Aiteo loses four million barrels of crude to thieves

The activities of oil thieves which assumed alarming proportions, have made Aiteo Eastern Exploration and Production, operators of OML 29, to lose about four million barrels of crude in 2019.

In dollar terms, the crude stolen is about $240m at an average price of $60 a barrel.

Mr Victor Okoronkwo, Managing Director of the oil firm spoke on the sidelines of the ongoing Practical Nigerian Content Exhibition and Conference with the theme, “Leveraging Local Expertise for Market Growth and Expansion’’.

Okoronkwo regretted that attacks by oil thieves on the 117-kilometre Nembe Creek Trunk Line, (NCTL) has adversely affected crude export from the oilfields in Bayelsa which had been shut for two months in 2019.

He regretted that despite the enormous investment in technology and security on the assets, the sabotage was yet to abate, adding that the development required a decisive action by all stakeholders.

He noted that the losses in oil output caused by oil theft were responsible for revenue shortfalls expected by the three tiers of government.

“One of the biggest challenges we face in our operations is the security of our pipelines and oil facilities.

“Our pipelines and flow-lines are constantly vandalized by unscrupulous elements tagged ‘crude oil thieves’ attempting to cause economic sabotage to our company and the people of this great country.

“Despite our efforts in raising NCTL uptime from 60 per cent to over 80 per cent since acquisition, we have recorded more shutdown days in operations due to third party infractions for over two months this year, compared to previous years.

“This has resulted in loss of revenue and deferments estimated at about 4 million barrels so far this year.