Losses to Royal Dutch Shell Due to Oil Theft

Oil company Royal Dutch Shell reported that its earnings for 2013 was almost $1 Billion lower due to oil theft and other acts of sabotage that occurs in Nigeria.

Shell’s Chief Financial Officer stated that nearly $1 Billion worth of oil is stolen from the oil industry each month across Nigeria. In 2011, the Nigerian government lost an estimated $7 Billion in tax revenue due to oil theft. The amount of tax revenue lost was roughly equal to 25 percent of the Nigeria’s national budget for 2013.

Source:  Eduard Gismatullin, “Seplat Sees No Oil Theft in Nigeria, Where Shell Lost $1 Billion,” Bloomberg Businessweek, March 14, 2014.