Managing Director of Chevron Nigeria/Mid Africa Business Unit, Richard Kennedy has said that crude oil theft in Nigeria is an organized crime.
He said during a panel session held at the recently concluded NOG Conference in Abuja that crude oil theft should be differentiated completely from host community issues.
Kennedy also 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 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.
“The volume of crude that is being stolen is well beyond comprehension. 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 stolen. And NNPC owns 60% while taxes of 85% are paid so it’s a huge loss for the country, he added.