: April 13, 2024

FG links declining oil production on pipeline problems

By TIMOTHY TIMILEHIN ENIETAN-MATTHEWS
April 13, 2024
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The Nigerian government of Nigeria has linked the nation’s declining crude oil production on issues encountered on the Trans Niger Pipeline, coupled with maintenance activities carried out by some oil companies operating across the country.

According to reports, Nigeria lost its position as the number one producer in Africa after production figures fell for the third consecutive month.

The latest data from the Organisation of Petroleum Exporting Countries (OPEC) Monthly Oil Market Report (MOMR) released on Thursday had showed that Nigeria’s daily crude oil production dropped to 1.23 million barrels per day in March 2024 down from 1.32 million bpd in February and further from 1.42 million bpd recorded in January.

Reacting to this, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the drop in production was due to issues encountered on the Trans Niger Pipeline.

Lokpobiri disclosed this in a statement issued in Abuja by his Special Assistant on Media and Communications, Nneamaka Okafor on Friday.

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The statement read in part, “In response to recent concerns regarding a shortfall in oil production in Nigeria during the first quarter of 2024, the Minister of State for Petroleum Resource (Oil), Senator Heineken Lokpobiri, assures (Nigerians) that measures are being taken to address the situation to, not only restore production to previous levels but to also increase it.

“The minister clarifies that the reported production shortfall was primarily due to issues encountered on the Trans Niger Pipeline, coupled with maintenance activities carried out by some oil companies operating in Nigeria.

“The minister is also pleased to announce that the issues have been adequately addressed, and production is expected to return to its previous levels in the coming days.”

The Trans Niger Pipeline is a major oil pipeline in Nigeria that transports crude oil extracted from oil fields in Rivers and Bayelsa States to the Bonny Crude Oil Export Terminal.

It is operated by Shell Petroleum Development Company Joint Venture, with a capacity of about 180,000 barrels of crude oil per day, which is about 15 per cent of Nigeria’s daily output.

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