Elumelu, who is also the chairman of Heirs Oil and Gas, blamed the shortfall in Nigeria’s daily oil production quota on the inability of the security agencies to protect oil installations in the Niger Delta. “Look at the Bonny Terminal that should be receiving over 200,000 barrels of crude oil daily, instead it receives less than 3,000 barrels, leading the operator Shell to declare force majeure.
Already, the NNPC, has strengthened its collaboration with the Joint Security Task Force and other stakeholders. This effort received a major boost during the week when President Muhammadu Buhari mandated the Minister of State, Petroleum Resources, Mr. Timipre Sylva, the NNPC boss Mallam Mele Kyari as well as the Chief of Defence Staff, Gen. Lucky Irabor to assess the level of oil theft in the Niger Delta.
Avuru, revealed that up to 80 per cent of oil pumped in the country, particularly in the East, is stolen, further corroborating comments by Elumelu, who had equally bemoaned the worsening state of the industry, stressing that about 95 per cent of oil production does not get to the terminal. “The problem of security has come to the attention of the president and Mr. President has directed myself and the CDS and the GMD to ensure that this problem is handled once and for all,” the minister said.
“All the elements are complete now. We are here as government, the operating companies are here and of course we are going to the communities. So, I believe that finally, this problem will be resolved. Kyari noted that the government would leave no stone unturned to arrest the increasing spate of oil theft and destruction of the environment which had cost the country foreign exchange earnings.
He commended the security team in the effort to stop denying the country the much needed resources for economic development. The Federal Government through its Nigerian Upstream Petroleum Regulatory Commission, met with the Oil Producers Trade Section, as well as the Independent Petroleum Producers Group in Abuja at a stakeholders’ engagement on crude oil theft.
“Average monthly value loss for the period is about $233.99m. Average daily value loss for the period is about $7.72m.” Kennedy, who was represented by the Managing Director, ExxonMobil Nigeria, Richard Laing, said, “When I say it is an organised criminality, the sophistication of the engineering involved points towards a high degree of sophistication and technology, as well as the distribution.The IOCs called for a quick solution to the menace, stressing that the development posed a serious threat to their existence.
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