Oil theft claims outrageous, says Navy chief

Awwal Gambo
Awwal Gambo, Chief of Naval Employees

Nearly all of claims about oil theft are outrageous and unrealistic as different components are accountable for oil losses in Nigeria, Awwal Gambo, Chief of Naval Employees, mentioned on Wednesday.

“We have to distinguish between oil theft and oil losses,” he mentioned throughout a programme on Channels Tv.

“Whereas oil theft entails siphoning crude oil from vandalised pipelines into barges, oil losses happen when there’s recognized manufacturing, significantly throughout shut-ins and drive majeures, as a result of the Federal Authorities doesn’t earn the income it ought to,” Gambo mentioned.

Gambo added that “losses additionally happen on account of metering errors on the working platforms as learn. However the quantity of crude oil shot-ins from non-production is commonly added to figures for oil theft as a substitute of declaring them as oil losses. This shouldn’t be.”

Nigeria has 36 billion barrels of crude oil reserves and 206 trillion cubic toes of confirmed fuel reserves, however funding within the important oil sector has declined dramatically lately.

Learn additionally: Peter Obi desires Nigerians linked to grease theft punished

For a few years, crude theft and pipeline vandalism have plagued the sector, forcing worldwide oil firms working within the nation to promote a few of their onshore belongings.

Crude oil manufacturing in Nigeria has plunged to its lowest in many years amid rising oil theft and pipeline vandalism, resulting in the lack of its standing as Africa’s prime producer to Angola in Could. The nation produced 1.08 million barrels per day (bpd) of oil in July, down from 1.39 million bpd firstly of the yr.

Gambo, in reference to experiences that between 20,000 and 200,000 barrels of crude oil are stolen every day in Nigeria, mentioned 100,000 barrels of crude oil is the equal of 15.8 million litres of crude oil, which might require a five-tonne barge to make 3,160 journeys to convey to a mom vessel inside a day.

“Nearly all of these claims are clearly outrageous and unrealistic,” he added. “Even when there have been sufficient barges, it’s extremely unlikely given the elevated presence of safety forces within the creeks and estuaries, in addition to the continuing operations particularly focusing on one of these prison exercise.”

Megamillions

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