Posted on September 11, 2019 by Ilias Kiritsis
Shell’s Nigerian subsidiary, Shell Petroleum Development Company of Nigeria (SPDC) has issued a statement saying that they lose approximately $560,000 daily in revenue to criminal activities in the Niger Delta.
This announcement was made by the general manager of SPDC, Igo Weli during a workshop on pipeline vandalism that took place in Port Harcourt on September the 9th.
“These attacks were on critical assets that produce crude oil, which accounts for over 90% of Nigeria’s foreign exchange earnings and the bulk of government revenue. We are concerned about the lives and safety of those involved in pipeline vandalism and crude oil theft as well as the environment.
"SPDC puts safety first and have constantly made appeals to those involved to stop destroying their lands and heritage from the spills and pollution arising from their activities. We are calling on government, communities and other stakeholders to stem the incessant attack on our oil assets in the Niger Delta," said Mr. Weli in his statement.
SPDC, which is a joint venture between Shell and the Nigerian government, has made sure to put money back into the local communities, in an effort to develop the surrounding area, but so far these efforts have met with limited success.
“There is a community in the Niger Delta that has received over 2bn naira ($5.5m, £4.5m) from SPDC joint venture for its development but is yet to develop.”
“The region receives 13% derivation, revenue from NDDC [the Niger Delta Development Commission government agency] and funds from companies, but still has not developed.
“The Niger Delta has refused to develop despite the huge monies allocated to the area. So, we need to ask ourselves the critical questions to change the Niger Delta narratives,” Mr Weli has been quoted as saying.
According to the figures released, SPDC has been losing over 11,000 barrels of crude oil in the Niger Delta region to theft on a daily basis.
These figures, which are from 2018 showcase a direct and clear increase in oil theft over the last year. Back in 2017, SPDC was losing approximately 9,000 barrels a day.
In its monthly report on the month of June, The Nigerian National Petroleum Corporation revealed that there was a 77% increase in oil pipeline vandalism. Specifically, the report states that 106 breaches had been recorded in the month of June, up from 60 in May.