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 â€˜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?
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