With an eye on
the national budget, Nigeria's state oil company said it would work
closely with police in an effort to tackle militant threats.
The Nigerian National Petroleum Corp.
pledged to coordinate
with the national police force on ways to address what the oil company
said were "incessant attacks" on oil and natural gas installations in
the country.
According to NNPC Managing Director Maikanti
Baru, "the attacks on oil and gas facilities are taking a toll on the
national budget with massive shortfalls in revenue as well huge losses
in petroleum products, environmental degradation, refineries shutdown
and loss of lives."
The International Monetary Fund said the
downturn in the Nigerian economy was a primary contributor to
contraction in Sub-Saharan Africa, adding the situation in Nigeria, the
region's largest economy, was particularly difficult. One key reason for
the Nigerian woes, IMF economists said, was the disruption to oil
operations in the Niger Delta.
The group calling itself the Niger Delta
Avengers said its fighters on Tuesday took out an oil export pipeline in
Nigeria operated by Chevron. The NNPC boss in response called on police
to enhance its protective actions around such facilities, saying his
company was ready with whatever assistance it could provide.
Police, he added, are working on "a number of
strategies" to protect infrastructure in some of the hard-to-reach parts
of the oil-rich Niger Delta.
The Nigerian petroleum company said it lost
out on hundreds of thousands of barrels of crude oil due to unrest and
banditry during the first five months of the year.
The militant group, which surfaced
early this year,
is fighting for a greater share of the oil wealth from Nigeria, which
is a member of the Organization of Exporting Countries. The group has
been in various stages of peace talks with the government since the
summer.
Total crude oil production last month was
around 1.52 million barrels per day, according to secondary sources,
which was about 7 percent higher than the previous month, though still
about 20 percent less than it was last year. A budget, meanwhile, from
the government in Abuja is based on production of around 2.2 million
bpd.
On Thursday, U.S. supermajor Exxon Mobil said it
made a discovery off the coast of Nigeria it said contained as much as 1 billion barrels of oil.
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