The Federal Government has raised an alarm over the rising rate of crude oil theft in the Niger Delta, disclosing that about $3.27 billion (1,361.37 trillion) worth of oil has been lost to vandalism in the past 14 months.
The government said high-level cases of oil theft have become a threat to the countrys corporate and economic existence, with the industry now thinking of transporting crude oil from fields to export terminals by trucks.
The Nigerian Upstream Petroleum Regulatory Commission, (NUPRC), in a presentation at a stakeholders engagement on oil theft in Abuja yesterday, said the government was extremely worried about the tragic situation.
The Commission disclosed that most of the crude oil losses came from Bonny Terminal Network, Forcados Terminal Network and Brass Terminal Network.
It listed factors that were aiding the criminal activities as: economic challenges, inadequate security, poor surveillance, poor community engagements, exposed facilities and stakeholder compromises.
The Commission stated that due to the high level of theft, the country has been unable to meet its OPEC production quota.
Speaking on the issue, the Chief Executive of NUPRC, Engr. Gbenga Komolafe, said the Government was determined to end the menace so that the country can benefit from the rising price of oil and also to protect the environment from oil spills.
Engr. Komolafe stressed that it was important that the government and the oil companies work together to resolve the issue, especially on the agreed volume of oil lost to vandals as the issues strike at the heart of Federation revenue.
In his remarks, the Chairman/Managing Director of ExxonMobil, Richard Laing, who represented the Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce, pointed out that though the issue was not new, it has grown from just oil theft to organised criminality with sophisticated operation.
The level of sophistication in terms of tapping into the pipelines, the distributions, efforts required to move hundreds of thousands of barrels a day isnt some guy coming along and tapping into a pipeline and taking container crude oil. It is organised criminality, Laing stressed.
On its part, the Independent Petroleum Producers Group (IPPG) disclosed that about 82% of its oil production was stolen in February 2022.
Represented by the Managing Director of Waltersmith Petroman, Chikeze Nwosu, the group said the independent producers were facing an existential threat.
Nwosu explained that the oil theft challenge has grown from what it used to be in the past of about 4 percent to a high of 91 percent in December, 2021.
According to him, The TNP (Trans Niger Pipeline) is the major issue. We have seen crude theft grow from single-digit percentages to reports of 91% in December for some of the operators who produce into the TNP, 75% in January; and the February report we got has an average of 82 percent.
He pointed out that the situation seems to be getting worse despite all efforts to curb it. He, therefore, called for urgent action from the government and stakeholders.
