Natural resources such as crude oil are a pivotal aspect of the economy. However, the economy is severely affected by the Coronavirus pandemic. Countries are not selling the same amount of fuel they used to sell three months ago. Despite the hit, some African countries sell their oil to boost the economy.
For instance, Nigeria is one of the well-known African countries in exporting oil. Since the beginning of this year, the country has managed to sell crude oil and gas exports worth over $5.18 billion. Even thou they are making this much, Nigeria see reoccurring attacks on oil pipelines across the nation. According to statistics, pipeline attacks increased by fifty percent since January this year.
Oil, Financial boost and pipeline breaches
Yesterday, the Nigerian National Petroleum Corporation released the latest financial and operational reports. The details showed that there is a remarkable 94.30% increase in earnings compared to December levels. As per the report, the crude oil export contributes around $336.65 million sales which are 77.42% of January dollar transactions. The latter compares to $136.36 million in sales for a month earlier. Besides, gas export sales totaled to $98.20 million.
Nigeria sees about sixty pipeline breaches. It is a hike, compared to forty occurrences recorded in December. State oil firm says that Atlas Cove-Mosimi, and the Mosimi-Ibadan axis, took part in the breaks. To be exact, the board notes that both contributed 50% and 17% in line breaks, respectively. The remaining thirty-three percent accounts for all other routes.
NNPC is in partnership with neighboring communities and other stakeholders to minimize the pipeline vandalism. NNPC says it supplies about 1.20 billion that is 38.68 million liters of the Premium Motor Spirit in a day throughout the month. The corporation also says it has placed a mechanism to check daily stoke of fuel. The main plan is to achieve a smooth circulation of crude oil products as well as nil fuel queues across the country.
Nigeria earns big in gas exports
In the gas sector, the nation gets significant revenue to boost its economy. For instance, in January, out of 253.09 billion cubic feet of gas, the country commercialized 151.16 cubic feet of gas. The quantity of gas sold consisted of 36.20 billion cubic feet (BCF) for the domestic market. Besides, it also included 114.96 BCF for the export market.
The sell transforms to 1,167.80 million standard cubic feet (mmscfd) of gas supply for the domestic market as well as 3,708.23mmscfd for exports. Breaking this further, NNPC says they sell about 59.89% on average of gas in a day. On the other hand, the re-injected 40.11% is flared or used as upstream fuel gas.
Conclusion
Despite the pipeline vandalism, as you can see, Nigeria is doing great in the crude oil sector. In most cases, they flare the re-injected gas. Gas flare rate is about 7.90% for the review month, translating to 643.59mmscfd.
Furthermore, out of the 1,167.80mmscfd of gas for the domestic market, 639.70mmscfd is supplied to gas-fired power plants. They provide the remaining 528.10mmscfd of gas to other industries.
More:
- What Could be The Reason for Prices of Oil Going Negative?
- OPEC And Allies Finalize Record Oil Production Cut After Days Of Discussion.
