GDP Report Reveals NNPC Limited Winning Fight Against Crude Oil Theft As Oil Production Hits 1.45 Million Barrels Per Day In Q3

A report released by the National Bureau of Statistics (NBS) has revealed that the Nigerian National Petroleum Company Ltd (NNPCL) is winning the fight against crude oil theft as the oil and gas sector made significant improvements in its contribution to the country’s Gross Domestic Product in the third quarter of 2023.

This was revealed on Friday in the third quarter GDP report of the NBS.

The report showed that crude oil production rose by over 250,000 barrels per day, year on year from 1.2 million barrels per day in Q3 2022 to 1.45 million barrels in Q3 2023.

The report also showed that crude oil production rose quarter on quarter by 0.23 per cent from 1.22mbpd in Q2 2023 to 1.4mbpd in Q3 2023.

The development in the oil sector is linked to the efforts made by the NNPCL led by Mele Kyari to combat crude oil theft in Africa’s most populous country.

The menace of oil thieves had significantly impacted revenues from crude oil sales needed to defend the naira and meet the country’s fiscal obligations.

In five years between 2017 to 2021, crude oil theft and pipeline vandalism cost N4.3trn, according to the Nigeria Extractive Industries Transparency Initiative (NEITI).

However, with the determination of the national oil company, vessels, illegal refineries and oil thieves have been uncovered and dealt with.

Between November 11 and 17 this year, the NNPCL uncovered 172 crude oil theft cases.

During the period, NNPCL clamped down on 67 illegal refineries in Oowodokpokpo and Obodo-Omadino in Delta State, Ekeremor in Bayelsa State, Ohaji-Egbema in Imo State, Owaza in Abia state, and Emoha in Rivers State.

Further to their achievement, NNPC apprehended 12 vessels for AIS (Automatic Identification System) infractions also 8 illegal connections were detected in Abia, Imo, and Rivers states within the period.

Following the successful fight against oil theft which started years ago, the NBS said in the third quarter of 2023, growth in the oil sector improved as the real growth of the oil sector was –0.85 per cent (year-on-year) in Q3 2023.

This indicates an “increase of 21.83 per cent points relative to the rate recorded in the corresponding quarter of 2022 (-22.67 per cent).

“Growth also increased by 12.58 per cent points when compared to Q2 2023 which was –13.43 per cent. On a quarter-on-quarter basis, the oil sector recorded a growth rate of 12.47 per cent in Q3 2023.”

The oil sector according to the NBS, contributed 5.48 per cent to the total real GDP in Q3 2023 which is up from the preceding quarter, where it contributed 5.34 per cent.