Shell links fall of Naira on Oil theft, loss revenue

*If not checked, about 50 percent of annual budget will be for cleaning polluted sites

Daniel Efe /Port Harcourt

Shell Development Company of (SPDC) Nigeria has raised alarm that the continuous free fall of Naira against the Dollar and our inability to pay our huge foreign debt can be linked to the dwindling revenue caused by Crude Oil theft.

The Country Head/Director of Corporate Relations of SPDC, Igo Weli,  disclosed this in Port Harcourt during an engagement with the Journalists today, Tuesday, August 2, identified crude oil theft, pipeline vandalism and illegal refineries as the bane of Nigeria’s development.

Weli disclosed that as long as there is dwindling revenue due to shutdown of various operational facilities by the International Oil Companies, IOCs, because of pipeline vandalism,crude oil theft and illegal refining the nation will continue to lose revenue usually in foreign currencies to firm up the Naira.

He also regretted that that the country had not been able to benefit  from the recent hikes in Crude oil price in the international market in war between Ukraine and Russia.

Weli also listed some of the problems arising from the alarming crude oil theft to include; high  foreign exchange rates, unemployment, damaged environment 

He disclosed the Trans-Niger Pipeline, a major pipeline capable of transporting about 180,000 barrels of crude per day, has been moribund since March 2022 due to theft.

According to him” At a point it didn’t make a lot sense for Shell to continue to pump Crude in the Trans Niger Pipeline.”

On the allegation that some Shell staff may be in cohort with the oil thieves,he said” There has no been any impediment in way of law enforcement agencies from arresting and prosecuting anybody including members of Staff found culpable”

He went further to state the despite the company has operations in over 70 countries, it perhaps only Nigeria that where the Company spend so much revenue to construct wellhead Cages to protect them from vandals and oil thieves.

The Country Head/Director of Corporate Relations of SPDC, l Weli, as part of precautionary measures to secure their facilities,contract to use drones for surveillance of the pipelines also at a huge cost to the Joint Venture.

He warned that if the Crude oil theft that has taken a worrisome dimension in Nigeria continues the about 50 percentage of nations budget will be used  for cleaning the impacted and fixing the damaged facilities.

He commended the efforts of the Rivers State Government, Nyesom Wike,who showed leadership in fight against the activities of illegal crude oil thieves and asked for it’s  sustenance in all the areas of  operation by governments at all levels.

“The oil bunkering has equally put the lives of our staff at risk and projects which pose threats to our staff have been paused, our productivity and profits have been limited as a result.

He, therefore, called for improved security presence and coverage in the project areas to limit bunkering activity and the need to chart a new way for improved productivity.

Weli equally called for sustained government participation and support for project delivery.

He added that as a result of the activities at these bunkers, there have been deaths of persons at sites illegal oil bunkering sites like the ones that happened at Ohaji/Egbema in Imo State,  Obigbo, Oyigbo local government area of Rivers State.