PENGASSAN shuts down for 30 days, Nigeria risks losing 1.37 million

Members of the Nigerian Association of Petroleum and Natural Gas Seniors on Thursday threatened to shut down oil

Members of the Nigerian Association of Petroleum and Natural Gas Seniors on Thursday threatened to shut down oil production in Nigeria for 30 days if the federal government does not curb the ongoing oil theft in the Niger Delta.

Unionists protested in various parts of Nigeria including Abuja, Warri in Delta State, Kaduna and Port Harcourt in Rivers State. Findings by our correspondent revealed that Nigeria could lose about N1.37 trillion from the production and sale of crude oil, a major source of foreign exchange earnings for the country, if the workers follow through on their threats.

At a briefing held at the Delta Governor's Annexe in Warri, PENGASSAN Regional Chairman, Prince Audu Osihiohamele, noted with concern that "big men involved in crude oil theft are in government".


He added: “They say they are loading the ships, but we don't see them. Needle?'

He then said that if the authorities do not find a permanent solution to the menace, PENGASSAN will take more drastic measures.

"We will shut down the country for 30 days until we gather at the round table to unravel the mystery surrounding the theft," Oshihiohamele said. “If the government does not heed this warning, PENGASSAN will withdraw its onshore and offshore members from the oil production site and stop production for 30 days,” he added.


According to The  analysis, the production shutdown for 30 days could result in a loss of about 3.03 million barrels of crude oil, equivalent to about 1.37 trillion yen.

According to data from Nigeria's Upstream Petroleum Regulatory Commission, in January, February, March and April 2022, the country's crude oil production (excluding condensate) was 1.39 million bpd, 1.26 bpd, 1.24 bpd and 1.22 bpd. In May, June, July and August 2022, these figures were 1.02 mb/d, 1.16 mb/d, 1.08 mb/d and 0.97 mb/d respectively. Thus, the average oil production for eight months was 1,168 barrels per day. That means if workers stop production for 30 days, they will lose about 3.03 million barrels of oil.

As for oil prices over the same eight-month period, the monthly average price of Brent, the global benchmark for crude oil, was $86.51 in January and $97 in January, according to data from international analysis company $13 per barrel in February 2022 and $117.25 per barrel in March 2022. Average prices per barrel of crude oil for April, May, June, July and August 2022 were $104.58, $113.34, $122.71, $111.93 and $100.45, respectively. This means that the 8-month average commodity price is $106.74 per barrel. If it fails to produce about 30.03 million barrels within 30 days, the country will lose about $3.21 billion, or $1.37 billion (at Thursday's official exchange rate of $427.43/USD)

Protesters besieged the Delta Governor's office in Warri at 8am on Thursday.

The governor's compound was filled with demonstrators chanting solidarity songs and carrying placards denouncing mass theft. He called on the government to take immediate and active measures to reverse the negative trend that has practically ruined the national economy.

They complained that Shell and Mobil were forced to relocate and abandoned after being implicated in oil theft and pipeline vandalism. Prince Emea Okorie, the chairman of NNPC Ltd, Warri's PENGASSAN group, has expressed concern that Nigeria will no longer be able to meet the OPEC target of 1.8 bpd as it is “currently struggling to achieve 1 bpd by stealth”.


At the meeting, the director of the Governor's Office, Mrs. Violet Onowakkoppo, Warri says the protests are a good move. He praised the patriotism and love of peace of the participants.

He said this is everyone's concern and the struggle must continue until lasting peace in the region. Fire a service manager for non-performance within 30 days.

PENGASSAN National Chairman Festus Osifo, who led the protests in Abuja, has urged President Muhammadu Buhari (Retd.) to fire within 30 days if massive oil theft continues.

“I have repeatedly said that the Nigerian president must sit down,” he said. Minister of Petroleum Resources. He is also the commander in chief. "He has to act. He should provide KPIs and timelines to security directors. Give them a month and fire them if they don't make significant progress.

“We will bring in a new team that will look at all the security tools you are sending to the Niger Delta. Anyone convicted must go to prison."


Osifo said last year the union made several requests to stakeholders to address oil theft and damage to pipelines but an agreement was not successful.

“Over the past year, we have engaged all stakeholders and worked to find a solution to the plight of oil theft and pipeline vandalism,” he said.

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