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‘Nigeria Loses 70,000bpd Crude Through Theft’
By Mike Oduniyi, 11.29.2004
Oil theft, through illegal bunkering activities in the creeks of the Niger Delta, has increased to an average of 70,000 barrels per day (bpd), according to the latest figures from the Shell Petroleum Development Company (SPDC). In monetary terms, the country could be losing some $1.7 million income daily from its 55 percent share in the oil produced by Shell. The theft, said to be perpetuated by some highly organised crime gangs, had reduced to 50,000 bpd level as at mid this year from a peak of 200,000 bpd last year. The Managing Director of SPDC, Mr. Basil Omiyi said at the weekend that the method of siphoning crude from facilities in the creeks, was getting more sophisticated. "We are probably losing on the average some 70,000 bpd of crude. Recently we found something that had been camouflaged as a juju shrine and by the time they opened up the shrine it was a very sophisticated arrangement of pipes and valves for taking crude out. "It doesn't help the reputation of Nigeria. When people invest here they would like to be able to depend on the resources of law and order to provide a peaceful conducive and controlled environment for working," Omiyi said. The Shell boss added that crude oil bunkering was doing a lot of damage to the nation's reputation. Some senior Naval officials are currently undergoing court martial for their alleged role in the disappearance of an ocean vessel, "MT African Pride", involved in oil theft. Omiyi said crude oil theft affects all oil producing companies in Nigeria, including the Nigerian National Petroleum Corporation (NNPC). He added that the continued closure of the Warri refinery was linked to vandalisation of the pipeline delivering crude to the plant. He reiterated the company's earlier call for the introduction of finger printing of crude emanating from Nigeria's export terminals. "If you could finger print our crude, then if it goes outside as rogue crude, then somebody could say this is crude oil from Nigeria, how come it is not coming through the right process of international crude oil marketing," said Omiyi. Worried by the act, the Federal Government had transfered the prosecution of oil pipe vandals and crude oil theft related crime suspects from the Police to the Economic and Financial Crimes Commission (EFCC). A total 47 suspected oil thieves were arrested recently in a fresh onslaught by the Nigeria Navy personnel. The syndicates, which specialised in breaking into oil manifolds and risers in the night to perpetuate the act, were more prominent in oil production facilities in Cawthorne Channel, Soku, Alakiri, Ekulama and Sombreiro creeks, all belonging to Shell Petroleum Development Company. Oil producing companies under the umbrella of the Oil Producer Trade Section of the Lagos Chamber of Commerce and Industry (LCCI), have had to write President Olusegun Obasanjo on the development and the quantity of oil being lost. On the relocation of Shell headquarters to Port Harcourt, Omiyi said this will allow the company to focus more on its core business in the upstream sector in Nigeria, save a lot of cost and stay closer to stakeholders the government and the people. "The (Shell) regional office coming to Africa brings in a completely new dimension. It means Nigeria will get that prominence for being the headquarters of Shell E&P Africa, the team that works in E&P Africa will be in Lagos," he said.
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