• 1 day Statoil Changes Name
  • 2 days Nuclear Bomb = Nuclear War: Saudi Arabia Will Develop Nuclear Bomb If Iran Does
  • 2 days Tillerson just sacked ... how will market react?
  • 2 days Petrobras Narrows 2017 Loss, Net Debt Falls Below $85bn
  • 21 hours Russian hackers targeted American energy grid
  • 17 hours Is $71 As Good As It Gets For Oil Bulls This Year?
  • 2 days Proton battery-alternative for lithium?
  • 2 days Ford Recalls 1.38 Million Vehicles (North America) For Loose Steering Wheel Bolt
  • 17 hours Oil Boom Will Help Ghana To Be One Of The Fastest Growing¨Economies By 2018!
  • 21 hours Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 2 days I vote for Exxon
  • 2 days South Korea Would Suspend Five Coal - Fire Power Plants.
  • 18 hours HAPPY RIG COUNT DAY!!
  • 2 days Why is gold soooo boring?
  • 2 days UK vs. Russia - Britain Expels 23 Russian Diplomats Over Chemical Attack On Ex-Spy.
  • 18 hours Spotify to file $1 billion IPO
Which Oil Major Has The Best Investment Strategy?

Which Oil Major Has The Best Investment Strategy?

With oil markets having recovered,…

Tajikistan’s New Hydroelectric Plant Can Benefit Entire Region

Tajikistan’s New Hydroelectric Plant Can Benefit Entire Region

Uzbek President Shavkat Mirziyoyev offered…

Nigeria To Track Oil Output, Sales To Prevent Theft

Oil Pipelines

In a bid to prevent oil thefts and curb revenue losses, Nigeria will start tracking this year the volume of its crude oil output and sales volumes and destinations, oil minister Emmanuel Ibe Kachikwu said in an address on the 2017 outlook for Nigeria’s petroleum sector.

“This year, we are going to commit to try tracking our oil so that from the moment one molecule is produced to the time it is sold and where it is sold, we will be able to track that and if we do that, we envisage billions of dollars in savings for the federal government,” Kachikwu said.

Oil theft has been just one of Nigeria’s oil industry problems in recent months. The country’s crude production has been severely crippled by militant attacks in the oil-rich Niger Delta to the point that Nigeria was exempt from OPEC’s production cut deal from November 30. Low oil prices and reduced domestic production have also battered Nigeria’s economy, which is highly dependent on oil export revenues.

Related: UAE Oil Minister: Too Early To Say If OPEC Deal Should Be Extended

Now Nigeria is aiming to increase its crude oil production and seeks to achieve lasting peace, Kachikwu said last month, adding that the country’s oil output had reached 1.8 million bpd. This recent production rate is higher than the average 1.63 million bpd in the third quarter of 2016, but still 400,000 bpd below the peak of 2.2 million bpd before the militant attacks on oil infrastructure started in the Niger Delta.

In this week’s address, minister Kachikwu also said that he would prefer long-term contracts for crude oil loadings compared to the current short-term contracts. Switching to longer-term crude deals would create contract certainty regarding the sales of Nigeria’s oil, the minister noted.

Just last week, state-held Nigerian National Petroleum Corporation (NNPC) said it had awarded the 2017/2018 crude oil term contracts to 39 companies to lift 32,000 bpd each and an NNPC unit to load 90,000 bpd.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News