Minister of state for petroleum resources, Timipre Sylva, has said the major sources of crude oil losses in the country remain theft, pipeline vandalism, and decayed infrastructure.
The minister was responding to statements by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) that 40 percent of crude oil losses were due to inaccuracies in measurement.
In a statement signed by Horatius Egua, his senior adviser, media and communications, Sylva said contrary to reports that about 40 per cent 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 also pointed out that some of the oil infrastructure were old and decayed and cannot perform at maximum capacity and that 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.
The minister said the government was aware of and determined to change the tide through improved investments and security along the major oil and gas pipelines in the Niger Delta region.
According to him, 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.
He urged the NUPRC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to harmoniously work together as 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 block all existing leakages.
