Nigeria’s oil production threatened as operators shut wells over rising theft

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has expressed concerns about the country’s production capacity, citing cases of deliberate shut of oil wells and pipelines by operators who are trying to deal with theft.

According to the NUPRC, the country’s level of crude oil theft is estimated at a daily average of 108,000 barrels in 2022.

Komolafe, at the Lagos Chamber of Commerce and Industry (LCCI) public-private dialogue on crude oil theft and artisanal modular refineries, said the monumental scale of losses arising from crude oil theft had created a hostile environment and disincentive to investors in the Nigerian upstream oil sector and magnitude of divestments in the industry.

He explained further that many operators had undertaken deliberate shut of wells, facilities and pipelines, which had further exacerbated the low production scenario.

He pointed out that unfortunately, only 132 million barrels of oil was received at the terminals, indicating that over nine million barrels of oil was lost to crude oil theft, amounting to a loss of one billion dollars in the first quarter of 2022.