Thursday, 1 August 2013

Shell: Nigeria may lose $12bn revenue to oil thefts

 Shell on Thursday said that oil thefts and disruptions to gas supplies could cost Nigeria $12 billion in lost annual revenue.
Outgoing Chief Executive of the Anglo-Dutch company, Peter Voser, disclosed this while announcing a slip in quarterly profits in earnings statement. He said the company’s net profits slumped by 57 per cent in the second quarter compared with the equivalent period last year.

Shell last month, announced that company insider, Ben van Beurden, would become Chief Executive on January 1. The company had already revealed in May that Shell veteran, Voser, would retire in 2014 to spend more time with his family.
Blaming oil thefts and gas supply disruption in Nigeria for the plunging quarterly profits, Voter said, “higher costs, exploration charges, adverse currency exchange rate effects and challenges in Nigeria have hit our bottom-line.”
He noted that oil thefts and disruption to gas supplies were causing widespread environmental damage in Nigeria. “These results were undermined by a number of factors but they were clearly disappointing for Shell,” he said, adding that: “We will play our part, but these are problems Shell cannot solve alone.”
On Wednesday, it was reported that Shell was planning to sell four more oil blocks in Nigeria. In June, the company had said that it was considering further sale of assets in the eastern Niger Delta, where it has security problems. But it said then that it was still committed to Nigeria.
Shell has already sold eight Niger Delta licences for $1.8billion since 2010. The International Energy Agency last month said that oil theft was one factor in a fall of output by the Organization of Petroleum Exporting Countries (OPEC), which Nigeria is a member.

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