The International Energy Agency (IEA) has said that the Federal Government as well as local and international oil companies (IOCs) operating in Nigeria lose an estimated $7 billion (N1.05 trillion) to oil theft annually.
In its report, the 28-member agency said Nigeria’s crude oil production had dropped to the lowest level for more than two years in October 2012, due to the recent flooding in some parts of the country and widespread theft of crude oil. The IEA report noted that Nigeria’s crude oil output fell to 1.95 million barrels per day (mnbpd) in October, after production in recent months ranged between 2 mnbpd and 2.5 mnbpd. According to the report, the drop from September 2012 to October 2012 was around 110,000 barrels per day, with the country’s output falling to “the lowest level in around two-and-a-half years”.
The report however stated that by early November, production levels were recovering, with export loading schedules showing increased volumes for December.