EnergyInsights.net 
Shell Nigeria loses 100,000 barrels of oil a day to theft 23-07-2011 9:52 pm

By Phaedra Friend Troy

According to a report from Dow Jones News, Royal Dutch Shell (NYSE:RDS-A, NYSE:RDS-B) is losing 100,000 barrels of oil a day to theft in the West African country of Nigeria. 

The estimated 100,000-barrel-of-oil-a-day loses are due to theft, also known as bunkering. 

Shell does not see an end to the theft, and says that the Nigerian government needs to stop the problem. 

“Ultimately the oil industry doesn’t have the capacity to police all our infrastructure, and it is the responsibility of the government to address this issue,” Dow Jones reported Shell executive Godson Njoku saying. “Only the government have the authority to provide adequate security to manage what is a terrible drain on Nigeria’s economy, as well as a source of major oil spills. 

Nigerian rebels frequently cause operators to declare force majeures on oil production in the country, due to theft, and pipeline and facility attacks. Main rebel group MEND, or the Movement for the Emancipation of the Niger Delta, regularly stalls development in the country in protest or to call attention to injustices. Kidnappings of oil workers are also rampant

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