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Tuesday, 10 December 2019

Obaseki Laments Oil Theft Losses, Urges FG to Take over Trunk Lines from IOCs


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Edo State Governor, Godwin Obaseki, has decried Nigerian huge losses to oil theft, calling on the federal  government to temporarily take over the trunk lines operated by international oil companies
(IOCs),from where most of the breaches reportedly occur.

He regretted that in spite of oil theft with the attendant huge revenue losses, pipelines vandalism and the associated environmental degradation, no one has been held accountable.

Speaking  in Abuja on Tuesday at the inaugural policy dialogue organised by the Nigeria Extractive Industries Transparency Initiative (NEITI), Obaseki , who chairs a committee set up by the National
Economic Council (NEC) to explore a workable solution to the challenge of oil theft in the country, revealed that 22 million barrels of oil valued at $1.35 billion were lost to thieves in the first six months
of this year.

Most of the crude oil losses, he said, were recorded on trunk lines operated by companies which own production fields and the pipelines, a situation he described as disturbing.

Noting that the trunk lines outsourced to third parties recorded the least breeches, he called on the federal  government to temporary take over the trunk lines operated by the IOCs.

Obaseki stated: “Some of our key findings, for the first half of this year, we lost 22.6 million barrels of crude oil at an estimated cost of about $1.3 billion but these losses occurred specifically in the
Nembe trunk line, we lost 9.2 million barrels; in the Trans Niger pipeline we lost 8.6 million barrels; and in the Trans Forcados
pipeline 3.9 barrels.

 “What is interesting is that the largest losses came from lines that were owned and operated by the same companies who explored, who had production and owned the transportation of the lines recorded those
losses.


“We also noticed that the lines that were outsourced to third parties recorded the least losses so there is a very interesting correlation between the ownership production into the lines and the level of
losses on those lines.”

Nigeria was recently reported to have lost about $41.9 billion through
oil theft
and pipeline vandalism in ten years,  with the attendant impact on  revenue and
environmental degradation.


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