By Bolaji Ajala, with agency report

Shell Production Development Company (SPDC) has estimated that about 100,000 barrels of crude oil are being stolen from its operations in the Niger Delta region of Nigeria, this is coming just as Transocean pipes announced its decision to provide eight out of its ten ultra – deepwater and deepwater rigs in Brazil and Africa.

Shell vice president communications, Upstream International, Nick Wood, who disclosed this said they have not confirmed the exact figures for theft of oil, but have estimated about 100,000 barrels a day’. He added that there have not been any reduction sign in the theft of oil.

Shell said that spill in the Niger delta region are common and it is caused by militant attacks on oil infrastructure or local stealing of oil from pipelines for use in illegal refineries. Also they said that in the last five years, 75 percent of oil spills in the region have been caused by third party interference.

However, experts had estimated that at least 9million barrels of crude oil have been spilled in the region since oil production began there and that oil had flowed twice last year into the Gulf of Mexico from BP PLC’s (BP) Macondo well

Hence, Shell executive, Godson Njoku said the final solution to prevent crude oil theft (bunkering) in the industry rested with the Nigerian government.

“Ultimately the oil industry does not have the capacity to police our entire infrastructure and it is the responsibility of the government to address this issue. Only the government has the authority to provide adequate security to manage what is a terrible drain on Nigeria’s economy as well as a source of major oil spills,” Njoku enthused.

Transocean

In an effort to boost its revenue, Transocean pipes has decided to provide eight out of its ten ultra – deepwater and deepwater rigs in Brazil and Africa.

According to the company’s recent fleet update, the Africa countries for deepwater exploration include Nigeria, Ghana and Angola amongst others.

The report states that despite the political instability in these countries which have hampered its investment over time, deepwater production is expected to increase its revenue.

However, the update stated Transocean’s price estimate as $85.70 which is almost a 40 percent premium over its current market price.

The update state further that, the deepwater drilling will be working on projects for its various oil majors over the next few months.

The oil majors according to the update include; Exxon Mobil, Anadarko, Chevron, Shell, Devon and Petrobras amongst others.

Also, the update states that, Brazil’s reserves are concentrated in the pre-salt zone that occurs 18,000 feet below the ocean surface and as a result of this challenge Transocean will use high specification rigs to increase its revenue due to high rates charged per day.