• 4 minutes Projection Of Experts: Oil Prices Expected To Stay Anchored Around $65-70 Through 2023
  • 7 minutes Oil prices forecast
  • 11 minutes Algorithms Taking Over Oil Fields
  • 14 mintues NIGERIAN CRUDE OIL
  • 2 hours UK, Stay in EU, Says Tusk
  • 2 mins Socialists want to exorcise the O&G demon by 2030
  • 9 hours Blame Oil Price or EVs for Car Market Crash? Auto Recession Has Started
  • 3 hours Nuclear Power Can Be Green – But At A Price
  • 25 mins Chevron to Boost Spend on Quick-Return Projects
  • 6 hours Venezuela continues to sink in misery
  • 7 hours What will Saudi Arabia say? Booming Qatar-Turkey Trade To Hit $2 bn For 2018
  • 4 hours Maritime Act of 2020 and pending carbon tax effects
  • 21 hours WSJ: Gun Ownership on Rise in Europe After Terror Attacks, Sexual Assaults
  • 19 hours How Is Greenland Dealing With Climate Change?
  • 19 hours German Carmakers Warning: Hard Brexit Would Be "Fatal"
  • 1 day Solid-State Batteries
  • 23 hours Trump inclined to declare national emergency if talks continue to stall - Twitter hides this as "sensitive material"
  • 1 day Orphan Wells
Alt Text

The Tech Transforming The Energy Industry

Decentralized energy solutions are sprouting…

Alt Text

The Oil Bull Market Is Back

Oil entered a bull market…

Alt Text

New Audit Shows Higher Aramco Oil Reserves

A new independent audit of…

Ronke Luke

Ronke Luke

Ronke Luke has experience advising senior executives (including at the ministerial level) on initiatives to develop and increase uptake of advanced energy and environmental technologies…

More Info

Trending Discussions

Nigerian Oil Swindle: How Did 57 Million Barrels Disappear?

Nigeria has filed a law suit against Eni, Chevron, Shell, Total and Petrobras accusing the oil majors of $12.7 billion in illegal oil exports. Per the Associated Press, these companies failed to declare at least 57 million barrels of crude shipments to the United States between 2011 and 2014. Nigeria’s Lower House of Representatives claims that illegal exports of oil and liquefied natural gas (LNG) are higher at $17 billion, and went not only to the U.S. but also to China ($3 billion) and Norway ($840 million). The Nigerian government determined these estimates through audits that showed discrepancies between the declared amounts of oil leaving Nigeria versus landing in the U.S. and other export markets.

Unaccounted oil exports are symptomatic of greater infrastructure problems. Nigeria has no idea how much oil it produces. According to Ecobank’s Head of Energy Research, Dolapo Oni, no data is collected through metering oil either at the wellhead or flowing through pipelines. Instead the amount of oil leaving from export terminals is used as a proxy for national production. The entire system is susceptible to corruption. Oil companies have resisted calls for metering citing costs. Government authorities have not insisted. Industry analysts indicate that an overarching Petroleum Industry Bill (PIB) intended to implement much needed reforms, would introduce metering, close loopholes, and streamline governance. The PIB, however, has languished for eight years in Nigeria’s National Assembly. Including the eight years of consultation that started in 2000 under President Obasanjo, Nigeria has been trying for 16 years to pass legislation to reform its petroleum sector. Four presidents over five presidential terms and five legislative sessions have failed to pass the bill. Nigeria Extractive Industries Transparency Initiative (NEITI) claims that the losses to Nigeria for failing to pass the PIB total $200 billion. Per NEITI, stakeholder disagreements over “regulatory framework, including power of the minister, ownership and control of the resources, host community benefits, environmental concerns, appropriate fiscal regime, etc.” have stifled progress. Related: Is The Era Of Cheap Natural Gas Over?

President Buhari, who has described the corruption in Nigeria’s oil industry as “mind boggling,” is being urged to invest his political capital to rally the stakeholders to pass the PIB. The collapse in oil prices has slashed Nigeria’s foreign exchange earnings and plunged the country into recession. The current economic turmoil might finally present the opportunity to pass the PIB as part of much needed reforms necessary for economic recovery. NEITI is not hopeful, characterizing past and current activity as “motion without movement.”

Recognizing the challenge of navigating the PIB through the legislature, recovering $12 billion through the courts might be easier and serves notice that President Buhari is making good on his promise to tackle corruption in the oil sector.

By Ronke Luke for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment
  • GregSS on October 12 2016 said:
    They don't want to put in meters because of the cost, and 57 million barrels disappear. Sounds like those meters would have paid for themselves many times over.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News