Nigeria is losing a minimum of $5b annually to crude oil theft, the Managing Director of Shell Petroleum Development Company, Mr. Mutiu Sunmonu has said.
Sunmonu disclosed this on Wednesday during a visit to the Nigeria Extractive Industries Transparency Initiative (NEITI) headquarters in Abuja.He said there was need for NEITI to device ways of stopping the menace otherwise the Federal Government’s revenue from the oil and gas sector would continue to decline.
His words: “Our greatest challenge is about criminal activities where people steal crude everyday. Nigeria is losing at least five billion dollars every year as a result of criminals stealing our crude and exporting it illegally. That is what I believe we need to worry about.
“If you don’t stop this, I can guarantee you that the revenue from oil business to the government in particular, will continue to dwindle,” the Shell MD added.
“If you don’t stop this, I can guarantee you that the revenue from oil business to the government in particular, will continue to dwindle,” the Shell MD added.
Commenting on issues regarding the amounts of crude oil that is being produced and exported out of the country, Sunmonu said the practices have a universal standard.
He noted that aside from adhering to the nation’s regulatory frameworks, the oil companies could be liable to international sanctions if they commit misdeeds.
He noted that aside from adhering to the nation’s regulatory frameworks, the oil companies could be liable to international sanctions if they commit misdeeds.
“I want to state here categorically that the oil business is an international business. The practices on how you account for what you produced and what you sell is universal. The companies in this business are very big companies. The code of conduct that governs their activity is strict that they cannot afford to play games.
“Nigeria as a country has put its own regulatory framework around how you account for what is produced and what is loaded. At the port of loading, there are security agencies present there.
"There are naval officers, customs officers and there are meters which measure what goes from your tank to the tankers and reconciliations are done on both sides. It is a very well controlled operation but a lot of people always believe that there must be game going on,” he said.
"There are naval officers, customs officers and there are meters which measure what goes from your tank to the tankers and reconciliations are done on both sides. It is a very well controlled operation but a lot of people always believe that there must be game going on,” he said.
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