Shell Petroleum Development Company Nigeria Limited says crude oil theft is currently bleeding Nigeria’s economy.
The act,according to the multinational oil company, caused the nation $1 billion in revenue loss in the first quarter of this year,adding that crude oil theft increased to108,000 barrels per day (bpd) in Q1 2022, from 103,000 bpd in 2021.
Crude oil theft remains a major challenge affecting the Nigerian economy, Igo Weli, Head, Corporate Relations, Nigeria and Director SPDC of Nigeria Limited, on Tuesday in Port Harcourt, expressed thisf during an engagement with journalists on ‘Crude Theft, Pipeline Vandalism and Illegal Refineries.’
He said his company operates in over 70 countries, but thas never experienced the level of sabotage it has seen on its facilities in Nigeria.
The company will not exit Nigeria on account of the theft as Shel still has future with the country.
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He said: “You hear a lot of people clamouring for clean-up of Niger Delta, the point I am making is simple, that people should make the end-to-end link between their actions and the impact.If over 90 percent spills are caused by people with axe, saws and even explosive weapons, then you are creating a problem that will eat up the budget you would have used for education, health, etc.
“If you break pipes and the pipes leads to spills and it is very expensive to clean up and the government had to clean up for the environment to be safe for us, then you channel resources needed for other things to that. But it is avoidable.There is a mess in the environment which is robbing everybody. And as Nigerians, people who are interested in the future of this country, that should be the focus. How do we stop that mess? That mess has caused to our currency losing value.”
On the company’s movement to onshore, Weli stressed that the company was pushing hard onshore to get all the community committed.
Commending effort of the Rivers State Governor, Nyesom Wike in tackling the issues of illegal refining activities and soot pollution in the state, Weli implored the three tiers of governments to help stop crude oil theft and pipeline vandalism.”
Speaking,John Okojie, Lead, Right of Way and Encroachment, SPDC, noted that the biggest problem in oil industry was crude theft.
He said to ensure the control of the sabotage and ensure safe environment, Shell has continued to collaborate with communities effectively through direct surveillance and GMoU surveillance, adding that the company also proactively engages Government Security Agencies (GSAs) to prevent crude oil theft, illegal refineries and pipeline vandalism.