Shell Petroleum Development Company Limited, subsidiary of Shell Companies in Nigeria has disclosed that Nigeria loses about $1.5 billion annually because of crude oil theft and urged the government to urgently address the situation
Mutiu Sunmonu, the Managing Director of Shell Petroleum Development Company made the disclosure while speaking at the CWC-organised Nigeria Oil and Gas conference and exhibition in Abuja last Tuesday.
The revelation came just as the state-run Nigerian National Petroleum Corporation said the thriving business of crude oil theft by rings of organised syndicates, now pose a threat to oil loadings from Nigeria's export terminals.
Sunmonu said that the act has reached a point where the lives of oil workers as well as the people in the Niger-Delta, are in danger.
He said the Nigerian government must begin to enforce law and order in the troubled region, as this would also ensure a conducive atmosphere to fast track development in the region.
Also speaking on the crisis in the region, NNPC spokesman, Levi Ajuonuma, said oil loadings at Nigeria's terminals have come under threat by the activities of oil thieves.
Nigeria produces around two million bpd but officials said as much as 100,000 bpd are lost to theft. Proceeds from the sale of the stolen crude are used to procure arms with which militants unleash terror in the region, officials say.
Author:
Ksenia Kochneva
