Oil theft in Nigeria, a growing curse of recent years, has now reached an industrial scale with at least 50,000 barrels per day and possibly up to 250,000 b/d skimmed off the national production.
The higher volume is valued at $25 million per day or $9 billion per year, is disrupting official oil production and polluting the environment.
The Nigerian government is asking for international help to fight theft but has otherwise taken few steps to stop the rot.
A report of the UK think-tank Chattam House says there are three ways oil is being stolen.
In its simplest form, thieves punch holes in pipelines with crude oil and refine that oil in “bush” refineries. Though primitive and dangerous, this process delivers usable fuels such as diesel. This fuel is mostly used locally.
Larger volumes are believed to be taken by diverting crude flows into barges, mostly in the Niger Delta, and from there to larger tankers for sales overseas.
The most sophisticated way of theft is taking place at the same loading terminals that are exporting official oil volumes. The report says that officials from state customs, the state Nigerian National Petroleum Corporation (NNPC) and international oil companies could be colluding, allowing tankers to be filled up with more oil than officially reporte.
The report implies that stealing oil at an industrial scale can only happen with the consent of top officials. And they would only allow it to happen since they financially benefit.
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