Nigerian Minister: We lose 200,000 barrels of oil per day due to pipeline sabotage

Abuja-Sana

Nigerian Information Minister Lai Muhammad announced that Nigeria is losing 200 thousand barrels per day of oil, or more than ten percent of its production, as an average, due to pipeline sabotage.

Reuters quoted Muhammad as saying at a meeting in Abuja that the cost of repairing the pipelines alone is about 60 billion naira, equivalent to 145.99 million dollars annually, which greatly affects the economy.

He added that oil spills resulting from pipeline sabotage also have a devastating impact on water, air and soil quality.

Typically, the damages result from thieves stealing oil from pipelines to refine it illegally and sell it on the black market.

Nigeria relies on oil exports for more than half of its budget and 95 percent of foreign exchange. It is the largest oil exporter in Africa and produces about 1.47 million barrels per day of crude, according to an agreement with OPEC and other oil-producing countries to reduce production. Its production capacity is about two million barrels per day.