NNPC disagrees with Shell on $700m loss
Emma Ujah, Abuja Bureau Chief
Terseer adamu(Review)
ABUJA — Nigerian National Petroleum
Corporation, NNPC, has disagreed with claims that Shell lost $700 million to
oil theft in the second quarter of the year.
NNPC said in a statement by the
corporation’s Acting Group General Manager, Public Affairs Division, Ms. Tumini
Green, in Abuja, yesterday, that Shell’s claim was “defective” and that the
loss the multinational oil firm claimed to have suffered was not based on its
operations in Nigeria.
NNPC described Shell’s argument that
its current divestment was due to harsh operating environment and absence of
leadership in the oil industry as defective and rooted on weak syllogism.
According to NNPC: “Mergers,
acquisition and divestment, MAD, is a global portfolio management strategy
employed by mostly big corporations to restructure and reposition companies for
better and efficient revenue growth and competition.”
It wondered anybody “could canvass
such position when the multinational oil companies themselves, especially
Shell, have repeatedly stated that part of the reasons for divestment of its
assets was a deliberate measure to encourage and promote indigenous participation
in the upstream oil and gas industry.
On Shell’s report
“With regard to claims by Shell that
it lost $700 million by the second quarter of 2013 to crude oil theft and other
disruptions in Nigeria,” NNPC said “the loss claims are not localised to
Nigeria as reported.
“Shell’s acquisition of Shale oil
and gas assets in North America has also proven not to be good investments and
as such programmed for divestment to minimise risk.
“In order to further buttress the
global challenges, Shell’s current tight oil output is 50,000 barrels per day,
bpd, as against an estimated 250,000bpd in the United States.
“Furthermore, ExxonMobil’s Q2 2013
earnings were down substantially by 57 percent year-on-year primarily due to
prior year gains, Japanese restructuring and divestment.”
NNPC said that Shell’s divestment
were a blessing in disguise for the nation as they “have in fact increased
indigenous participation which will in turn create new job opportunities,
reduce capital flight, encourage capacity building and support gas-based
industrialisation aspirations.”
‘We’re winning war against oil
theft, vandalism’
It claimed that the nation was
winning the war against oil theft and pipeline vandalism, which was being led
by the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke and the
leadership of the corporation.
Consequently, the conglomerate
disclosed that daily crude oil production had increased to an average of 2.4
million pbd.
It said: “Suffice it to say that
some vandalised pipelines and flow stations have been repaired and re-opened
such that average current national daily production stands at 2.4 m/bpd
compared to the average year to date figure of 2.13 m/bpd as at June 2013.”
The corporation traced the current
success to the minister’s directive to NNPC to constitute an industry-wide
committee on Security Strategy Against Crude Oil and Product Theft.
That committee’s members include
representatives from NNPC, all IOCs, NPDC, security agencies and Oil Producers
Trade Section, OPTS, of the Lagos Chambers of Commerce and Industry, LCCI.
Production projections
NNPC said: “In a fortnight, repair
works on the Nembe Creek Trunk Line, which has a daily capacity of 150,000 bpd
is expected to be fully completed.
“On completion, daily average crude
oil production is expected to increase to 2.50 m/bpd which will exceed the
national daily target of 2.48 m/bpd.
“Our expectation is to increase
production from the 2.48 to 2.55 m/bpd (both crude and condensate) for the rest
of the year. We have the capacity and potential to maintain production above
2.55 m/bpd in the country.
“All that is required is to continue
the fight against pipeline vandalism and crude oil theft to achieve this
target. This will increase our 2013 average production to about 2.34 m/bpd if
the current fight against pipeline vandalism and crude oil theft is sustained.”
The corporation restated its
determination to work with all stakeholders in the oil and gas industry to
ensure effective management of the nation’s vast hydrocarbon resource base.
NNPC expressed gratitude to security
agencies that have been collaborating with its team and assured that it was
determined to sustain this tempo to free the nation’s oil resources from every
form of criminality.
Source: http://www.vanguardngr.com
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