Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.