There is a significant miscalculation in determining how much Nigeria is losing in terms of oil theft because oil losses due to other factors are often lumped together as theft, IgbereTV Reports
The Chief of the Naval Staff, Vice Admiral Awwal Gambo, said that these losses are then blamed on security agencies’ lack of effectiveness.
“We need to understand the differences between oil theft and oil losses. While oil theft is siphoning crude oil from vandalised pipes into barges, oil losses occur when there is known production, especially during shut-ins and force majeures as the Federal Government does not earn the desired revenue it should,” he noted.
“Losses also occur as a result of metering errors on the operating platforms as read. But the volume of crude oil shot-ins from non-production is often added to figures for oil theft instead of declaring them as oil losses. This should not be.
