Oil theft: Shell mulls shutting Nembe Creek pipeline

Shell Petroleum Development Company has threatened to shut down its major trunk line in the Niger Delta following the continued attack on its facilities in the region.

Shell Managing Director and Country Chair, Mr. Mutiu Sunmonu, while speaking with reporters in Port Harcourt on Friday, said 60,000 barrels of crude oil were stolen from the firm's Nembe Creek trunk line daily in the last three years.

He noted that in February alone, the firm shut its 12 flow stations producing into the pipeline on three occasions due to oil theft.

He said, 'So, if you look at all of these, it is very clear to me that this is not just an act by desperate individuals trying to make a living. This certainly is a well-funded criminal activity, probably involving international syndicates.

'I really want to put it to you that we are in a crisis. We are in a crisis as a country because this is something which is beyond the capacity of any individual company or beyond the capacity of a country to solve. We really need concerted efforts nationally, locally and internationally to actually get this under control.

'My worry is not about the economy per se; the economy itself is huge, but I worry more about the devastation for the people of Niger Delta, the destruction it will cause to the social and environmental aspect of the people and to Nigeria.

'I cannot as the MD of SPDC in all good conscience, just continue to put my head in the sand. This is really getting to the crunch and rather than allow people to continue to attack the pipeline and devastate the environment, I may actually consider shutting in the pipeline completely.'

Commending the commitment of President Goodluck Jonathan and the Minister of Petroleum, Mrs. Diezani Alison-Madueke, towards tackling crude oil theft, Sunmonu described the recent upsurge in oil theft as a 'very dangerous phenomenon'.

He said, 'It is this whole NCTL area (Kakrama, Awoba); that is really where we have seen a lot of it (illegal bunkering). This is very serious. If you fly and you see how much oil is being thrown into the environment, you would understand the import of my statement.

'I am sure that some operators, who are on land and swamp are affected. I can tell you that. This (oil theft) is beyond communities; people, who carry out these things, are heavily armed.

'What type of collaboration with communities will help you against people carrying guns, people who are very well armed? That is the reality. You can't even put the poor boys in the communities at risk, you can't.'

He, however, urged the Joint Military Task Force officials to intensify their efforts toward eradicating illegal bunkering in the region.

Sunmonu noted that between July and December 2012, there was a significant drop for crude oil theft, adding however that the situation escalated between January and February 2013.

He said, 'That is a challenge for the JTF to also look into. I mean let us not underestimate the cleverness of the people, who are perpetrating this act. I have always said that with 6, 000-kilometre network of flow line and pipeline, even if you throw the entire Nigerian Army into the creeks, it is not going to solve the problem.

'So, I am sure these guys are monitoring what is going on; they are moving to areas of resistance. It is a combination of things, but certainly, we have seen that when the JTF really went after it, we got results.'