PRESIDENCY ACCUSES OIL MULTINATIONALS OF OIL THEFT

Presidency accused International oil companies in alleged involvement in oil theft in some oil-
producing communities. It called the international community to help resolve the problem, which
might threaten Nigerian economy. This statement was made by the Special Adviser to the
President on Niger Delta Affairs, Mr. Kingsley Kuku.
Kuku highlighted to steal crude oil from pipelines in the costal areas, one has to
posses advanced technical and mechanical skill - something that an ordinary
resident of an oil-producing community does not have:
"I know of one thing and this is the bombshell that there are workers in the oil and gas industry
who have the expertise, the technical know-how and knows about the ways and means of
sabotaging the oil and gas industry, who are likely to be involved."
He also hinted that notable personalities may be behind the theft of crude oil. However, her
absolved Niger Delta governors of being involved in this crime for the lack of evidence.
Kuku stressed that oil theft is an international crime and therefore urged the international
community to support the governments across the Gulf of Guinea instead of penalizing oil theft.
He then explained why he thinks the oil multinationals "must look inwards" their activities:
"This is critical and I know that a lot of multinationals will be angered by this, but their being
angry is not a bother to me.
"So you have a situation where some pipeline protection contractors empowered by the oil
companies participate in the theft.
"This is not about NNPC; not about PPMC. You know almost every oil company has pipeline
protection contract and pipeline surveillance contract for local security contractors.
"The same people, who are meant to be securing these pipelines participate in oil theft. So the
oil multinationals must look inwards at their contracting process, their procurement process,
look at the status of some of their vendors and security contractors, x-ray them, review their
processes very well and deal with the issue of oil theft as it affects participation in-house in the
oil and gas industry."
Mr Kuku said although Federal Government had "great steps" in halting oil theft, it still needed
the support of the international community to win the battle.
He went on saying that without international buyers there would be no local suppliers, what
would consequently lead to a decline in oil theft because the business will no longer be
profitable.
"The essence is not those who are involved here locally, but it is basically about those who
bring high quality funding for this crime and it is not a crime that is executed in terms of
implementation within our shores. It is off the Nigerian shores so they are either coming from
Europe or America. So there is need for the international community, other than creating
penalizing codes against oil theft as an international crime, to support us across the Gulf of
Guinea and other parts of our region - the Niger Delta in dealing with these crimes," Mr Kuku
claimed.
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Multinational oil firms, including Shell, Agip and Chevron have complained of increasing rate of
oil theft and sabotage of their facilities.
Nigeria is estimated to lose about $6 billion annually to oil theft.