Rise in theft costs Shell $4.5bn a year in Nigeria
A surge in oil theft in the Niger Delta is costing Royal Dutch Shell up to $4.5bn a year in lost revenues, according to new figures.
Against a backdrop of much resentment against Shell in the region following decades of polluting oil spills, the company estimates that up to 100,000 barrels of oil a day are now being illegally extracted from wellheads and the network of pipes that criss-cross the Niger Delta, as oil hovers around $125 a barrel. This so-called "bunkering" of oil – by local communities as well as organised gangs – equates to 36.5 million barrels a year, worth about $4.5bn at today's prices.
The company says it has noticed a substantial rise in recent months and does not agree with critics who say that at least some of the bunkering is motivated by the need for cash – and in some cases revenge – after so-called operational oil spills caused environmental damage which deprived communities of their fishing and farming livelihoods.
Defenders of Shell say the government and army is turning a blind eye to bunkering and could do more to prevent it.
- 1 Tidal launch: The most pretentious lines from Alicia Keys' valedictory speech
- 2 Britain First 'acting like Ukip henchmen' by invading meeting of activists in revenge for pub protest against Nigel Farage
- 3 Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
- 4 Tidal: Jay Z's Spotify rival streaming service criticised for making wealthy artists even richer
- 5 Brixton squat flats now costing up to £3k per month show how out of control rent is in London
Britain First 'acting like Ukip henchmen' by invading meeting of activists in revenge for pub protest against Nigel Farage
Costa Concordia: Shipment of Mob drugs was hidden aboard cruise liner when it hit rocks off Italian coast, investigators say
Brixton squat flats now costing up to £3k per month show how out of control rent is in London
A new (old) cure for MRSA? Revolting recipe from the Dark Ages may be key to defeat infection
Turkey power cut: Prime Minister says nationwide blackout could be caused by terrorists
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
The West has it totally wrong on Lee Kuan Yew
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
Revealed: Putin's army of pro-Kremlin bloggers
iJobs Money & Business
£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50,000 - £55,000: Neil Pavier: Are you a professionally qualified commercial ...
£45,000 - £55,000: Loren Hughes: Are you looking for a new opportunity that wi...
Circa £45,000-£50,000 + benefits: Sheridan Maine: Are you a newly qualified ac...