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Stakeholders stress need to end oil theft

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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

Dangote Refinery seeks 2m barrels of US oil – Report

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Nigeria’s newly constructed Dangote refinery, Lagos is seeking to purchase millions of barrels of US crude oil over the next year as it ramps up processing rates, Bloomberg reported on Thursday.

According to the report, the plant has issued a term tender for the purchase of two million barrels a month of West Texas Intermediate Midland crude for 12 months starting in July.

“The plant, built by Africa’s richest man, Aliko Dangote, issued a so-called term tender for the purchase of two million barrels a month of West Texas Intermediate Midland crude for 12 months starting in July, according to a document seen by Bloomberg. The tender closes on May 21,” the report stated.

Recall that the 650,000 barrels per day Dangote Petroleum Refinery is taking advantage of cheaper oil imports from the United States for as much as a third of its feedstock as it starts production.

An earlier report by Bloomberg on April 18 stated that the plant has been shipping products in weeks while readying two units to enable gasoline (petrol) output that will deliver a long-promised transformation of the fuel market both in Nigeria and the region. It attributed this to analysts.

“Dangote is going to influence Atlantic Basin gasoline markets this summer and for the rest of the year,” said Alan Gelder, Vice President of Refining, Chemicals, and Oil Markets at the consultancy firm, Wood Mackenzie.

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Energy

530 CNG buses ready for deployment in Lagos, Oyo, Kwara, FCT, others

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The process for nationwide deployment of Compressed Natural Gas (CNG) vehicles has commenced. Not less than 530 buses are to be deployed by the end of the month in six pioneering states.

These are Oyo, Lagos, Kwara, Kogi, Kaduna, Nasarawa, and the Federal Capital Territory (FCT) Abuja.

Programme Director of the Presidential Compressed Natural Gas Initiative (PCNGI) Michael Oluwagbemi stated this yesterday.

It was during the event signaling the commencement of 15-day-long activities ahead of the rollout.

He said the distribution is on a demand-led basis.  He added that efforts would be accelerated at the conversion of diesel and petrol-fuel engines across the country.

According to Oluwagbemi, President Tinubu has directed the PCNGI to ensure the conversion of at least 10 per cent of the total number of vehicles in the country in the first year of the rollout of the initiative.

 

The programme began yesterday in the Southwest with the Presidential (virtual) commissioning of the critical gas supply projects.

 

Today, the team will inspect the Jets and Mikano Factory along with representatives of the Ministry of Labour and workers unions.

Southsouth and Southeast stakeholders engagement will be held tomorrow in Port Harcourt, the Rivers State capital.

Affiliate conversion and refuelling at the Femadec Site as well as an inspection tour of the Total Energies support station are planned.

Another six-day inspection tour of the Kojo Factory at the Enugu-Onitsha Site will begin on May 24 to receive the first set of assembled tricycles, buses, cylinders and kits ahead of the official launch.

The Luojia Assembly Plant for CNG tricycles on the Lagos-Ibadan Expressway will be inaugurated on May 30.

“These programmes are a fulfilment of President Bola Ahmed Tinubu’s promise to drive Nigeria’s energy transition in the transportation sector leveraging CNG and enabling economic growth,” Oluwagbemi stated.

He noted the President’s political will to ensure the full utilisation of natural gas which hitherto was being flared.

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Energy

Oil block bid rounds: NUPRC assures interested buyers of conducive environment

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The Chief Executive of the Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Engr Gbenga Komolafe, has assured prospective investors interested in participating in the country’s oil rounds of a conducive environment to conduct their business.

Komolafe made this assertion at the Miami International Roadshow for the 2024 licensing round, organised by the NUPRC in partnership with the Petroleum Technology Association of Nigeria (PETAN) and Zetse Advisory & Consulting.

Speaking, Komolafe declared that the marketing of oil blocks has garnered staunch backing from the highest echelons of the government.

Engr. Komolafe, who underscored the role of presidential support in attracting investors to the Nation’s oil sector, said the Licensing Round is part of concerted efforts by Nigerian authorities to revitalise the country’s oil and gas industry and foster increased investment.

According to him, the backing signals a concerted effort to provide a conducive environment for both domestic and foreign investors seeking opportunities in Nigeria’s energy market.

The Miami International Roadshow serves as a crucial platform for showcasing Nigeria’s vast potential in the petroleum sector and fostering partnerships with international stakeholders. By collaborating with stakeholders such as PETAN and Zetse Advisory & Consulting, Komolafe further affirms Nigeria’s commitment to fostering a transparent and investor friendly regulatory environment in its pursuit of energy sector excellence.

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