Timipre Sylva, minister of state petroleum resources, has said that improved security surveillance along major crude oil pipelines is helping to shore up oil production from about 900,000 barrels per day to between 1.4 and 1.6 million barrels.
The minister said oil majors in the country drastically cut down production due to massive vandalism and theft of crude oil in the Niger Delta region by criminal elements.
Sylva stated this when he received delegates from Eni SpA, Monday, in Abuja, adding that the Federal Government was working to ensure that all local and international oil companies return to full capacity production in the country.
“The decisions of the oil companies have affected the volume of daily crude production and this has led to revenue loss for the country. The Federal Government desires to see all the oil majors return to their full production capacity to boost revenue for the government and also help the country meet its obligations to the Organisation of Petroleum Exporting Countries (OPEC)”, he said.
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The minister added that the government was targeting full production capacity of up to three million daily crude oil production and will continue to improve security along major crude oil pipelines while blocking every leakage through which crude is stolen by pipeline vandals.
“I am happy to hear that Eni has increased its crude oil production to 15,000 barrels per day as a result of the efforts of the government in protecting the pipelines in the region, I assure you that this trend will continue,” the minister said.
Mario Bello, head, Sub-Saharan Africa, Eni SpA, while reacting, said the government’s efforts in addressing the challenges of oil pipelines in the Niger Delta has enabled the company to increase its crude oil production from a near zero production level to about 15,000 barrels per day in the last one month.
He said as of last month, the company cried to the minister over the vandalisation and theft of their products, however, the situation has greatly improved.
“At one point we were producing almost nothing, but today, with the improved security situation along the pipelines, we are able to produce and export about 15,000 barrels of crude oil and if this trend continues, we will be able to reach our 30,000 barrels crude oil production,” Bello said.
