From Channel NewsAsia
International oil companies drilling in the Niger Delta have faced a reality of violence, corruption and the threat of kidnapping since oil was discovered here 55 years ago.
Oil companies drill 2.5 million barrels a day but local militants are vandalizing pipelines and stealing 400,000 barrels each day, forcing companies to consider packing up their operations. “The cost of doing business in this country is pretty high as a result of the insecurity,” said security consultant Chika Nwaozuzu.“I don’t think it’s a very good thing for us as a nation because we need them (oil companies).”
As chairman of Slok Holding, the leading player in Nigeria’s oil and gas industry, Orji Kalu knows that the threats of piracy and kidnapping can frighten away multinationals. “The pirates and other related things are stopping foreign direct investment and they are becoming a problem,” he said. “All the major oil companies are not doing anything presently. They are just watching.”
Read more at Channel NewsAsia