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Monday, July 19 2004

Vol 17 No.131

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  • New Page 31

    Bunkering: Nigeria loses 40,000 bpd

    SOPURUCHI ONWUKA

    NIGERIA is losing about 40,000 barrels of crude oil worth about $1.6 million (about N224 million) daily to thieves on the biggest oil exploration and production joint venture (JV) operated by Shell Petroleum Development Company (SPDC) Nigeria Limited.

    This is besides the annual $40 million (N5.6 billion) spent by the JV on vandalisation, spills and remediation associated with crude stealing from networks of facilities deployed in the operations.

    It was learnt week-end that the situation is likely to worsen by the end of the year with the volumes stolen and spilled tripling if urgent measures are not taken to halt the trend.

    Already, the Navy has arrested 41 people, 22 barges with combined capacity of 44,000 metric tonnes, micro-pumping machines, boats and canoes used in illegal bunkering.

    Crude thefts reached alarming proportions last year, a situation that compelled President Olusegun Obasanjo to despatch a delegation to neighbouring West African countries and Cameroun to dissuade them from patronising stolen crudes from Nigeria.

    In its 2003 annual reports, Shell stated that it suffered 88 crude oil thefts and loss of nine million barrels of crude oil and deferred another 13.8 million barrels.

    Shell’s Production Manager in charge of the Eastern operation Mr. Mutiu Sunmonu told journalists in Port Hacourt Rivers State that crude thefts from JV facilities peaked at 100,000 barrels per day (b/d) in 2003 before the presidential intervention.

    The presidential delegation led by erstwhile Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC), Mr. Jackson Gaius-Obaseki, had elicited commitments from the identified buyers to dissuade from illegal crude trade with the thieves.

    NNPC representing government in the JV is the principal interest holder with 55 per cent equity share while Shell holds 30 per cent, Elf 10 per cent and Agip five per cent.

    Mr. Sunmonu who said the efforts of the Obaseki team reduced rate of stealing to 10,000 b/d last year, however stated the incidents continued to rise in the first quarter of this year and now stands at over 40,000 b/d.

    "We regularly reported these incidents and their impact to the Federal Government, which responded by improving and expanding the level of security patrols on the waterways," Shell said in the 2003 report.

    Commanding Officer of NNS Pathfinder in Port Harcourt, Capt. Goddy Ohuabunwa, told journalists at the base that his men have arrested 41 suspects in connection with crude theft in the various swamp locations.

    According to him, 13 out of the 41 have been handed over to the Economic and Financial Crimes Commission (EFCC) while the rest were with the police for prosecution.

    Captain Ohuabunwa said his men intercepted the bunkering facilities during patrol of the waterways in response to the resurgence of crude stealing.

    He said the facilities and their contents were seized after overpowering the illegal bunkering crews who, he said, are armed with sophisticated weapons.

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