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Shell loses $560,000 daily to Oil Thieves in Nigeria

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Igo Weli, the General Manager of the Shell Petroleum Development Company of Nigeria (SPDC), has made an announcement stating how the oil giant loses 10,000 barrels of oil daily to Nigerian thieves. The Shell Development Company of Nigeria (SPDC) is a joint venture between the Nigerian government and Shell

This loss costs the Oil Giant $560,000 about £452,000 daily. These losses are equivalent to $204.4m over the period of one year.

Speaking on Pipeline Vandalism at a workshop in the oil-producing city of Port-Harcourt, Mr. Igo Weli was quoted saying “These attacks were on critical assets that produce the crude oil, which accounts for over 90% of Nigeria’s foreign exchange earnings and the bulk of government revenue”

Furthermore, he disclosed how the company removed 1,160 points through which oil vandals stole oil since 2012. 

READ ALSO: NNPC partners with Shell to grow oil reserves

However, the removal of these vandalism points has done nothing to stop the problem as  9000 barrels were stolen in 2017, 11,000 oil barrels stolen last year and as of this year, 10,000 barrels of oil have been stolen so far.

Mr. Weli also noted how the Niger Delta region has yet to develop despite the huge monies allocated to the area.

News reporters quoted Weli’s saying “There is a community in Niger Delta, that received over #2 billion from SPDC for its development, but is yet to develop. The region receives 12 percent derivation, revenue from NDDC and funds from companies, but still has not developed.”.

 

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