Shell links fall in Nigeria’s revenue, value of naira to oil theft

By Okafor Ofiebor/Port Harcourt

Shell Petroleum Development Company of (SPDC) has linked continuous fall in the value of the naira against the dollar and Nigeria’s inability to pay her huge debt to ongoing massive crude oil theft in the Niger Delta.

The Country Head/Director of Corporate Relations, SPDC, Igo Weli who disclosed this in Port Harcourt during an engagement with the journalists on Tuesday identified crude oil theft, pipeline vandalism and illegal refineries as the bane of Nigeria’s development.

Weli said as long as there is dwindling revenue due to shutdown of various operational facilities by the International Oil Companies,IOCs, because of pipeline vandalism, crude oil theft and illegal refining, Nigeria will continue to lose revenue, especially, foreign currencies needed to firm up the naira.

He also noted that that the country had not been able to benefit from the recent hikes in crude oil prices in the international market in war between Ukraine and Russia due to this negative phenomenon.

He listed other problems arising from the alarming crude oil theft to include unemployment and damaged environment

He disclosed Trans-Niger Pipeline, a major pipeline capable of transporting about 180,000 barrels of crude per day, has been moribund since March 2022 due to oil theft.

On the allegation that some Shell staff may be in cohort with the oil thieves, he said, “There has no been any impediment in way of law enforcement agencies from arresting and prosecuting anybody including members of Staff found culpable”

He added that the company has operations in over 70 countries, but it is only Nigeria where it is spending so much revenue to construct wellhead cages to protect them from vandals and oil thieves.

Weli added that as part of precautionary measures to secure its facilities, SPDC has also embarked on use of drones for surveillance of the pipelines at a huge cost to the Joint Venture.

He warned that if crude oil theft continues in the present worrisome dimension, Nigeria may spend about 50 percent of her budget for cleaning of impacted communities and fixing the damaged facilities.

Weli commended Rivers State Governor, Nyesom Wike, for showing leadership in the fight against the activities of crude oil thieves.

“Oil bunkering has equally put the lives of our staff at risk and projects which pose threats to our staff have been paused, our productivity and profits have been limited as a result,” he said.

He, therefore, called for improved security presence and coverage in the project areas to limit bunkering activity and the need to chart a new way for improved productivity.

Weli equally called for sustained government participation and support for project delivery.

He added that as a result of the activities at these bunkers, there have been deaths of persons at sites of illegal oil bunkering sites like Ohaji/Egbema in Imo State and Obigbo in Oyigbo local government area of Rivers State.