Shell says Nigeria loses 5bn dollars to oil theft annually

Mr Mutiu Sumonu, the Managing Director of Shell Petroleum Development Company Nigeria Plc., said on Tuesday, in Abuja, that Nigeria was losing 5 billion dollars annually to oil theft.
Sumonu spoke at the public hearing on the upsurge of illegal oil bunkering activities in Nigeria’s coastal region.
The hearing was organised by the House of Representatives Joint Committee on Petroleum Resources (Upstream) and Navy.
According to him, Nigeria loses approximately 150,000 barrels of oil to illegal oil bunkering daily, while the company lost100 barrels daily between 2003 and 2004.
Heexplained that the activities of oil thieves had shifted from pilfering to a higher dimension.
The shell boss said that stakeholders in the oil sector must display the political will to fight illegal oil bunkering.
“Every tier of government must be involved in the fight against illegal oil bunkering,”he said.
Sumonu described illegal oil bunkering as a highly syndicated operation that involved oil company workers.
The Speaker of the House of Representatives, Alhaji Aminu Tambuwal, gave an assurance that the National Assembly (NASS) would continue to support the committee in checking illegal oil bunkering.
Tambuwalsaid that the NASS was ready to respond to the enormous challenge of checking illegal bunkering.
“The House of Representatives will respond to this kind of challenge for the well-being of the country,” he said.
The speaker noted that the activities of oil thieves constituted threats to the nation’s security and environment.
Mr Ade Abolurin, Commandant-General of the Nigeria Security and Civil Defence Corps (NSCDC), said that the corps was ill equipped to effectively check illegal oil bunkering.
He said that the corps had arrested and prosecuted 300 Nigerians and 15 Ghanaians for illegal oil bunkering.
Abolurin stressed that the corps would not compromise its position in checking the activities of oil thieves.
The NSCDC boss urged effective implementation of extant laws checking illegal oil bunkering.
He called on the committee to help the corps to acquire state of the art equipment to enable it to effectively check oil theft in the country.
Rep. Muraina Ajibola (PDP-Oyo), the Chairman of the House Committee on Petroleum Resources (Upstream), urged the strengthening of relevant institutions by allocating more funds to them to purchase equipment.
Ajibola said that the Nigeria Maritime Administration and Safety Agency (NIMASA) needed to step up its operations to check maritime theft.