News
FG Loses N93.436bn To Crude Oil Theft, Pipeline Vandalism
With a daily loss of about 11,000 barrels of oil from its pipelines to crude oil theft, the Federal Government has lost N93,436,200,000 in one year in revenue earnings to all tiers of government – local, state and federal – from sale of crude oil Shell Petroleum Development Company’s production alone.
This translates to a loss in revenue of $715,000 (about N259.545million) per day and N7,786,350,000 in 30 days to the government at an estimated exchange rate of $65 per barrel at $1 to N362.
Consequently, the Shell Petroleum Development Company of Nigeria Limited (SPDC) has cried out for help from government, communities and other stakeholders to stem the incessant attack on oil assets in the Niger Delta.
The company expressed its frustration, last Monday, at a media workshop on ‘Pipelines Right of Way Encroachment and Vandalism’ held in Port Harcourt, Rivers State capital where the its headquarters has been domiciled since 2004.
Speaking at the event, SPDC’s General Manager, External Relations, Igo Weli, said “These are critical national assets with 55 per cent government interest and they produce the crude oil that accounts for over 90 per cent of Nigeria’s foreign exchange and the bulk of government revenue”, adding that, “Hurting these assets means hurting the nation’s revenue, the economy of the states, the health of the people and the environment”.
According to Weli, “Crude oil theft on the pipeline network resulted in a loss of around 11,000 barrels of oil a day in 2018, which is more than the approximate 9,000 bbl/d in 2017”, adding that “since 2012, SPDC had removed more than 1,160 illegal theft points on its joint venture pipelines in the Niger Delta”.
He noted that as part of efforts to ensure the integrity of its pipelines, SPDC has replaced 1,300 kilometres of pipelines out of the 4,000 kilometre-pipeline across the five states of Abia, Akwa Ibom, Bayelsa, Delta, Edo and Rivers in the last five years in the Niger Delta, but regretted that in spite of this huge investment in the safety of the pipelines, more organised sabotage and vandalism of the critical national asset has continued.
Nelson Chukwudi
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