See What Rusty Pipelines Are Doing To Nigeria's Economy
Nigeria’s energy sector continues to take twisting turns.
It is either militants are blowing up the pipelines or oil prices are crashing in the global oil market.
This time around, it is rusty pipelines that are standing in the way of the 2 million barrels per day target set by the Ministry of Petroleum.
Although crude production volumes have risen since militants stopped attacks on installations in May; the 2 million pbd target has remained elusive.
The Minister of State for Petroleum Resources, Ibe Kachikwu appears to be the most pained.
Kachiwku said on Monday that oil Output in July was slightly below 1.8 million bpd.
"We continue to have challenges, some of our pipelines are old, so these are basically technical. They are not militancy-induced stoppages, but they are basically maintenance-induced stoppages," said Kachikwu, who spoke on the sidelines of an event in Abuja.
Nigeria's oil output has rebounded this year, aided by government efforts to placate militants in the Niger Delta region where the bulk of the country's crude is produced.
However, government agencies have struggled to maintain peak output levels.
The crude oil exports are even expected to fall to 1.72 million barrels per day in October, according to loading programmes.