HomeBusiness NewsOil Thieves Make Billions of Naira on a Daily Basis While Oil...

Oil Thieves Make Billions of Naira on a Daily Basis While Oil Companies Are Steady Counting Losses

Due to the rising prices of oil in recent weeks, the rate of oil theft have drastically increased and owners of Oil and Gas companies refuse to remain silent.

Tony Elumelu, Chairman of United Bank for Africa (UBA) and Austin Avuru former CEO of Seplat Energy Plc have both raised an alarm concerning the amount of oil theft going on in the country recently. They claim that over 80% of Nigeria’s oil production are stolen before they get to the terminal.

The recent Oil and Gas report released by Nigeria Extractive Industries Transparency Initiative, (NEITI) revealed that over 270 million of Nigeria’s commercial crude oil production in four years (2016 and 2020) was worth $14.6 billion.

Breakdown of Stolen Oil (2016 to 2020)

The report states that a total of 39.162 million barrels of crude oil was lost in the year 2020. This is an average of 107, 293 barrels per day loss. With crude oil averaging $41.68 per barrel in 2020, it would mean the country lost at least $1.6 billion to crude oil theft and sabotage.

In 2019,42.25 million barrels was stolen by oil thieves, averaging 115,753 barrels daily loss. This would mean a loss of $2.7 billion with crude oil averaging $65.49 per barrel in 2019.

In 2018, Nigeria recorded a loss of 53.28 million barrels of crude oil, representing a daily average loss of 145,972 barrels per day. At an average crude oil price of $72.58 per barrel, it would mean that Nigeria lost $3.8 billion.

The losses recorded in 2017 was 36.46 million barrels of crude oil, meaning a daily average loss of 99,890 barrels. In 2017, crude oil averaged $54.32 dollars per barrel, by implication, Nigeria lost $1.9 billion to theft and sabotage.

The highest loss was recorded in 2016 with 101.6 million barrels of crude oil lost, this would mean every day in the year, the country lost 278, 356 barrels to theft and sabotage, and potential revenue of $4.6 billion was lost. Crude oil averaged $46.07 in 2016.

Losses by Oil Companies In 2020

Twenty-two companies suffered these losses with AITEO leading the pack with 2.8 million barrels lost, Belema Oil recorded a loss of 561,976 barrels while Waltersmt recorded the lowest loss with 442,084 barrels lost to theft and sabotage.

These two prominent individuals urge the Federal government of Nigeria to take necessary actions to put an end to oil theft in the country.



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