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Nigeria Loses $1.9bn Monthly To Oil Theft – Kyari

Nigeria is currently losing about $1.9 billion monthly to activities of oil vandals with its attendant effect on environmental degradation, the Group Chief Executive Officer of NNPC Limited, Mallam Mele Kyari, has said.

Kyari made the disclosure when a Federal Government delegation on anti-oil theft led by the Minister of State for Petroleum Resources, Chief Timipre Sylva, visited Delta state governor, Dr Ifeanyi Okowa, on Monday at Government House, Asaba.

According to him, “as a country, we hardly meet our OPEC production quantum of 1.99 million barrels per day with our current production level of 1.4 million barrels per day which is currently being threatened by the activities of these economic saboteurs.

“This has done extensive damage to the environment and losing $1.9 billion every month is colossal, considering the nature of the global economy at the moment,” he disclosed.

Kyari reiterated that the team needed the support and buy-in of the Delta Government “because stopping this oil theft requires the concerted efforts of the Federal, State Governments, oil companies and security agencies.”

Meanwhile, the Delta governor advocated a review of surveillance contracts on oil facilities to involve host communities to check the high rate of oil theft in the country.

Governor Okowa had told the delegation that reviewing oil surveillance contracts based on the performance of the contractors and engagement of host communities would ensure effectiveness in securing the nation’s oil and gas assets.

He admitted that the challenge of oil theft was huge given the level it had assumed but expressed happiness with the steps being taken by the authorities to curb the menace.

“I am glad that we are discussing this hydra-headed issue which impacts directly on our economy and the environment.

“Its impacts on the health of the people and sustainability of the environment and I am glad that we are taking some steps because there are so many issues that led us to this.

“We went through situations where gaps were created between host communities and oil companies, and unfortunately criminality set in.

“It has gone so bad but we are doing our best as a state. I am also glad about this collaboration,” he said and stressed the pertinence of a review of surveillance contracts of the oil facilities to ensure community involvement.

The governor pointed out that it was often difficult to secure the facilities, especially when the persons given the contracts did not have adequate information on the environment or did not have the buy-in of host communities.

“We know that the impact of the nefarious activities on the health of the people cannot be immediately ascertained, and this collaboration is, therefore, very imperative.

“Any measure that will deliberately reduce the level of oil thefts is worth supporting, and as a state government, we pledge our continued support.

“Why investment of the communities is needed is because there are some parts of the creeks that cannot be accessed by the surveillance contractor. Therefore, surveillance contracts should not be such that communities are not involved.

“The surveillance contracts should be tied to performance such that when there are oil thefts you terminate the contract and it is always good that communities are involved because they know the environment better,” he said.

Okowa flayed the oil companies for not keeping faith with their Memorandum of Understanding (MOUs), thereby making the stakeholders lose confidence in the system.

He explained that when oil companies failed to sign or implement MOUs, “it becomes very difficult for the state government to mediate when there are issues.

“The security agencies must heighten their operations and they need to be resourced to enable them to also increase their level of surveillance and for this to succeed, there must be sincerity on the part of all stakeholders.”

Earlier, Sylva had told the governor that the team was in Asaba to seek the support and buy-in of the state government on measures to be adopted to check oil theft, saying “as a country we cannot sustain this kind of theft perpetually.”

He said that oil theft had become a national emergency, especially as the nation had not been able to meet its OPEC production quota.

“Our production has dropped drastically to very unsustainable levels; so, we have decided to take the bull by the horn by putting some structures in place and those structures cannot function effectively without the collaboration of the state government,” the minister said.

Chief of Defence Staff, General Lucky Irabor, who is coordinating the security intervention against oil theft, disclosed that in the last five months, security agencies had been dealing with issues of illegal refineries and oil bunkering across the Niger Delta.

Culled from Tribune Newspaper

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