Baru Underestimates the Output of Nigerian Independents

By McJohn Akobata, in Warri

Maikanti Baru, Group Managing Director and Chief Executive Officer of the Nigerian state hydrocarbon company NNPC, has claimed that Nigerian Independent E&P companies were producing around 10% of the national output.

He made the claim when he met with their representatives in his office in Abuja a week ago.

But 10%, which means 250,000BOPD at the most, and more realistically, 220,00BOPD, is erroneous. On a good day, Nigerian independents produce over 400,000BOPD gross, which is at least 16% of national output, and this is extremely conservative, Africa Oil+Gas Report can authoritatively report.

Mr.Baru, PhD, had apparently not consulted his company’s own generated statistics.

Of course, on a bad day (when key pipelines are shut down), everyone is affected, and that includes IOCs, which then means less production from Nigerian independents correlates with less production from IOCs.

In the month of July 2017, six Nigerian Independents, in Joint Venture with NNPC itself, pumped some one hundred and sixty nine thousand barrels of crude oil a day (169,000BOPD) gross through the TransForcados system in the Western Niger Delta.
Three other such indigenous companies, also JVs with government, collectively delivered on average 182,000BOPD(gross) through the Nembe Creek Trunkline in the Eastern Niger Delta.

That means that Nine Nigerian companies grossed 351,000BOPD in July 2017. These companies include Aiteo/NNPC Joint Venture, Seplat /NPDC Joint Venture, Eroton/NNPC Joint Venture Shoreline /NPDC Joint Venture, NecondeNPDC JV, Newcross/NNPC Joint Venture as well as NDWestern/NPDC, Elcrest/NPDC and FHN/NPDC Joint Ventures, On top of these, four non JVs, including Conoil, Amni, Midwesternand Oriental, produced over 60,000BOPD collectively. Details are available here.



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