800,000 barrels of crude lost daily due to vandalism – Minister says
Kachikwu said the continued bombing of offshore facilities has led to a decline of crude oil production from 2.2 million barrels to 1.4 million barrels daily.
He said the continued bombing of offshore facilities has led to a decline of cruse oil production from 2.2 million barrels to 1.4 million barrels daily.
The minister also said “we declined from 2.2 million barrels which was the focus of the 2016 budget to 1.4 million barrels as of today
“There are still a whole lot of things we need to pay attention to; infrastructure is key, but we have not as a country over the last 20 years invested in infrastructure in the oil sector.
“Our pipelines are 35 years old and none has been replaced; we have not been able to put gas infrastructure in place, our refineries are next to comatose and old and we are working hard on them.”
Kachikwu said this while fielding questions from members of the House of Representatives, in the Green Chambers on Monday, May 16, 2016.
He also assured the lawmakers that his ministry is doing all it can to repair the affected pipelines, adding that “Our critical facilities are at a breakdown stage, so no serious infrastructure has taken place.
“No country in the world will expect that the price system in the country will benefit its citizens if it doesn’t invest in infrastructure.”
The minister also suggested that new pipeline infrastructures be put in place to ensure easy flow of crude to different points in the country.
Kachkwu was summoned by the lawmakers to explain the rationale behind the recent hike in fuel price.
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