Is Crude Oil Theft Decreasing in Nigeria?

Written by on May 10, 2013 in Featured on App, National Companies, Oil with 0 Comments

oil barrels

It seems that the level of crude oil theft from western oil companies' pipelines in Nigeria is decreasing thanks to Nigerian government intervention.

At the beginning of the year, Shell urgently asked Nigeria to increase security forces to stop growing oil theft and threatened to stop its operations in the country if measures were not taken. Crude oil theft already caused the company revenue losses of $10billion per year (Vanguard).

Vanguard reports that the Country Chair, Shell Companies in Nigeria, Mr. Mutiu Sunmonu said ‘we are seeing progress, but like I tell you, this is a very big operation, so I am not expecting solution over night, but what I am expecting is that government security agencies will really keep at what they are doing now. If they keep at it for a while, I am sure we will begin to see a significant reduction.'

According to the US Energy Information Administration, Nigeria is the 12th biggest oil producing country in the world and the largest oil producer in Africa. Nigeria is a profitable oil area for many western oil companies such as Eni, Total, Chevron and as mentioned Shell. However, this is a trouble region for oil players due to criminal parallel organizations, oil theft and consequently frequent closures to repair oil facilities.

Will Nigerian government manage to prevent oil theft?

Let us know your thoughts below.

If you'd like to further discuss oil in Africa, why not attend our World National Oil Companies Congress in London.

Keep up to date with World Oil and Gas and subscribe to the newsletter here.

WNOCC-EU-2013-Web-Banner-640-105

Tags: , , , ,

About the Author

About the Author: The global energy sector is going through such a challenging period at the moment. That’s why it is so interesting writing about key trends, developments, issues and the companies having a big impact on the sector. You will find me writing for The Oil and Gas Post and Shale World. Let me know if you’d like news in Italian or Spanish too! .

Subscribe

If you enjoyed this article, subscribe now to receive more just like it.

Subscribe via RSS Feed Connect on Google Plus Join Our LinkedIn Group Connect on YouTube

Leave a Reply

Your email address will not be published. Required fields are marked *

Top
Geolocation