Oil theft costs Nigeria USD 1.2 billion

Nigeria has lost about USD 1.2 billion of oil revenue in a single month of the first quarter of 2013 over oil theft.(file photo)

Oil theft has caused Nigeria to lose about USD 1.2 billion of oil revenue in a single month in the first quarter of 2013, Nigerian officials have said.

“[Considering] At average January-March prices of USD 121 per barrel, this theft resulted in a loss of USD 1.2bn to Nigeria in one month alone,” Kingsley Kuku, the special adviser to President Goodluck Jonathan on oil-rich Niger Delta stated on Tuesday.

According to official figures, the trade of stolen oil has caused the African country a 17 percent fall in oil sales in the first quarter of 2013, which has been estimated as 400,000 barrels per day, Kuku said in a statement.

Kuku went on to explain that the thieves tap oil pipelines to siphon crude, which often causes heavy damage such as explosion, fires and oil pollution.

In July, the International Energy Agency announced that stealing oil from Nigeriaâ„¢s pipelines has inflicted a dramatic plunge in the output made by the Organization of the Petroleum Exporting Countries (OPEC), of which Nigeria is a member.

The Africaâ„¢s largest oil producer, which generates around 2 million barrels of oil, loses about USD 6 billion of its revenue each year, because of oil theft.

In the meantime, the Royal Dutch Shell subsidiary, Shell Petroleum Development Company (SPDC), has recently closed its Nembe Creek Trunkline in Bayelsa State, southern Nigeria which was damaged during oil robbery.

The lineâ„¢s temporary shutdown has cost the country and the company a dear, which is estimated to be about 150,000 barrel per day, the Nigerian official reported.

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Republished from: Press TV