- Shell is concerned about its diminishing revenue, which is being harmed by everyday crude oil theft
- The act, committed through vandalism, is prompting Shell to reassess its involvement in the Nigerian oil and gas business
- Nigeria lost $1 billion in revenue during the first quarter of this year due to crude oil theft
Shell Petroleum Development Company of Nigeria Limited has raised an alarm that its revenue is under threat over the continuous theft of crude oil in Nigeria.
According to Mr Osagie Okunbor, the company’s managing director and country chair for Shell Companies in Nigeria, this has resulted in two of its major pipelines shutting, Businesspost reports.
Speaking at the just-concluded Nigeria Oil and Gas (NOG) Conference, he said oil theft was one of the reasons that Nigeria could not meet its quota of 1.8 million barrels a day instituted by the Organisation of the Petroleum Exporting Countries (OPEC) as it has recorded a constant drop in its production numbers.
Shell has operated for decades in Nigeria and, together with other oil majors, is selling onshore assets to focus on deep water drilling.
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“Two of our most important pipelines in this country today are shut down with hundreds of thousands of barrels a day shut-in."
He added that local companies which won licences to develop marginal fields would face challenges in transporting their crude once they start production.
Marginal fields are smaller oil blocks located onshore or in shallow waters and are typically developed by local companies.
Oil theft has resulted in the declaration of force majeure at Bonny Oil & Gas Terminal, a pipeline transporting crude from the oil-rich Niger Delta to export vessels, among others, creating a hostile environment and disincentive to investors.
FG also crying out
In a recent report, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) disclosed that Nigeria lost $1 billion in revenue during the first quarter of this year due to crude oil theft.
“It is a fact that the issue of theft, whether as a standalone or as the basis for us to meet our OPEC quota is an existential threat for this industry"
According to Mr Gbenga Komolafe, the head of the commission, out of the 141 million barrels of oil produced in the first quarter of 2022, only about 132 million barrels of oil were received at export terminals.
NNPC sets date for completion of Port Harcourt refinery
Legit.ng reported that Mele Kyari the Group Managing Director of the Nigeria National Petroleum Company (NNPC), has announced date when the Port Harcourt refinery would be ready
He made the promise before the House of Representatives on the resumption of investigation on the state of the country’s refineries.
When asked, Kyari, who was represented by the General Manager, Refineries & Petrochemicals, Mustapha Yakubu, reaffirmed to the lawmakers on the expected date of completion.