6th March, 2013
Theft of crude oil is not a new phenomenon in the Nigerian oil industry. In fact, it has been going on for decades with the authorities paying lip service to eradicating it. But recently crude oil theft from the pipelines of the Nigeria National Petroleum Corporation, NNPC, in both coastal and inland routes, has assumed a frightening dimension.
Oil industry experts estimate that the country loses over $6 billion dollars in crude oil theft annually.
Lending credence to this, the Managing Director of Nigeria’s biggest oil production company, Shell, Mutiu Sunmonu, on Sunday raised an alarm over the unprecedented oil theft in the country and threatened that the company will shut down operations if the trend was not checked.
According to him, crude oil theft from Shell pipelines in the creeks of the Niger Delta has reached an alarming 60,000 barrels per day.
“The situation in the last few weeks is unprecedented. The volume being stolen is the highest in the last three years, over 60,000 barrels per day from Shell alone,” he stated.
Nigeria currently produces two million barrels of crude oil per day.
This is a very sad development. It is not the first time an alarm is being raised over the theft of crude oil but it has assumed an unprecedented level in the life of this administration. It appears the Goodluck Jonathan administration is not doing anything to stop this organised theft.
Reports abound of the existence of illegal crude oil refineries in the Niger Delta where stolen crude oil are being crudely refined and sold to unsuspecting motorists. Poorly refined petroleum products from these illegal refineries had led to a lot of unquantifiable damage to vehicles and other household equipment.
We are worried that despite information at its disposal about the criminal activities of illegal oil bunkerers and thieves operating with foreign collaborators in the international waters, the administration has refused to act. We are also aware that government’s refusal to rein in these criminals who are sabotaging the nation’s economy might not be unconnected with the calibre of the people involved in the theft.
There have been reports of powerful government and military officials involved in this act of sabotage.
This blatant stealing of the nation’s crude oil cannot be allowed to continue. President Jonathan must demonstrate the necessary political will to fight this scourge and dislodge these economic saboteurs. All those involved in crude oil theft must be fished out and dealt with according to the law. There should be no untouchables.
The president should heed the alarm raised by Shell’s helmsman and stop the plundering of the nation’s resources.
President Jonathan must act decisively this time in the fight against oil thieves. Enough of verbal promises. What we want now is action.