Chairman of Shell Companies in Nigeria, Osagie Okubor, has said the country suffered a significant loss in oil revenue over the last year, as a result of pipeline vandalism and oil theft.

Speaking at the just concluded Nigerian International Energy Summit held in Abuja, Okubo noted that the Trans Niger Pipeline, capable of transporting 180,000 barrels of crude per day, has been shut down for over a year, resulting in a loss of approximately 65,700,000 barrels of oil.

If the average oil price of $83 during the period is used this equals a loss of around $5.45 billion or N2.3 trillion in revenue.

The loss has not only impacted Nigeria's oil production quota to the Organisation of Petroleum Exporting Countries but is also affecting the gas supply to the Nigeria Liquefied Natural Gas.

"The shutdown of the pipeline has had severe consequences, as it is responsible for the 60% capacity of gas supply for the country," he added.

Okubor further stressed the need for the incoming administration to prioritize the security of oil infrastructure, as the loss from pipeline vandalism and oil theft has had devastating implications.

He also noted that the lack of power to execute recommendations and policies in the various documents and laws of the oil sector remains a challenge to the industry.

Meanwhile, the Managing Director of Nigerian Liquefied Natural Gas Limited, Philip Mshelbila, stated that 40% of the capacity of globally renowned gas firms had been lying fallow due to theft.

Despite various frameworks and written documents on how to tackle the challenges in the oil sector, implementation still needs to be improved.

Last year, the Nigerian National Petroleum Company reported detecting an illegal connection on the Trans Escravos pipeline looped to the Afremo test line.