Thread by @BudgITng

THREAD:

The oil and gas sector is still one of the most critical sectors begging for major reforms. The 2017 NEITI Oil & Gas Audit Report gives a breakdown of critical data to note:

#Fixouroil

The report which covers the activities of 68 companies gives the total crude production in 2017 as 690.46 million barrels.
44.22% of this volume came from joint ventures.

#Fixouroil

The 2017 figure shows a 4.53% increase in production compared to 2016. While there has been a steady decline in production from 2013 (800.48m barrels) to 2016 (659.13m barrels), the uptick in 2017 is encouraging.

#Fixouroil

A total of 688.29m barrels of crude was lifted in 2017 with the NNPC lifting 35.01% while private companies accounted for 64.98%. The sector also witnessed a 2.9% increase in crude lifting in 2017 having witnessed a year on year decline between 2013 and 2016.

#Fixouroil

Total gas produced in 2017 according to the report is 3.4million standard cubic feet (scf).

A breakdown of this figure shows;
38.92% (1.3m) sold,
34.75% (1.2m) utilized and
10.13% (0.35m) flared.

#Fixouroil

36.45 million barrels of crude was lost to theft and sabotage as reported by 25 operators in the sector. This is due to theft and sabotage.

The government must find a lasting solution to these issues.

#Fixouroil

The aggregate financial flows from the oil and gas sector amounted to $20.98 billion in 2017. This represents a 18.7% increase compared to 2016 figures.

#Fixouroil

Key findings in the report include:
- Payment default by some companies which led to revenue loss to the federation
- 20 companies had outstanding liabilities as of 2017 year end
- There was no payment for signature bonus in 2017.

#Fixouroil

The sector obviously will do better with more accountability and transparency. For example, the government needs to investigate non payment of outstanding revenues and ensure recovery. Also, DPR needs to be more transparent with the signature bonus account.

#Fixouroil