Energy

Stakeholders stress need to end oil theft

Published

2 years ago

September 16, 2022

Critical stakeholders have underscored the need to tackle illegal oil bunkering in the Niger Delta, lamenting that the country’s revenue is dwindling drastically due to the activities of oil thieves.

The stakeholders who spoke in during interviews in some of the South-South states, described oil theft as disastrous to Nigeria’s economy and environment.

They advocated the use of technology to track the movement of the stolen oil to foreign destinations, saying that the quantity taken to such countries constituted the major loss in Nigeria’s oil sector.

The respondents are of the opinion that Nigeria should collaborate with governments of the countries where the stolen crude is taken to, so as to effectively check the economic crime.

An Uyo-based policy analyst and social commentator, Mr Tijah Bolton-Akpan, said that Nigeria lacks modern stock taking technology for oil sector operations.

According to him, the nation is unable to quantify the amount of crude lost to illegal bunkering.

“There is artisanal crude theft and there is also industry level theft by international criminals with the support of local collaborators.

“There is an urgent need to identify these unpatriotic local collaborators within the oil and gas industry, security agencies and other sectors and deal with them decisively.

“We can track the quantity of crude theft if we have the technology to detect where crude is being intercepted,” he said.

Bolton-Akpan, the Chief Executive Officer, Policy Alert, said that Nigeria’s export earning was 80 per cent dependent on oil, and interruptions in oil production and sales had affected the nation’s ability to deliver social services.

“The situation has created a twin revenue and debt crisis, worsened by the exchange rate challenge and deepening inflation.

“When oil facilities are compromised for theft the environment is polluted, social security is challenged and the affected communities become volatile,” he said.

He urged the Federal Government to strengthen cooperation with governments of the countries where Nigeria’s stolen crude is taken to, in order to check the crime .

“Some of the stolen crude is moved to foreign destinations for refining. An effective cooperation will expose the criminals.

“The country should also take the security of oil facilities seriously. We are not serious about securing our oil facilities,” he said.

Dr Goodnews Aniete, an environmentalist and public health advocate also based in Uyo, said the activities of illegal oil thieves did not affect only the economy.

Aniete said the activity had hugely threatened public health in the south-south due to the emission of carbons into the air, through illegal refining.

“In trying to illegally tap crude from pipelines, the oil thieves have spilled a large quantity thereby damaging the environment.

“In some communities, the flora and fauna have been damaged. Some species of aquatic lives have been exterminated.

“We should work as a people to tackle this monster. It does no good to society,” he said.

He also urged the government to deploy appropriate technology to monitor the amount of crude stolen from Nigeria and the countries they were taken to.

Aniete further stated that the greed of a few unpatriotic individuals should not override the need to protect public health.

He said that residents of communities where illegal oil refineries were located where at a huge risk of possible health challenge and should cooperate with security agencies to bring the perpetrators to book.

“The health implication may not become immediately manifest but the effect will surely come later in life,” he said.

However, the Nigeria and Security and Civil Defense Corps (NSCDC) says it employs tactics to effectively tackle oil theft and related crimes in the Niger Delta.

The Commandant of the corps in Akwa Ibom, Mr Suleiman Mafara, said that the command had created strategic checkpoints to stop and search vehicles conveying petroleum products in the state.

Mafara said that to tackle those transporting illegally refined petroleum products, the command had ensured that only genuine products entered and left Akwa Ibom.

“Akwa Ibom is largely a transit state, the measure has proven effective in checking and curtailing illegal activities.

“Vehicles, including trucks conveying petroleum products without authentic waybills from authorised depot’s and tank farms are impounded and suspects arrested,” he said.

He said that the command was synergising and collaborating with other critical stakeholders in the oil and gas industry as well as sister security agencies to tackle the crime.

Mafara said the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Independent Petroleum Marketers Association of Nigeria (IPMAN), had helped the command to identify and arrest those conveying petroleum products with falsified documents.

“Our personnel work with IPMAN, DPR and NUPENG to verify genuine waybills, while bearers of falsified ones are arrested and their trucks impounded.

“Intelligence has played a major role in the corp’s arresting, bursting of illegal refineries and prevention of pipeline vandalism,” he said.

Mafara charged all field intelligence officers to intensify efforts and work with their informants to generate timely and actionable intelligence that would help combat the menace.

He said that prosecution and securing conviction of arrested oil thieves was expected to serve as a deterrent to potential criminals.

The Commandant noted that the challenges of fighting oil theft and pipeline vandalism in Akwa Ibom differed from what obtained in other Niger Delta States.

“Over 85 per cent of the oil explored in Akwa Ibom is in the high sea which is mainly operated by ExxonMobil via QIT terminal.

“The corps has a lot of personnel within and around the facility offering 24-hour protection for the pipelines and operation generally,” he said.

He said NSCDC in Akwa Ibom was committed to fighting illegal oil bunkering which was inimical to the environment and economy.

The Commandant said that the collateral implications of illegal oil bunkering on the society could not be quantified.

“We are prepared to play our roles. We urge the public to support us with reliable intelligence,” he added.

On his part, the Chairman, IPMAN, Rivers chapter, Mr Joseph Obele, also said in Port Harcourt that the country lost crude to illegal refiners who burst pipelines to access it.

He equally said a greater quantity of crude was lost to international thieves aided by corrupt officials in the oil and gas industry to steal the product.

Obele however expressed hope that speedy implementation of the Petroleum Industry Act (PIA) would help to check the trend.

Attributing oil theft in the Niger Delta to deprivation faced by the region, he urged the Federal Government to ensure speedy implementation of the PIA which appropriates three per cent equity to oil producing communities.

According to the IPMAN Chairman, until indigenes of the region begin to own commensurate stakes in the oil and gas economy, the challenge of oil theft will linger.

The lecturer in the Department of Business and Entrepreneurship, Rivers State Polytechnic, said corrupt officials in the sector always remained silent whenever issues of oil theft were discussed.

According to him, the bulk of theft around the oil sector happens in corporate offices.

He urged oil bearing communities to adequately support security agencies in their mandate to protect oil facilities and expose acts of sabotage in the industry.

In the Etche community, Mr Charles Utong, a fisherman also said that crude oil theft had negatively impacted on fishing and other aquatic lives in the area thereby lowering the local economy.

He urged the government to ensure adequate pipeline survivance and environmental implementation of conservation policies that would protect aquatic lives and sustain fishing livelihood.

Also, Mr Sam Etengung, a leader in the community, said there was a need to stop illegal oil bunkering in the Niger Delta to improve the country’s revenue and protect the region’s environment.

“Government has a lot to do; oil producing communities and other stakeholders need to check oil theft.

“Government has to meet with the communities as these activities are usually linked to youths in the communities.

“These youths have often alleged negligence by oil companies and lack of social infrastructure by the government,” he said.

He also said that even the local women now chose to do illicit crude oil trade rather than conventional fishing and farming.

However, Mr Erastus Awortu, Chairman, Andoni Local Government Area of the state has commended Rivers Government for its efforts to end illegal oil bunkery in the state.

He said that the State Government, through the supervision of the security agencies and Local Government Chairmen, had stepped up actions towards ending the crime.

Energy

Diesel price stands at N1341.16 in March 2024 – NBS

Published

11 hours ago

April 18, 2024

NewsDirect

The National Bureau of Statistics (NBS) has said that the average retail price of a litre of diesel increased from N840.81 in March 2023 to N1341.16 in March 2024.

NBS stated this in its Diesel Price Watch for March 2024 released in Abuja on Thursday.

The report said that the March 2024 price of N1341.16 per litre amounted to a 59.51 per cent increase over the N840.81 paid in March 2023.

“On a month-on-month basis, the price increased by 6.69 per cent from the N1257.06 per litre recorded in February 2024,” it added.

On state profile analysis, the report said the highest average price of diesel in March 2024 was recorded in Edo at N1566.67 per litre, followed by Jigawa at N1533.33 and Cross River at N1532.71.

It stated that the lowest price was recorded in Plateau at N1067.25 per litre, followed by Niger at N1140.00 and Adamawa at N1175.

“In addition, the analysis by zones showed that the South-South had the highest price of N1419.35 per litre, while the North-Central recorded the lowest price at N1230.98.’’

Energy

TCN deploys technology to detect sudden drop in power generation

Published

21 hours ago

April 18, 2024

NewsDirect

The Transmission Company of Nigeria (TCN) says it has deployed a Generation Dip/Loss Detection System (GLDS) which detects and responds to sudden drops or dips in power generation.

The General Manager, Public Affairs, TCN, Mrs Ndidi Mbah said in a statement in Abuja on Wednesday that the deployment of the GLDs was part of the company’s efforts to enhance grid management.

“As TCN continues to make efforts to enhance grid management, its engineers have recently deployed the GLDS which plays a pivotal role in detecting and responding to sudden drops or dips in power generation across the network.

“This innovation stands as a testament to TCN’s commitment to advancing grid management capabilities.

“Designed to empower the National Control Centre (NCC) in Osogbo, GLDS provides grid controllers in NCC with advanced tools for real-time monitoring and analysis of grid performance,” she said.

Mbah said that the GLDS intuitive interface allows for the setting of parameters, continuous monitoring of power generating stations, and comprehensive reporting functionalities, enabling swift responses to grid disturbances.

She said that the GLDS incorporates sophisticated data analytics and machine learning processes to analyse real-time data and identify patterns associated with sudden generation loss.

“By leveraging anomaly detection techniques, GLDS can promptly alert grid controllers on deviations from normal grid behaviour, facilitating proactive intervention to prevent widespread disruptions.

“TCN ensures seamless communication between GLDS and Internet of Things (IoT) cloud servers, enabling more rapid response and coordination of mitigation strategies.

“This connectivity underscores TCN’s commitment to enhancing grid resilience and ensuring the uninterrupted delivery of electricity to consumers across the country,” she said.

Mbah said that previously, TCN engineers had developed an in-house design that leverages IOT technology as an innovative solution in response to the challenge of limited visibility of power generators.

According to her, the IOT devices, which were strategically deployed across power stations and some substations, facilitate the collection of near real-time data, including power generation levels and grid performance metrics.

“The IOT enabled the expansion of visibility of power generating stations from 6 to 27, this has helped TCN significantly improve its ability to monitor grid load and identify potential issues before they escalate.

“Recently, the IOT device was also used to capture generation from Taopex GS and Zungeru Hydro Power Stations, bringing the total number of power stations visible to the national grid to 29.

“GLDS and the IOT represent a significant step forward in bolstering grid stability and reliability,” she said.

Mbah said that these initiatives would empower TCN’s grid controllers with the insights needed to proactively address challenges and minimise disruptions.

“As well as demonstrates TCN’s dedication to meeting the evolving demands Of the Nigerian Electricity Supply Industry (NESI),” she said.

Energy

FG, PETAN to collaborate on oil, gas development

Published

21 hours ago

April 18, 2024

NewsDirect

The Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri has expressed the Federal Government’s readiness to collaborate with the Petroleum Technology Association of Nigeria (PETAN) to increase the country’s oil production and revenue.

Lokpobiri said that the partnership became necessary to address the dwindling oil production and the need to drive investment in the nation’s oil and gas sector.

The minister gave the assurance during his visit to members of PETAN in Lagos on Wednesday.

Lokpobiri said that the federal government was putting up measures to restore oil production, adding that there is a need for the ministry and PETAN to work together to maximise all available opportunities that can help increase production in the country.

According to him, the quickest way for the country to overcome the current economic hardship is through the exploration and production of oil and gas.

He added, therefore, that the government is actively engaged in policy evolution, aimed at maximising the utilisation of all available oil and gas wells in the country.

Lokpobiri said, “No country leaves their well idle, in Nigeria, so many seismic activities have been done and we have a lot of oil wells that are yet to be utilised.

“Imagine, one of the OML’s has about 150 idle wells. There is no way we can increase production if these wells continue to be idle.

“The wells have already been drilled and capped since the 1970s. These are low-hanging fruits.

“Part of our policy direction is to see how we can farm out some of these idle wells for proper utilisation.

“Now that the world is transitioning to cleaner energy, the country must use the available time to maximise the utilisation of the wells to increase production.

‘’Except we increase our production, our midstream and downstream will continue to suffer.

“So, I believe that I and PETAN need to work together so that we can maximise the opportunities the industry can avail us, for the economic prosperity and development of the nation,” he added.

Lokpobiri said he had made a strong commitment to work with PETAN and other Nigerians in the oil and gas sector, who have shown proven capacity to ensure the growth of the sector.

He expressed conviction that the solution to Nigeria’s energy poverty lies with every stakeholder.

He noted that nobody or nation would come to salvage the nation’s oil and gas industry except Nigerians.

The Minister said if Nigerians are allowed to play at the desirable level, there will be a lot of improvement in the petroleum sector.

He also pointed out that the essence of the Local Content Law was to enable Nigerians to build strong capacity to be able to play side-by-side with their international counterparts.

“In line with NUPRC’s statutory declaration, Nigeria now boasts of 37.5 billion crude oil reserves, while its total gas resources as of the beginning of this year, now stands at 209.26 TCF.”

The Minister said the President Bola Tinubu-led administration was doing all it could to take the nation to a better economic standing in the comity of the nations.

He affirmed that one of the cardinal points of the president was to address the nation’s energy poverty, noting that as the world is transiting, the nation must address its challenges to enable it transit as well.

Earlier in his remarks, the Chairman of PETAN, Mr Wole Ogunsanya, reiterated the association’s commitment to supporting the minister and all the efforts of President Tinubu toward increasing oil production and development of the energy sector.

He also called on the government to see how it could grant incentives to stakeholders to ensure better output and economic benefit for the industry and the nation at large.

Ogunsanya said, “Honourable Minister, we thank you and assure you that we will continue to align ourselves with the vision of the president.

“And as we have continually said, the nation must show its indigenous capacity to explore and drill oil 100 percent.”

He expressed PETAN members’ readiness to help in the development of the Nigerian oil and gas sector.

Also speaking, the Publicity Secretary of PETAN, Dr Innocent Akuvue, thanked the minister for making out time to visit the association.

He assured the minister of the association’s support to the ministry always.

“Minister, we thank you for this wonderful visit and we want to assure you that PETAN is solidly behind you and Mr President.

“By God’s grace we will not fail to support the vision and aspirations of the president in boosting the economic situation of the country,” he said.

PETAN is an association of Nigerian indigenous technical oilfield service companies in the upstream and downstream sectors of the oil and gas industry.

The association was formed to bring together Nigerian oil and gas entrepreneurs to create a forum for the exchange of ideas with the major operators and policymakers.

One of the association’s core objectives is to plan on how to acquire, develop, advance and promote petroleum technology for the benefit of Nigerians.