Crude Oil Theft: 1,100 Barrels Stolen via Tunnel
Thieves stole about 1,100 barrels of crude oil worth more than Rs23.2 million from a high-pressure pipeline in Rawalpindi, police say. The crude oil theft was carried out through a 181-foot tunnel dug from a rented house.
The theft came to light in the Dhamiyal police station area, where the pipeline belongs to Pakistan Oilfields Limited (POL). Police raided the house, recovered 1,431 litres of crude oil from an underground tank and arrested three men at the scene.
The Express Tribune reported that the case was registered on the complaint of Shahid Ahmed, a senior executive administration officer at POL.
How the crude oil theft worked
According to the first information report, the suspects rented a house near the company’s high-pressure supply line. From inside the house, they dug an underground tunnel and laid a 181-foot pipe through it to reach the main pipeline.
One end of the pipe was fixed to the supply line with a clamp. Crude oil then flowed through the pipe into an underground storage tank built inside the house, where it was stored before being moved on.
Police said the gang had stolen around 1,100 barrels of crude oil, worth more than Rs23.2 million, before the raid.
The arrests
Three suspects, Muhammad Mumtaz, Shaukat and Muhammad Akram, were arrested at the scene during the raid. The first information report also named Shah Muhammad, the caretaker of the house, along with Sajid, Akhtar, Hafizur Rehman and Zahid, for their alleged role in the theft.
The 1,431 litres recovered from the tank is only a small part of the oil said to have been stolen. Police have not said where the rest of the oil went or who bought it.
Why pipeline theft matters
Fuel theft from pipelines is a costly problem for Pakistan’s energy firms. Every barrel taken from a line is a barrel that never reaches a refinery, and the losses land on companies and, in time, on consumers.
The case also comes at a time of falling world oil prices. Brent crude has dropped to a two-month low, and petrol in Pakistan now sells at Rs338 a litre after a Rs8 cut. Even so, stolen crude sells at a steep discount on the black market, which keeps the trade alive.
Pakistan’s listed oil and gas firms have had a strong year. OGDC has started gas production from a new well in Khairpur, and PPL reported a profit of Rs99 billion with 11 discoveries in the last financial year. Theft from their pipelines cuts into those gains and adds to security costs.
What happens next
Police are still investigating. The men named in the report who were not arrested are being sought, and officers will want to trace where the stolen oil was sold.
The case will also raise questions for POL about how a tunnel and a tank could be built beside a high-pressure line without being noticed. Pipeline security, and who watches the lines that run past homes and fields, is likely to come under fresh scrutiny.
Frequently asked questions
How much oil was stolen?
About 1,100 barrels of crude oil, worth more than Rs23.2 million, according to the police report.
How did the thieves tap the pipeline?
They rented a house near the line, dug a tunnel from it and laid a 181-foot pipe to the main supply line, fixed with a clamp. The oil flowed into an underground tank inside the house.
How much oil did police recover?
1,431 litres of crude oil from the underground tank during the raid.
Who was arrested?
Muhammad Mumtaz, Shaukat and Muhammad Akram were arrested at the scene. Shah Muhammad, the caretaker, and four others were also named in the report.
Where did it happen?
In the Dhamiyal police station area of Rawalpindi, on a pipeline belonging to Pakistan Oilfields Limited.
