Improved security raises oil revenue as troops curtail theft, sabotage
By Jeph Ajobaju, Chief Copy Editor
Nigeria made an additional N363 billion from crude oil sales in the fourth quarter of 2022 (Q2 2022), according to figures from the Petroleum Ministry which also show increased oil production.
Output rose by 1.014 million barrels per day (mbpd) in October, an increase of 0.077mbpd compared with 0.937mbpd in September. It jumped to 1.185mbpd in November, up by 0.171mbpd in October.
Output also increased to 1.253mbpd in December, a rise of 0.05mbpd on November figures.
Data obtained from two international economic and statistical firms – Statistica and Country economy – shows the average cost of Brent, the global benchmark for crude, was $93.4 per barrel (pb) in October, $89.62 in November, and $76.42 in December
The PUNCH reports that since oil production in Nigeria rose by 0.077mbpd in October, this amounted to an increase of 2.387 million barrels that month.
At an average price of $93.4 pb, Nigeria earned an additional $222.95 million (N101.02 billion, at the official exchange rate of N453/$1) in October 2022.
Oil production rose by 0.171mbpd in November, an equivalent 5.13 million barrels with the average price of $89.62 – oil earnings grew by $459.75 million (N208.31 bill at N453/$1).
Oil output increased by 0.05mbpd in December, an equivalent 1.55 million barrels with the average price of Brent at $76.42 pb.
Therefore, oil revenue in December jumped by $118.45 million (N53.67 billion at N453/$1).
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Gains from improved security
Nigeria earned an additional N363 billion from oil in Q4 2022 following improvement in security in the Niger Delta after President Muhammadu Buhari ordered security agencies to eradicate crude oil theft and pipeline vandalism.
Buhari gave the directive through Petroleum Minister of State Timipre Sylva while addressing troops of the Joint Task Force Operation Delta Safe in Effurum and Port Harcourt, per The PUNCH.
“Mr. President has mandated us to eradicate crude oil theft. He has directed that no litre of crude oil should be stolen across the country again, especially in the South-South,” Sylva said in a statement he issued through his Media Aide Horatius Egua.
“He wants crude oil theft completely eliminated by May 29, 2023, as one of the legacies of his government. This is the message from Mr President. We are not where we want to be, but we are happy at what we are seeing.
“I am happy to hear that morale is high here. We were here a few months ago to hand over the mandate of Mr. President to you and that is to ensure that there is zero tolerance for crude oil theft in the region.”
Prior to the renewed security efforts, daily oil production was about 900,000 bpd.