Shell demands Nigeria do more to stop rising oil theft

Royal Dutch Shell has called on the Nigerian government to do more to stop the “unprecedented” level of theft from its pipelines in the troubled African country. As more oil is pillaged, there is a growing threat of an environmental disaster in Nigeria, Shell said in its annual sustainability report. More than 90pc of the oil spilled last year from its pipelines and other operations in Nigeria was the result of sabotage, the company claimed yesterday. “We urgently need more assistance from the Nigerian government and its security forces,” said Mutiu Sunmonu, chairman of Shell Nigeria. 

Shell is one of a handful of major western oil companies, which include America’s ExxonMobil and Chevron, France’s Total and Italy’s Eni, responsible for pumping about 90pc of the country’s crude. The position of Western oil companies in Nigeria has long been controversial and the government is trying to increase the share it takes of the profits foreign companies generate there. Nigeria is the world’s 12th largest oil producer and Africa’s largest, according to the US Energy Information Administration. In a strongly-worded attack, Mr Sunmonu said: “It’s clear that a well-financed and highly organised criminal enterprise exists on a phenomenal scale – a parallel industry with a supply chain to export crude oil overseas that includes loading and shipping operations”.Last month Shell said it was forced to close the Nembe Creek oil pipeline, which carries about 150,000 barrels a day, to clear away oil split following a theft. About 26,000 barrels were spilt last year, Shell said, adding that theft or attempted theft was behind 85pc of the spills in the country over the last three years. Production at its Nigerian facilities fell 20pc last year because of the persistent need to close pipelines for repairs, Shell said. While Nigeria has historically been a troubled region for Shell, it is the company’s problems exploring off Alaska that have drawn more scrutiny in the past 12 months. Shell remains under investigation by US authorities following a series of mishaps in the Arctic, including the grounding at the start of the year of its Kulluk oil rig. An investigation by the US Coast Guard found that Shell’s other rig in the region had safety problems.However, Shell used the sustainability report to insist that it will persevere with its $5bn [£3.3bn] plan to drill. “We must not forget that the industry has been conducting safe operations in the Arctic for decades,” the report said.