Nigeria’s oil regulator has accused ExxonMobil of being involved in an illegal lifting of petroleum products from an offshore terminal, saying the American firm’s action constitutes “economic sabotage”.
– Key points to note
In a June 8 letter to Nigeria’s defence chief, the Nigerian Midstream and Downstream Petroleum Regulatory Authority said the vessel Barumk Gas was lifting Butane at Bonny River Terminal without its authorization.
By law, the regulator has the exclusive right to have a key to the oil valve and companies need to be accompanied by a member of the regulatory staff to tap the oil.
“This unlawful action is being facilitated with the active connivance of ExxonMobil who have illegally destroyed the locks on the sea-line valve whose keys are in the custody of the Authority,” said the NMDPRA in the letter requesting the defence chief to “urgently prevent the sailing out of Barumk Gas until investigations into the matter are concluded.”
“The actions of ExxonMobil and Barumk Gas constitute economic sabotage, criminal damage and theft of Nigeria’s national resources,” the agency added in the letter seen by Pluboard.
ExxonMobil denied wrongdoing. A spokesperson said on Monday that “all operations of the NNPC/MPN Joint entire are carried out in full compliance with the law.”
Reuters reported that its Refinitiv data showed Barumk Gas was fully loaded at the Bonny Terminal.
– Learn more
Nigeria blames oil theft by criminals and their rich backers, as well as illegal lifting, for huge loss of oil revenue yearly. In April 2022, Nigeria’s state oil company NNPC said the country lost 95% of oil production at Bonny Terminal to theft.
Oil majors in Nigeria have in the past been forced to halt output following the illegal tapping of pipelines. Still, the tone of the regulator’s letter against ExxonMobil appears to reflect a more serious development.
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