New Telegraph

‘Nigeria loses huge funds to crude oil theft’

Oil theft

The Managing Director of Chevron Nigeria/Mid Africa Business Unit, Richard Kennedy, has said that the level of crude oil theft is costing Nigeria millions of dollars daily in revenue, which could have helped solve the nation’s fiscal challenges.

He also alleged that crude oil theft in Nigeria was an organised crime and should be differentiated completely from host community issues. He stated this while commenting on the host community provisions in the Petroleum Industry Act during a panel session at the recently concluded NOG Conference in Abuja. He advised that the agitations of host communities of oil-producing areas should not be confused with the spate of crude oil theft in the area.

 

He said: “From my experience, the issue with crude oil theft should not be confused with host community issues. It is much much much bigger than that. It is completely different from host community issues. Quite frankly it is organised crime.

“The volume of crude that is being stolen is well beyond comprehension. You can see some of the figures in the press, maybe it’s about 100,000 barrels per day at $100 per barrel and that’s $10 million per day that is being stolen.

 

And NNPC owns 60 per cent while taxes of 85 per cent are paid so it’s a huge loss for the country.” The Group CEO of Oando, Wale Tinubu, also said that about 20 per cent of Nigeria’s daily crude production were lost to oil theft.

 

He said: “There has been a 43 per cent reduction in our production from March 2020 to May 2022. We lose almost 20 per cent of our daily crude production to oil thieves and pipeline vandals and 20,000 barrels a day of oil is lost to oil theft. Basically some three million barrels on average yearly is lost to oil theft and pipeline vandalism.”

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