Oil Companies Blame Host Communities for Theft, Pipeline Vandalism

Oil companies operating in Nigeria have pointed to host communities as the main culprits behind oil theft and pipeline vandalism in the region.

This claim was made during a public hearing on oil theft, pipeline vandalism, and their effects on oil-producing states, held by the House of Representatives in Abuja.

The companies highlighted that environmental damage in the South-South region is closely linked to vandalism actions, with host communities often involved.

Philip Akuduro, Team Lead at Oando PLC, emphasised that a large portion of oil spills can be traced back to acts of vandalism.

Akuduro further explained that many of those responsible for stealing crude oil and damaging infrastructure through illegal connections are residents of the very communities hosting these operations.

He said, “Data by Oando on Burutu in Southern Ijaw revealed that over 90 per cent of oil theft and pipeline vandalism were perpetrated by members of the host communities.”

“These vandals have increasing penance while their capacity to steal from the commonwealth knows no bound. They sabotage the efforts of oil companies to minimise incidences of spillages in their areas.”

“Our operations covering largely onshore and marshy areas are easily accessible to vandals whose activities result in spillage and pollution of the environment as oil spills are swiftly spread by the strong underwater current.”

Ewarezi Useh, Chief Operating Officer of Aieto Group, a petroleum company, also attributed the decline in crude oil production to the actions of vandals.

Useh emphasised the need for a harmonious relationship between oil companies and their host communities as a key solution to combating the problem.

He added that the joint efforts of security agencies have been effective, with crude oil production now beginning to show signs of recovery.

Rep. Julius Pondi (PDP-Delta), Chairman of the House Committee on Environment, reaffirmed the committee’s commitment to uncovering the causes of environmental degradation and pollution linked to oil company operations.

Pondi mentioned that the committee had scheduled an oversight visit to Oando’s operational sites in Delta State to verify claims that the company had cleaned up the oil spills that affected some communities in May.

The Nigerian National Petroleum Company Limited (NNPCL) and the Ministry of Petroleum estimate that the country loses between 200,000 and 400,000 barrels of crude oil daily due to theft.

• In a recent interview with Channels Television, NNPCL’s Group Chief Executive Officer, Mr. Mele Kyari, revealed that since the crackdown on illegal refineries began in 2022, 8,684 sites—referred to as “boiling points” rather than actual refineries—were deactivated.
• He also disclosed that 6,610 illegal pipeline connections were discovered, with 5,913 of them removed. Despite these efforts, Kyari pointed out that over 1,000 illegal connections remain, and new ones are reconnected daily, complicating the fight against oil theft.