oil theft2

Operators of marginal oil fields have decried the menace of oil theft and pipeline vandalism in Nigeria, which they said threaten the survival of their businesses, especially considering the size of their operations.

The operators, who spoke yesterday in Lagos at the pre–annual conference of the Nigerian Association of Petroleum Explorationists (NAPE ), said the seemingly intractable oil theft and vandalisation of pipeline is adversely affecting them.

The Managing Director of Energia Limited, Felix Amieyeofori , said his company has lost over $100 million (about N15.8 billion), this year alone to crude oil theft, while it lost over $72 million in 2012.

Energia Limited is the operator of Energia/Oando joint venture, owners of the Ebendo (Obodugwa/Obodeti ) marginal field in oil mining lease (OML) 56.

He said the continuous vandalism of export lines has been a major challenge because for every barrel of crude pumped through the lines, between 25 per cent and 30 per cent is lost before it gets to the terminal. “If we pump 3,500 barrels of crude oil and about 30 per cent is lost in the process through theft, it is a great loss especially as a marginal field operator,” he added.

The Managing Director of Waltersmith Petroman Oil Limited, Abdulrasaq Isa-Kutepa, also lamented the frequent shutdown of Shell’s Trans Niger Pipeline (TNP), the export line for crude produced from Waltersmith’s Ibigwe field located in OML 16 in Ohaji/Egbema Local Government Area of Imo State. The TNP takes crude to Bonny terminal for export.


[The Nation]