Nigeria finds clandestine pipeline for oil theft

PORT HARCOURT, Nigeria, March 11 (Reuters) - Nigerian security forces have discovered an illegal pipeline used by a powerful Niger Delta gang leader to steal petroleum products from a state oil refinery, an army spokesman said on Tuesday.

The pipeline runs from the refinery in Port Harcourt through a secret camp in the creeks of Rivers state to a private jetty in Okrika, the stronghold of rebel leader Ateke Tom, spokesman Sagir Musa said.

It was not clear whether the pipeline was for carrying crude oil or refined products. Oil theft, known as "bunkering," is common in the oil producing delta, where industry sources say about 100,000 barrels of crude per day is lost to thieves.

"During our operation at pseudo-camps run by Ateke Tom, we found a pipeline running through his camp from the refinery to a private jetty in Okrika," Musa said.

"Right now, our men are in control of the camp."

The more common method of bunkering is to drill into pipelines and siphon off crude into barges. Criminally-run pipelines are rarer, although sources at the refinery said they were aware of several others.

The sources said the management of the refinery could not take action against the thieves for fear of attack.

Tom is the leader of one of several armed groups in the delta that have fought with troops and attacked government targets since early 2006. The crisis has cut Nigeria's oil output by a fifth and contributed to a spike in world oil prices.

Security forces have repeatedly raided militant hideouts deep in the dangerous creeks in recent months, including Tom's, to flush out criminal gangs.