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SPDC JV loses N3.34bn to oil theft

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SPDC JV loses N3.34bn to oil theft

By Yunus Yusuf

Mr Osagie Okunbor, Country Chair of Shell Companies in Nigeria, on Tuesday said that Shell Petroleum Development Company Joint Venture (SPDC JV) might have lost N3.34 billion to crude oil theft and pipeline vandalism in 2016 alone.

Okunbor announced this on the side-line on a review of Shell operations in Nigeria for 2016 while presenting the 2017 Shell Nigeria briefing notes in Lagos.

He said that Shell JV lost over 5,660 barrels of crude oil per day in 2016 to crude theft and pipelines vandalism.

The SPDC boss said that the number of sabotage-related spills declined to 45, compared with 93 in 2015.

According to him, at an average crude price of 45  dollars per barrel in 2016, the JV might have lost N3.348 billion, equivalent of 2,065,900 barrels in 2016 at an exchange rate of N360/dollar.

“The 5,660 bpd lost to crude oil theft and pipeline vandalism was a significant achievement when compared to a loss of 25,000 bpd in 2015.

“The reduction in oil theft and sabotage-related spills from the previous year can be attributed to continued improvements in air and ground surveillance and response by government security forces.

He said that the companies would continue to work with the government and other key stakeholders on the security challenges in its operating environment.

“We look towards sustained and fruitful operations for the benefit of the Nigerian state and all other shareholders.

“Shell has been operating in Nigeria for more than 50 years and it is not by chance that we have remained deeply committed to the development of Nigeria.

“We are responsibly producing oil and gas in onshore and offshore as well as distributing gas to industries and producing liquefied natural gas for export,” he said.

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