- Oil theft hindering Nigeria from meeting OPEC quota – Elumelu
Former President Olusegun Obasanjo has revealed that his administration’s attempt to partner with Shell Plc to manage Nigeria’s refineries was rejected due to excessive corruption and amateur management.
In an interview with the Financial Times, which went viral on Saturday, Obasanjo, who served as president from 1999 to 2007, revealed that Shell cited these reasons for declining the offer.
He said, “When I was President, I invited Shell, and I said, ‘look, come and take equity participation and run our refineries for us.’ They refused. They said our refineries have not been well maintained.
“We have brought amateurs rather than bringing professionals. They said there’s too much corruption with the way our refinery is run and maintained. And they didn’t want to get involved in such a mess.”
He also criticised the government’s repeated promises to repair the refineries, expressing frustration with the government’s unfulfilled promises.
He said, “How many times have they told us that? And at what price?
“Those problems, as far as the government refineries are concerned, have never gone away. They have even increased. So if you have a problem like that and that problem is not removed, then you aren’t going anywhere.”
Oil theft hindering Nigeria from meeting OPEC quota – Elumelu
Also, Nigerian businessman, Tony Elumelu, has said the government and security agents in Nigeria should be able to tell Nigerians who steal the country’s crude oil, especially using vessels that move through the territorial waters.
Elumelu stated this in an interview published by the Financial Times on Friday.
The businessman, who said he dreaded oil theft, said the menace contributed to the divestment of international oil companies in Nigeria.
“When I was President, I invited Shell, and I said, ‘look, come and take equity participation and run our refineries for us.’ They refused. They said our refineries have not been well maintained.”
He said he discovered first-hand why international oil companies were partly divesting from onshore assets after criminal gangs began stealing crude from his pipelines.
In 2022, when things got to a point where his company had to shut down production, Elumelu took to social media, tweeting, “How can we be losing over 95 per cent of oil production to thieves? Look at the Bonny Terminal that 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.
“It is clear that the reason Nigeria is unable to meet its OPEC production quota is not because of low investment but because of theft, pure and simple!
“Meanwhile, oil-producing countries are smiling as their foreign reserves are rising. What is Nigeria’s problem? We need to hold our leaders more accountable.”
Speaking with Financial Times, Elumelu expressed optimism, saying, however, that oil thieves still take away 18 percent of crude from his field.
“42,000 barrels of crude are pumped out daily. Theft still takes away about 18 percent of production,” he stated.
Asked who was behind the theft, he replied, “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.
“Look at America — Donald Trump was shot at and quickly they knew the background of who shot him. Our security agencies should tell us who is stealing our oil. You bring vessels to our territorial waters and we don’t know?”
The 61-year-old founder of Heirs Holdings recalled how the previous administration of President Muhammadu Buhari allegedly stopped him from acquiring an oilfield.
He disclosed that Heirs Holdings had been looking to purchase the oilfield since 2017, having raised $2.5 billion to purchase a different one.
But in a twist, he claimed that former President Buhari and his late Chief of Staff, Abba Kyari, blocked the deal.
Speaking on the mass relocation of Nigerians abroad, Elumelu declared, “I support it totally. I don’t have a problem with people saying ‘I’m going to Canada, the UK or the US.’
“Joblessness is the betrayal of a generation. You’ve gone to school and come back with your dreams and aspirations and you don’t have the opportunity.
“People who decide to find solutions elsewhere, no one should stop them. But for those who decide to stay, they should try to create an impact and build a legacy.”
