’Theft danger to industry’ – Shell Nigeria
The Managing Director of Chevron Nigeria/Mid Africa Business Unit, Richard Kennedy, has noted that the volume of crude oil being stolen in Nigeria is beyond comprehension.
Kennedy, who spoke during a panel session held at the recently concluded NOG Conference in Abuja, noted that oil theft is an organised crime that is different from host community issues.
Commenting on the host community provisions of the Petroleum Industry Act, Kennedy emphasised the need not to confuse the agitations of host communities of oil-producing areas with the spate of crude oil theft being carried out in the area. He noted that the level of theft is costing Nigeria millions of dollars daily in lost revenue that could have helped solve our fiscal challenges.
In his remarks, the GMD of Oando Plc., Wale Tinubu noted that about 20% of Nigerias daily crude production is lost to oil theft.
Similarly, the Managing Director and Country Chair for Shell Petroleum Development Company of Nigeria Ltd., Osagie Osunbor, has said crude oil theft is anathema to the growth of the oil industry and constitutes the greatest existential threat to the industry. He stated that oil theft was one of the reasons that Nigeria had fallen behind in meeting her OPEC quota of 1.8 million barrels a day. He said the development has led to the shutdown of two of its major pipelines.
Osunbor said local companies which won licences to develop marginal fields would face challenges to transport their crude once they start production.
Nigeria lost $1 billion in revenue during the first quarter of this year due to oil theft, the petroleum regulator said last week.
