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Tackle security of oil infrastructures to avert doom – IOC tells Tinubu

The incoming government led by president-elect, Bola Ahmed Tinubu has been urged to focus on fixing oil and gas security to avert total co...


The incoming government led by president-elect, Bola Ahmed Tinubu has been urged to focus on fixing oil and gas security to avert total collapse of Nigeria’s economy.


Dr Osagie Okubor, Chairman of Shell Companies in Nigeria, disclosed this recently at the just concluded Nigeria International Energy Summit in Abuja.


He lamented that vandalism had heavily affected the nation’s oil and gas production capacity.


Accordingly, the country continued to produce crude and gas below capacity due to damage vandals had done to pipelines in the Niger Delta region.


He said the country had lost N2.3 trillion in oil revenue if the prevailing $83 per barrel rate was used.


The amount translates to about 65, 700, 000 crude Brent loss to vandalism and oil theft in under one year.


He cited the example of TNP, a Joint Venture operated by SPDC, which is a major pipeline capable of transporting about 180,000 barrels of crude per day to the Bonny export terminal.


Okunbor added that the TNP was shut down for a year due to oil theft but was reopened for operations after over 460 illegal connections were discovered by the company.


“So, if you ask me what the number one issue has to be for the incoming administration, it has to be the security of oil and gas infrastructure. If you don’t fix it, we have a huge problem,” Okunbor said.



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