Lawmakers interrogate DPR, NNPC, CBN over alleged $20bn missing crude oil

*Forensic analysis of the data revealed a very wide margin between what was reported produced and what was lifted. We need an explanation from stakeholders involved ─Nigerian House of Representatives Ad-hoc Committee on Crude Oil Theft

*There is a lot of third party interference in which those points of (crude oil) theft were there through the land terminals, says Sarki Auwalu, Director/Chief Executive Officer of Department of Petroleum Resources

Alexander Davis | ConsumerConnect

Alleging a very wide margin between what quantity of crude was reported produced and what was lifted, the House of Representatives has said for seven years, crude oil lifted from Nigeria between 2005 and 2012 worth over $20 billion was unaccounted for.

Hon. Peter Akpatason, Chairman of House Ad-hoc Committee on Crude Oil Theft, stated this at the resumed hearing with top officials from the Department of Petroleum Resources (DPR) Wednesday, February 3, 2021, in Abuja, FCT.

The Federal lawmaker noted that the same trend of infractions was observed between 2016 and 2019.

Akpatason said: “Forensic analysis of the data revealed a very wide margin between what was reported produced and what was lifted. We need an explanation from stakeholders involved.

“DPR is the agency of government saddled with the responsibility of monitoring crude oil production and lifting. The Committee requested and obtained schedules of crude oil produced and lifting between 2005 and 2019.”

According to the Committee, “forensic analysis of the data revealed a very wide margin between what was reported produced and what was lifted.

“Between 2005 and 2012, DPR reported production of 1,746,621,167 barrels from four sampled oil terminals of Egeravos, Bonny, Forcados and Bonga.

“Out of these production volumes, only 1,417,200,848 barrels were accounted for, as having been lifted officially.

“A whopping volume of 329,420,319 barrels, valued at over $20 billion, could not be accounted for. The same trend of infractions was observed in the years 2016-2019.”

However, in defence of the allegation, Sarki Auwalu, Director/Chief Executive Officer (CEO) of DPR, blamed the crude theft on third party interference, especially at the land terminals.

The DPR Chief stated: “I will like to use this opportunity to give a brief on how we will account for hydrocarbon in this nation. I think that will provide a better view of this committee as well as Nigerians.

“The process starts with well, because every crude oil comes from well, and you cannot drill a well without knowing the capacity of that well to produce.

“Most of the thefts, they are coming from land terminals because the land producers, they have to use pipelines to transport the crude into the terminals for export. In the process, you have a lot of third party interference in which those points of theft were there; small volumes that account for the larger volume are being taken and they are being stolen”.

He explained that most of the discrepancies in production and export can easily calculate the theft volume.

Auwalu said the theft volume, if not all, comes from the land terminals. But the offshore terminals, it is actually practically impossible to steal crude from offshore terminals, since it is from the bottom of the sea.

Following the Department of Petroleum Resources (DPR) appearance before the committee Wednesday, the Nigerian National Petroleum Corporation (NNPC) and Central Bank of Nigeria (CBN) are expected to appear Thursday and Friday respectively.

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