By   Milcah   Tanimu

Oil production activities have resumed at **Oil Mining Lease (OML) 55** in Nigeria, following sustained military efforts to combat oil theft. These efforts have significantly reduced criminal activities in the Niger Delta region, creating a more conducive environment for operations.

**Belemaoil Producing**, an independent Nigerian oil producer, has restarted its operations at OML 55 after a three-year hiatus. The company acquired OML 55 from Chevron in 2015, but persistent oil theft forced a suspension of operations in 2021. Located approximately 40 km west of the Bonny oil export terminal, OML 55 encompasses five oil fields with a production capacity of around **14,000 barrels of oil per day (bpd)** and over **70 million standard cubic feet of gas per day**.

According to estimates from the **Nigerian National Petroleum Company Limited (NNPCL)** and the Ministry of Petroleum, Nigeria loses between **200,000 and 400,000 barrels** of crude oil daily due to theft. This loss represents a significant portion of Nigeria’s total crude production, which averaged **1.35 million bpd** in August 2023, falling short of its **OPEC quota of 1.5 million bpd**. Given the current price of Bonny Light crude oil at **$78.62 per barrel**, Nigeria is incurring billions of dollars in annual losses from oil theft.

The rampant theft has also prompted numerous **international oil companies (IOCs)** to exit the Nigerian market. Despite the implementation of the **Petroleum Industry Act (PIA)** in 2021, aimed at enhancing the regulatory environment and attracting investment in the oil and gas sector, major players like **Equinor** have divested their Nigerian assets. For instance, Equinor finalized the sale of its Nigerian subsidiary, Equinor Nigeria Energy Company, to **Chappal Energy** in late 2023.

This trend underscores the ongoing challenges facing Nigeria’s oil industry, despite recent reforms.