Crude oil theft in Nigeria is an organized crime and should be differentiated completely from host community issues.
This is according to the Managing Director of Chevron Nigeria/Mid Africa Business Unit, Richard Kennedy who said this in a panel session held at the recently concluded NOG Conference in Abuja.
Mr. Kennedy made this remark when he was asked to comment on the host community provisions of the Petroleum Industry Act.
Mr. Kennedy emphasized the need not to confuse the agitations of host communities of oil-producing areas with the spate of crude oil theft being carried out in the area.
“From my experience, the issue with crude oil theft should not be confused with host community issues. It is much much much bigger than that. It is completely different from host community issues. Quite frankly it is organized crime.”
He also revealed that the level of theft is costing Nigeria millions of dollars daily in lost revenue which could have helped solve our fiscal challenges.
”You can see some of the figures in the press, maybe it’s about 100,000 barrels per day at $100 per barrel and that’s $10 million per day that is being stole. And NNPC owns 60% while taxes of 85% are reimburse so it’s a huge loss for the country.”