Oil Theft Drives International Oil Companies Out of Nigeria, Says Businessman Tony Elumelu
A leading Nigerian businessman, Tony Elumelu, has attributed the divestment of International Oil Companies (IOCs) from Nigeria to the rampant oil theft in the country. In an interview with the Financial Times, Elumelu lamented that oil thieves still pilfer 18% of crude from his field daily, despite the government’s inability to apprehend the culprits.
This revelation comes on the heels of IOCs’ decision to divest their interests in Nigeria, with Shell, Agip, Mobil, and Equinor set to sell off 26 oil blocks to indigenous firms. The affected blocks have an estimated total reserve of 8.211 million barrels of oil, making them a significant contributor to Nigeria’s hydrocarbon resources.
Elumelu recalled his previous tweet in 2022, where he expressed frustration over the massive oil theft in the country. "How can we be losing over 95% of oil production to thieves? Look at the Bonny Terminal which should be receiving over 200,000 barrels of crude oil daily. Instead, it receives less than 3,000 barrels, leading the operator Shell to declare force majeure," he tweeted.
The businessman blamed the government and security agencies for their inaction in exposing the oil thieves. "This is oil theft; we’re not talking about stealing a bottle of Coke you can put in your pocket. The government should know; they should tell us," Elumelu said, questioning the security agencies’ ability to uncover the perpetrators.
Elumelu also recalled how the previous administration allegedly blocked his company, Heirs Holdings, from acquiring an oilfield in 2017. He disclosed that his company had raised $2.5 billion to purchase a different oilfield, but former President Muhammadu Buhari and his late Chief of Staff, Abba Kyari, blocked the deal.
Nigeria’s Upstream Petroleum Regulatory Commission (NUPRC) chief, Gbenga Komolafe, recently announced that IOCs were set to divest their stakes in 26 oil blocks to indigenous firms. These blocks have an estimated total reserve of 8.211 million barrels of oil and significant potential to boost Nigeria’s national production.
Elumelu’s comments come at a time when Nigeria is facing growing concerns over its oil production capacity, as well as the impact of climate change on the country’s energy sector. His statements highlight the urgent need for effective measures to combat oil theft and address the concerns of IOCs, ensuring the country’s hydrocarbon resources are utilized to the fullest benefit of all stakeholders.
