The General Manager of Shell Petroleum Development Company of Nigeria,(SPDC) Mr Igo Welli, has identified crude oil theft, pipeline vandalism and illegal refineries as the bane of Nigeria’s development.
As a result of this, Welli disclosed that the company may shut its production in the country.
He said this during a one day engagement with media professionals from Imo and Abia states on Saturday, noting that the country had not benefited from the recent hikes in oil price as a result of this.
He listed some of the problems arising from the issues to include exorbitant foreign exchange rates, unemployment and poor infrastructure.
He added that a large percentage of the national budget is diverted to cleanups targeted at reducing the effects of oil spillage occasioned by pipeline vandalisation.
The general manager warned that the issues could lead to the company’s withdrawal from the country as their productivity and profits have been limited by crude theft and illegal refineries.
“The issue of illegal refineries, crude oil theft and pipeline vandalism has resulted in pipeline leaks which lead to a shutdown of our facilities to reduce impact on the environment.
“The oil bunkering has equally put the lives of our staff at risk and projects which pose threats to our staff have been paused, our productivity and profits have been limited as a result.
“This means Nigeria has not benefited from the hike in oil prices because the benefits are hijacked through crude theft and vandalism which is the main reason for the issues facing the country,” he said.
He therefore called for improved security presence and coverage in the project areas to limit bunkering activity and the need to chart a new way for improved productivity.
Welli equally called for sustained government participation and support for project delivery.
Also speaking during the programme, the Remediation Lead, Ivan Okoye, said the country had lost at least $1billion in revenue in the first quarter of the year.
While speaking on the implications of crude theft and illegal refineries on the environment, Okoye stated that there are at least 150 oil bunkers in Ohaji Egbema in Imo State.
He added that as a result of the activities at these bunkers, the company is constantly engaged in removal of contaminants from the soil and water.