The Nigerian National Petroleum Company (NNPC) Ltd has reported a total of 400 incidents of crude oil theft in just one week, deepening the challenges facing Nigeria’s oil sector, including declining production and dwindling investment.
The rise in theft incidents compounds the ongoing security issues plaguing the oil and gas industry, which not only results in financial losses but also undermines the country’s efforts to attract investment and increase production.
Crude oil theft in the Niger Delta has led to the destruction of the region’s natural ecosystem, reduced federal government revenues, and divestment from onshore fields by international oil companies (IOCs).
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According to the Organisation of Petroleum Exporting Countries (OPEC) monthly oil market report, Nigeria has consistently failed to achieve its OPEC+ oil production quota of 1.5 million barrels per day. In May, OPEC reported that crude oil production dropped to 1.25 million barrels per day.
According to the company’s weekly program, “Energy and You,” the incidents included illegal refineries, unauthorized connections, vandalism, oil spills, and illicit storage sites, among other issues.
In a breakdown of the incidents, the company stated that there were 165 cases of illegal refineries, 69 cases of illegal connection, 15 cases of vandalism, 8 incidences of oil spill, 19 cases of illegal storage location, 74 cases of vessel AIS infraction etc. between 15th and 21st of June 2024.
NNPC reported that the bulk of the 400 incidences recorded during the week occurred in the Western region of Rivers and Bayelsa states with 265 incidences, deep blue waters off the coast of the Niger Delta recorded 74 incidences while the Eastern region recorded around 65 incidences and the Western Niger Delta recorded around 26 cases which mainly occurred in Delta state.
The company stated that the incidents were reported by different companies and security agencies across the Niger Delta including Tantitta Security Ltd, Pipeline Infrastructure Nigeria Limited (PINL), SPDC, NNPC Command and Control Centre, Maton Engineering, government security agencies among others.
NNPCL revealed that during the period under review, about 8 suspects were arrested by security agencies and stakeholders in the oil and gas industry.
