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Nigeria loses 622 000 dollars daily to criminal activity in oil sector

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The criminal activities in the oil and gas sector in Nigeria’s Niger Delta are costing Shell Petroleum Development Company of Nigeria (SPDC) Joint Venture of 662 000 dollars daily in revenue.

The losses result from daily attacks on pipelines by suspected crude oil thieves and vandals.

On Monday, 9 September 2019, Igo Weli, SPDC’s General Manager, External Relations, said in Port Harcourt at a media workshop on Pipelines Right of Way, Encroachment and Vandalism.

“SPDC JV is currently losing about 10 000 barrels per day (bpd) of oil daily from its pipelines to crude oil thieves in the Niger Delta.

“This is a reduction from the loss of around 11 000 bpd in 2018 and about 9 000 bpd of oil lost daily in 2017.

“These attacks were on critical assets that produce the crude oil, which accounts for over 90 percent of Nigeria’s foreign exchange earnings and the bulk of government revenue.’’

More than 1.160 illegal theft points have been removed from the system 2012, he said.

The pipelines were breached by vandals 111 times in 2018 alone resulting in oil spills in the Niger Delta.

“We are concerned about the lives and safety of those involved in pipeline vandalism and crude oil theft as well as the environment.

“SPDC puts safety first and has constantly made appeals to those involved to stop destroying their lands and heritage from the spills and pollution arising from their activities.

“We are calling on government, communities and other stakeholders to stem the incessant attack on our oil assets in the Niger Delta,” he appealed.

He said that such illicit activities had denied the company and Nigeria the needed revenue to drive business.

He said that despite the attacks on its facilities, the company had spent billions to fund projects in the communities it operates.

– APA

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