Illegal refining of crude oil in Nigeria, largely resulting from oil theft, is doing more harm to the nation than the export of the stolen oil, Mutiu Sunmonu, the country chair of Shell companies in Nigeria has said.
Industry stakeholders at the 11th Aret Adams Annual Lecture Series in Lagos on Thursday stressed the need for a comprehensive and integrated solution, involving all stakeholders including the host communities, to effectively tackle the menace of oil theft in the country.
Sunmonu, who is also the managing director, Shell Petroleum Development Company Limited (SPDC), while delivering a lecture at the event, said crude oil theft and illegal refining have blighted the Niger Delta, the heart of the nation’s oil and gas resources.
He said the oil theft is being carried out by well-financed and highly organised people as it takes organised and technical proficiency to conduct it at such a large scale seen in the country. “It is a tragedy and a major threat to Nigeria’s economic development and the environment.”
Sunmonu, who was represented by Philip Mshelbila, Shell regional communication manager, noted that the country still depends heavily on the oil industry, from which 80 percent of the government revenue and 95 percent foreign earnings are derived.
He added that 100,000 barrels per day, about 5 percent of total output in the first quarter of 2013, were reportedly stolen in onshore and swamp operations, most of which were shipped and sold in international market. “We are talking of billions of dollars that could have been used for the development of the country.”
He said roughly 70 percent of the oil stolen in the country is exported to other countries, adding that the impact of this on the economy is huge. “Though illegal refining is a small part of it, it has greater negative impact on the country, considering the environmental damage resulting from it and the huge impact on Nigerians.”
Femi ASu
