Oil theft figures outrageous, unrealistic — Chief of Naval Staff

By Bisi Adewumi

The Chief of Naval Staff, Vice Admiral Awwal Gambo has said that there is a significant miscalculation in claims of how much Nigeria is losing in terms of oil theft as the figures  provided are outrageous and unrealistic.

The naval chief in a monitored programme on “Channels TV” stated that all other losses due to other factors are often lumped together as theft.

He lamented that most of the time these losses are blamed on security agencies’ lack of effectiveness.

In his explanation, he said, “We need to understand the differences between oil theft and oil losses.”

Oil theft according to him occurs when crude oil is siphoned through vandalised pipes into barges.

But, losses have to do with issues relating to production inadequacies, especially during shut-ins and force majeures, and the federal government does not earn the desired revenue.

Gambo stressed further that losses also occur as a result of metering errors on the operating platforms as read. The short-ins are often erroneously added to figures for oil theft instead of declaring them losses. He felt this should not be so.

He claimed that the alleged 20,000 and 200,000 barrels of crude oil daily stolen in Nigeria couldn’t be true as he explained that 100,000 barrels of crude translate to 15.8 million litres, which would require a five-ton to make 3,160 trips to convey to a mother vessel within a day.

The naval boss believed that even in a situation whereby there were enough barges to do these illicit deals, the heavy presence of security forces in the creeks and estuaries as well as the subsisting operations specifically targeted at this type of criminal activity would not allow it.

“Most of these claims are definitely outrageous and unrealistic,” he concluded.