Sylva counters NUPRC, says theft is major cause of crude oil losses

Timipre Sylva, minister of state for petroleum resources, says the major sources of crude oil losses are theft, pipeline vandalism, and decayed infrastructure.

Sylva, in a statement on Monday, said despite the challenges, the federal government was determined to end the trend.

The minister said the FG planned to halt the menace through improved investments and security along the major oil and gas pipelines in the Niger Delta region.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had said 40 percent of crude oil losses was due to measurement inaccuracies.

Speaking on the matter, Sylva said contrary to reports that about 40 percent of the volumes of crude losses are due to measurement inaccuracies; lack of investments and a push towards renewable energy were some of the causes of crude oil losses.

“It is a known fact that the major losses of crude oil in the country have been through theft and destruction of oil pipelines,” he said in the statement signed by Horatius Egua, his senior adviser, media and communications.

“Again, we also know that some of the oil infrastructure are old and decayed and cannot perform at maximum capacity.

“And there is also the issue of lack of investments in fossil fuel in the country and the drive towards renewable energy has really hampered new investments in this sector.”

Sylva said the government had put measures in place to restore sanity in the sector, adding that the problems associated with crude oil losses are systemic issues that are already being addressed in an effort to find long-term solutions.

The minister, Sylva therefore, urged the NUPRC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to harmoniously work together.

He said the federal government cannot continue to lose revenue through perceived lapses in crude oil production, especially at this very critical period of scarce revenue for the country.

The collaborative efforts, according to Sylva, will ensure that the constraints and impeding challenges in the optimal crude oil production volume are speedily addressed to boost national revenue.

The minister said now was not the time to dwell on the mistakes of the past or engage in needless blame games, but a time to work to close all existing leakages. 

This, he said, will enable the government to get maximum benefits from its crude oil and gas assets.

While expressing satisfaction at the improved security along the major oil pipelines in the Niger Delta region, Sylva called for sustained efforts by all concerned to maintain maximum crude oil production.

“We are very confident that Nigeria will achieve two million barrel per day crude oil production target very soon,” he said.

“The government is doing everything possible to get to where we should be and everyone is working hard to achieve this.”