Oil theft cost Nigeria 22 million barrels in first half -NNPC

Published 30/08/2019, 14:22
© Reuters.  Oil theft cost Nigeria 22 million barrels in first half -NNPC

LAGOS, Aug 30 (Reuters) - Nigeria lost as much as 22 million

barrels of oil to theft in the first half of this year, a

problem that is a threat to the country's economy, state oil

company NNPC said.

The stolen oil amounts to more than 120,000 barrels per day

(bpd), or roughly 6% of Nigeria's nearly 2 million bpd output.

Oil accounts brings in 90% of Nigeria's foreign exchange and

the bulk of government revenue. But the oil pipelines that snake

through the swampy, oil-rich Niger Delta region are targets for

theft and sabotage.

Godwin Obaseki, the governor of Edo state and chairman of

the ad-hoc Committee of the National Economic Council on Crude

Oil Theft, Prevention and Control, said the 22 million barrel

figure could double by the end of the year if nothing was done

to combat theft.

In its June monthly report, NNPC said there was a 77% rise

in oil pipeline vandalism. That report noted 106 pipeline

breaches in June, up from just 60 in May.

Many of the breaches are points where thieves can off siphon

oil and either sell it illegally or refine it in so-called

artisanal refineries that are often little more than drums

boiling oil into rudimentary fuels.

NNPC spokesman Ndu Ughamadu said the government was looking

at the problem, but did not specify what actions were expected

to combat it.

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