Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, yesterday disclosed that Nigeria now produced 2.6 million barrels of crude oil per day, out of which 670,000 barrels are from the deep offshore.
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Before now, the production level stood at 1.3 million barrels per day.
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Speaking when she honoured the invitation of the House of Representatives Committee on Petroleum Resources (Upstream) at the National Assembly, the minister said about 6.8 BCF of gas was produced daily out of which 1.4 BCF per day or 21 per cent is flared, an improvement from the past when 80 per cent of AG produced was flared.
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Diezani added that the improved production level was propelled by the restoration of system 2C, which supplies crude oil to Warri and Kaduna Refineries and the success of the Amnesty programme introduced by the Federal Government, even as she disclosed that her ministry was presently implementing the real time pipeline system surveillance (RTPSS) project, which is aimed at detecting, locating and quantifying pipeline leaks in real time, thereby preventing severe loss of lives and properties in the event of pipeline rupture.
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She noted that the RTPSS project was 85 per cent completed for the gas system and 50 per cent completed for the liquid system adding that ‘the RTPSS project for both the gas and oil system was expected to be commissioned within the first quarter of 2012.
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Alison-Madueke explained that total reserve at the beginning of the year stood at 31.218 billion barrels of oil, 5.314 billion barrels of condensate and 182.816 trillion cubic feet of gas.
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Giving a breakdown of the growth recorded in the gas sector between 1999 and 2011, the minister said, “Reserves; 136.5 trillion standard cubic feet to 187 trillion cubic feet, production: 1.38 trillion standard cubic feet to 2.82 trillion standard cubic feet, utilisation: 515 billion standard cubic feet to 2.27 trillion standard cubic feet; flaring reduced from 63 percent to 21 per? cent”
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She further disclosed that the ministry was implementing the product trucking policy project which will enable the tracking, in real time of the location of product trucks and ensure the non-adulteration and non-diversion of the products. The project is expected to be commissioned next month.
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Reacting to her presentation, chairman of the committee, Hon. Muraina Ajibola, told the minister that the committee would study the presentation and might invite her at a later date for clarification.
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In a related development, the Senate through its joint? Committee investigating? the management of fuel subsidy fund has faulted explanations by Alison-Madueke for the overwhelming jump on fuel subsidy expenditure.
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The committee members? also ccused Madueke of not being prepared for the probe.
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The Senate, it could be recalled, had mandated its joint committees on petroleum (Downstream), appropriation and finance to investigate the management of fuel subsidy in the country.
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The resolution followed a motion by Senator Bukola Saraki (Kwara Central) who drew the attention of the Senate to alleged conflicting expenditure profiles of the Federal Government on fuel subsidy.
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The Senate had said that payment fuel subsidy has increased from N600 billion to N1.3 trillion in 2011.
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After her presentation yesterday, chairman of the joint committee, Senator Magnus Abe, told Alison-Madueke that members were not satisfied with her answers.
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He said: “We will let you go but you have to come back another day because members are not satisfied with your answers.”
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But Alison-Madueke put up a subtle protest when she demanded to know “what areas are you not satisfied with?”
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Abe, however, insisted that the minister should go back, consider questions by members to enable her prepare to offer required answers.
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Alison-Madueke had told the committee that in 2003, the federal government directed the Nigeria National Petroleum Corporation (NNPC) to pay the prevailing international market price for fuel products.
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She noted that the Petroleum Support Fund (PSF) was subsequently established in 2006 to fund purchases.
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She said that PSF was under funded by stakeholders leading the corporation to look for other means of funds to service its purchases.
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She listed continuous rise in the average consumption of fuel, increase in international price of fuel and that of exchange rate as part of the issues that gave rise to expenditure in fuel subsidy.
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