Nigerian Navy cracks down on Illegal crude oil refineries

Nigerian Navy cracks down on Illegal crude oil refineries The Nigerian Navy eliminated 260 illegal refineries and destroyed 100,000 tons of illegally produced fuel, according to Yahoo news.

The source reported that $20 million dollars worth of gasoline are stolen from Nigeria and sold on the world market every day. Shell reported that it lost $1 billion in oil thefts in 2013.

Illegal oil refineries that siphon the supply of crude without government consent are becoming an increasing problem in Nigeria. Cross Ebikpade, a former militant, said that destroying the illegal refineries will have little effect, as they use very easy to find equipment like oil drums.

"You can burn the site today but by next week the operators are back in business," he said.

Additionally, Shell reported that there was a leak in its underwater pipeline that resulted in its closing the Forcados export terminal, according to Fox News. The cause of the leak is still being investigated.

According to Shell spokesperson Precious Okolobo, the export line was closed as soon as the leak was detected. Nigeria's government says that sometimes thieves will hack into pipelines to steal the oil and sell it on the black market.

More information on Nigerian oil and gas can be found on PennEnergy's research area.

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