Shell loses N481m daily to oil thieves

Oils thieves in the Niger Delta region are digging deep into the pockets of the Shell Petroleum Development Company, whose management has said that an average of 37,000 barrels of crude oil are being stolen on a daily basis from its Joint Venture facilities in the region.

At the international price of $65 per barrel for Nigeria’s Bonny light, the amount of oil stolen from the company amount to about $2.4 million (N481m) daily.

The company’s Head, Right of Way Management, Mr. Afohron Sekobe, made this known on Tuesday during a presentation at a seminar with the theme, “Effects of Pipeline Vandalism, Crude Oil theft and Encroachment Issues”.

Sekobe, speaking at the seminar which was organised by the multinational oil company in Yenagoa, Bayelsa State capital, for journalists in the region, said investigation revealed that the criminal breach of oil facilities was the cause of over 75 per cent of spill incidents from SPDC JV pipelines in 2014 alone.

Read also: Lagos, a thriving hub for oil theft

According to him, oil theft, equipment failure, sabotage, pipeline vandalism and illegal refining are the main sources of pollution in the region.

Sekobe, whogave a graphic detail of the mode of operation of oil thieves, also noted that over 92 per cent of oil volume spilled form SPDC JV facilities between 2010 and 2014 was caused by oil-related theft.

He said illegal interference with pipelines and other illicit activities such as stealing of well head equipment caused the deferment of additional 110,000 barrels of production per day.

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