Nigeria has wasted billions of dollars in potential revenue due to underreported volumes by relying solely on operator data; not just because it is unable to determine how much is in production from its reserves.
In order to combat theft, operators always purposefully shut down oil wells and pipelines. Which has led to concerns from the NUPRC over the nation’s production capacity.
In fact, Komolafe had stated that the level of theft had caused the Bonny Oil & Gas Terminal (BOGT) to declare a state of force majeur and to shut down wells from fields that were evacuating via the Nembe Creek Trunk Line (NCTL) and the Trans Niger Pipeline (TNP); noting that a similar trend had continued in 2022.
The regulator is looking at all available options to generate income; and ensure that the oil sector becomes financially viable for investment.