NNPC, Navy agree to curb crude oil theft

BY CHRIS OCHAYI

ABUJA— DETERMINED to stamp out illegal oil bunkering activities in the country, the Nigerian National Petroleum Corporation, NNPC, and the Nigerian Navy have agreed to work together to curtail the crude oil theft and other social crimes in the nation’s maritime waters.

NNPC’s Group Managing Director, Dr. Joseph Dawha during a courtesy call on the Chief of Naval Staff, Vice Admiral Usman Jibrin in Abuja, emphasized the need for the corporation and the Nigerian Navy to strengthen ties for the socio-economic growth and stability of the nation.

Dawha applauded the Navy for its tremendous support to the NNPC and its partners in fostering and ensuring a secure environment for its personnel, facilities and operations, stressing, “the Navy has supported the corporation in securing its assets and facilities in the upstream, midstream and downstream of the oil and gas industry.”He  added that the aggressive patrols and surveillance have led to the arrest of pirates and illegal bunkerers over the years.

He said that “the gallant security presence of the Navy has gone a long way in stabilizing NNPC operations in Escravos, Warri, Port Harcourt, Bonny, Atlas Cove in Lagos and the Nigerian Petroleum Development Company, NPDC operations in Benin city and environs.

Dr. Dawha expressed the readiness of the NNPC to sustain the engagement with the Navy and other security personnel especially in the areas of pipeline security, vandalism, crude and product theft and the associated crimes of kidnapping and abduction of oil workers on the near shore, offshore and deep water.

In his response, the Chief of Naval Staff, Vice Admiral Usman Jibrin, reassured the GMD and the top management of the NNPC of the Navy’s continuous support in reducing oil theft, illegal bunkering, piracy and poaching to its barest minimum.

He said that activities of oil bunkers and illegal refiners have given the country a negative image and the Navy is determined to chase the perpetrators of these nefarious acts out of business for the common good of the country.

- See more at: http://www.vanguardngr.com/2014/09/nnpc-navy-agree-curb-crude-oil-theft/#sthash.Kk0p1goi.dpuf

CIPM tasks FG on spate of crude oil theft

crude oil theft

BENIN CITY—THE Chartered Institute of Personnel Management of Nigeria, CIPM, has raised alarm that the daily theft in the oil sector is affecting indigenous operators negatively.

It, therefore, urged the Federal Government to find solution to the problem to encourage Nigerians who  invested in the oil sector.

Speaking during the Oil and Gas Sector Human Resource Forum with the theme: “Reshaping the Future of Oil and Gas Sector in Nigeria: The Entry of Indigenous Companies”, in Benin City, Mr. Alexus Akwukwaegbu, lamented that about one quarter of the nation’s daily oil production got missing, saying that while expatriates might endure the situation the indigenous investors could not.

He appealed to the Federal Government to assist indigenous companies in the sector by “giving indigenous operators incentives to refine crude oil and distribute or export the finished products. That is to use the indigenous operators to fill the existing void for petroleum products. We must consume most of our products, that is the only way to develop, generate power and create jobs.

“Only Nigerians will develop Nigeria. We must prepare and empower our people by challenging their abilities in a tightly regulated manner. Indigenous operators just like politicians will fail several times but they will also rise several times and become stable.

- See more at: http://www.vanguardngr.com/2014/08/cipm-tasks-fg-spate-crude-oil-theft/#sthash.CIVgYC4y.dpuf

Shell Loses 206,000bpd to Oil Theft, Sabotage

Shell logo

By Ejiofor Alike

Shell Petroleum Development Company (SPDC) has stated that it lost an average of 206,000 barrels of oil equivalent per day (bopd) in 2013 due to crude oil theft and shutdowns related to theft and other third –party interference.

In a statistics released by the company, the number of spills from SPDC operations caused by sabotage and theft also increased to 157 in 2013, compared to 137 in 2012.

The company noted that much greater volumes of crude oil were discharged into the environment away from its facilities, through illegal refining and transportation of stolen crude.

According to the statistics, production losses due to crude oil theft, sabotage and related temporary shutdowns increased in 2013 by about 75 per cent.

On the average, Shell said around 32,000bopd were stolen from its pipelines and other facilities, while it also lost production of about 174,000bopd due to shutdowns related to theft and other third-party interference.

“This equates to several billion dollars in revenue losses for the Nigerian government and the joint venture,” the company said.

Shell said operational spills caused by corrosion, equipment failure or human error accounted for about 15 per cent of the total volume of crude oil spilled from its facilities in 2013.

The company further stated that the number of operational spills over 100 kilogrammes was 30 in 2013, down from 36 in 2012 and 63 in 2011.
However, the company noted that the volume of oil spilled due to operational causes increased to 400 tonnes with around 300 tonnes of this volume from a single spill.

To prevent crude oil spills, Shell said its key priority was to achieve its goal of no operational spills.

“In 2013, we continued work to maintain and replace pipelines and other infrastructure, with 250 kilometres of pipelines and flowlines replaced, following 312 kilometres completed in 2012 and 208 kilometres in 2011. All of SPDC’s major facilities have been certified in line with world-class management systems, with safety and integrity verified through regular assessment and audits,” said the company.

The company also disclosed that its entire area of operations was covered by pipeline and asset surveillance contracts to ensure that spills are discovered and responded to as quickly as possible.

According to the company, these surveillance activities primarily employ the members of the communities the pipeline transverse.

The company also stated that daily over-flights are also carried out to detect new theft points on the pipelines.

“SPDC is continually looking for new ways to make it more difficult for thieves, for example by burying new pipelines deeper or covering them with concrete, securing well heads to make them more tamper proof, making repairs and removing illegal taps.

Despite these efforts, the menace of theft and sabotage persists, with long-term social, economic and environmental implications. Only a concerted response by all stakeholders, including  government, communities and civil-society can end it,” the company explained.

ERA tasks FG on digital metering of oil production

By Jonah NWOKPOKU

The Environmental Rights Action, a non government organization has charged the Federal Government to employ real time digital metering of oil production in order to ascertain the true rate of oil produced in the country and curtail oil theft.

ERA’s Executive Diretor, Dr. Godwin Ojo gave the charge while addressing news men at a media launch recently.

Outlining ERA’s tasks for 2014, Ojo noted that the amount of oil produced in Nigeria is virtually unknown.

According to him, “What we usually hear is that the country produces between an estimated 2.4 million barrels a day. But if  it is true that oil theft accounts for between 400 to 600 barrels of crude stolen, and if it is true that illegal oil bunkering, is higher than the regular theft, then you can now begin to look at the figures. So Nigeria loses on the average, about 2 million barrels of oil per day. So Nigeria may actually be producing about 4 million barrels per day but just declaring what they have sold at the export terminals by the oil companies.

“This year, we want to push that there should be metering, real time digital metering of oil production. From the point of production through transport to the oil wells down to the export terminals, we should be able to measure them through real time digital measuring so that the actual production would be well recorded. This would help Nigeria on two fronts, it will help to save us the ridicule in the world that today, we don’t know the amount of oil produced and secondly, it will improve the economy of this country.”

Ojo also tasked the federal government on social security, saying that it has become imperative since a lot of people have been deprived of their rights and livelihood especially in the Niger Delta region where oil production activities have destroyed the environment, especially farm lands.

“The people in our rural areas have been deprived of their rights and livelihood and in the year 2014, ERA will focus more on actualizing the rights of these local communities. In order to actualise this; we are looking at the national income basic scheme which will serve as a kind of social security and provide a kind of assured income for all Nigerians, especially those who are unemployed.

“This is simply because, some people at the Niger Delta for instance, have had their livelihood destroyed through oil exploration and pollution. Also, if you look at up north and see what is happening there, you will see that that is also a question of livelihood which has been destroyed. In the South West and South East, deforestation and gully erosions have taken over, so what will the people depend on for their livelihood?

“We need the government to address the issue of national income basic scheme. This can be something from N10, 000. 00 or more. Some may argue that the government does not have that kind of money but it’s a question of priority. If things are rightly prioritised by the government, this will be done. What we need to think about is how do we ensure that national basic income scheme becomes a reality? Already there are some states that have begun to pay some stipends to some elderly people and I think the federal government can key into this and give it a legal backing that it depends that this initiative is promoted and make sure that all the unemployed in Nigeria is catered for,” he said.

Speaking further, he said ERA would also look into energy access for the poor.

“In doing this, we are also looking at renewable energy. We want to use this opportunity to commend the federal government for the light up programme that has just been inaugurated, the focus on non-renewable energy in order to produce electricity to rural dwellers. The ERA proudly buys into the operation light up the rural area project.

We want to advise the FG not to approve any energy policy without broad consultation with the people, particularly the civil society. We strongly believe that it is time for non grid electricity. A decentralised energy system that ensures that communities own their own resources, produce and supply electricity and are even able to conduct maintenance on their own,” he said.

- See more at: http://www.vanguardngr.com/2014/02/era-tasks-fg-digital-metering-oil-production/#sthash.nWnV4Woj.dpuf

Between illegal and modular refineries in Niger Delta

Ilegal oil refineries in Nigeria thrive on illegal oil bunkering, stolen crude oil, and vandalism of oil pipelines and other installations. Without a doubt, these illegal oil operations are reprehensible and should not be condoned for a number of reasons.

Firstly, it is improper for citizens of this country to destroy oil installations in their bid to steal crude oil as feedstock for illegal refineries.

Secondly, it is lawless to set up any kind of refinery without going through the licensing process with the relevant government agency – Department of Petroleum Resources, DPR. Thirdly, it is most inappropriate for anybody, Nigerians or Foreigners, to steal crude oil belonging to the Nigerian State with impunity.

Finally, and perhaps the most worrisome is what the illegal oil refiners do with the residue (black oil) from crude oil distillation process. There are serious environmental issues involved regardless of whether they dump the ‘black stuff’ into the river or simply incinerate it.

I recently had a thought-provoking discussion on the issue of illegal refineries with Prof. GoddyIgwe, the Director,Centre for Gas, Refining & Petrochemicals, University of Port Harcourt. However, on further reflection I realized that there may be a few positive lessons to be learnt from these illegal oil operations.

First lesson: there is a significant imbalance between our projected refining capacity and existing capacity, such that it has become very tempting to boil crude oil in drums knowing that there is a guaranteed market for the petroleum products (which they usually sell as diesel, AGO).

Second lesson: small-scale (modular) refineries could be profitably sited close to oil flow stations and terminals. So, I thought that it may be unwise for government to ‘throw out the baby with the dirty bath water’.

Big vs. modular refineries

The capital outlay for any 100,000 barrel per day (bpd) refinery is about $1.5 billion, while a 24,000 bpd modular refinery is roughly $250m. Therefore, it is easier to access funds for the modular refining modules (through US Ex-IM Bank).

The manufacturing time for plant, equipment and machinery for a plant of 100,000 bpd capacity is within the range of three to four years. Start-up for modular refineries of 24,000 bpd is within 18-20 months.

The modular system allows the plant to be expanded to 100,000 bpd capacity in structured increments. The increments can be funded with the cash flows from Phase 1 and additional phases, and so the refinery will not incur additional debt for the expansion. The expansion of the modular plant capacity can be done without shutting down production from existing equipment and plants. This is not the case with big capacity refineries.

Revenue streams and pay-back periods are faster with the modular refining format, than with the larger capacity refineries.

The major short-coming with modular refineries are that the plants are semi-automated and less labor-intensive, i.e. not many jobs can be created directly. For instance, 20 to 30 personnel can operate a 24,000 bpd modular refinery. Most of the spin-off jobs created are of a secondary nature, and based on the location of the site.

In summary, modular refineries are simple, efficient and fast to start up. Such refineries usually operate at optimal capacity at all times. The relatively small investment cost allows for private investors to enter the refining business much easier.

It also enables government to build the bigger capacity refineries using the modular format, but in incremental stages.However, government- built modular refineries should have full conversion facilities (i.e. catalytic reformers and naphtha hydrotreaters) to enable the refineries produce premium motor spirit, PMS or petrol.

National oil refining model

There is a current over-reliance on government- owned refineries. Nigeria can also adopt a refining model that relies on modular refineries (built and operated by private investors) that will produce all refined products with the exception of petrol. The implication is that the modular refinery operators will not have to invest in catalytic converters and naphtha hydrotreaters that are required to convert naphtha to petrol.

These equipments are capital intensive and complex. Therefore, the exclusion of such facilities in a modular refinery plant will further reduce the cost of set-up. This will enable the modular refiners to focus on producing diesel, marine diesel, dual purpose kerosene (DPK), aviation turbine kerosene (ATK), and low-pour fuel oil (LPFO).

On the other hand, Nigerian National Petroleum Corporation, NNPC refineries can focus on PMS production and become essentially transformed into PMS complexes instead of full conversion refineries. In this case, NNPC refineries will buy all the naphtha feedstock from the modular refinery operators and convert these to PMS.

Other products that NNPC refineries can produce will include fuel oil, bitumen, asphalt, and petrochemicals. Based on 60% capacity utilization, NNPC refineries have the capability to process 20.3 million litres of PMS per day. These national refineries can add another 13.8 million litres per day if they are converted into PMS complexes, and thus satisfy the nation’s immediate PMS production needs.

- See more at: http://www.vanguardngr.com/2014/03/illegal-modular-refineries-niger-delta/#sthash.LPGe5Egm.dpuf

Pipeline: Nigeria to save N160bn with security, safety technology

Effective deployment of security and safety gadgets in the monitoring of oil facilities across the country, will help the Federal Government save the $1 billion (N160 billion) it plans to spend on pipeline surveillance.

Speaking at a seminar on ‘curbing losses due to fire and allied claims,’ Mr. Okwy Okeke, Managing Director, Continental Alarm Limited, said the gadgets have been tested by some oil majors in the country and they have proven to be effective in policing the vast network of pipelines and other oil installations across the country.

According to him, the equipment can also be deployed in the power sector, to protect power installations, as well in the manufacturing and telecommunication sectors among others.

He further stated that insurance companies are beginning to groan under the high claims paid out to fire and other allied issues, saying that the security and safety gadgets will help address these.

He said, “Technology has solved many problems in our world, then mobile technology has changed the way we live in Nigeria in the last 12 years or so, and would continue to do so even as the simple Subscriber Identification Module (SIM) embedded  in a plastic is adapted to transmit different forms of data.

“Using a simple smoke detector with an embedded SIM card, many losses due to fire can be curbed just as the auto-tracker has curbed vehicle theft. Our smoke detectors will wirelessly transmit a text message and initiate a phone call to you besides just sounding an alarm in the event that it detects smoke.

“Conventional smoke detectors will sound an alarm on site, but what are the chances that the alarm will be heard and by the right person? For this simple reason, we present the new Videofield Optical Smoke Detector.

“The Videofield Optical Smoke Detector is a simple device that will help insurance companies save on fire and allied claims, and here is the simple reason  fire outbreaks are particularly catastrophic in Nigeria because we do not detect them early enough.

“The device has optical design, which includes Light-Emitting-Diode (LED) and when smoke enters the optical chamber across the path of the light beam, some light is scattered by the smoke particles, directing it at the sensor, thereby triggering the alarm.”

Continuing, he said, “The device is completely wireless, requiring no cables. This smoke detector can be installed in existing houses without fuss or risk of compromising the building aesthetics.”
Other features of the products, according to Okeke, is that it is battery powered by lithium 3.0 volts CR123 battery that could last for up to four years, while the product will send a signal to the control station if it is compromised or tampered with in any form.

- See more at: http://www.vanguardngr.com/2014/04/pipeline-nigeria-save-n160bn-security-safety-technology/#sthash.oMYA4r4C.dpuf

Clearing the Rots in Nigerian Oil Sector

By ifeanyi Nwabugu 

Despite some genuine complaints by some  elements in the country, evidence are bounds that Nigerians had breathe a sigh of relief in the oil sector since President Goodluck Jonathan mounted the saddle of leadership as the President of Nigeria in May 2011. Before Jonathan resumption of office reports of scarcity of petroleum products mostly petrol was talk of the town. Kerosine was out of the common man rich, while gas was nowhere to be found. Vehicle owners queue all day long waiting for petrol, while others did night vigil at the petrol station.

Evidence  also    abound that during the military regimes, there were incidences of pipeline vandalism by unpatriotic citizens who made dubious gains from the petroleum resources including petrol, kerosene and gas and in some cases fire outbreaks from such vandalized pipes claimed several lives and lost of property running into billion of Naira.. The pipeline vandalism persisted unabated until the Nigerian National Petroleum Corporation, (NNPC), was left with the option of completely shutting down the nation’s refineries most of which were not properly maintained at the time. As a result, Nigeria which is the fourth largest crude oil producer within the Organization of Petroleum Exporting Countries, OPEC, could no longer produce fuel for local consumption.

During Olusegun Obasanjo administration, fuel queue which was a major relic of the dark days of the military regimes held sway as hoarding, adulteration and black market selling of products continued. When President Yar’Adua’s came into office, his government initiated measures to revive the moribund refineries but could not achieve much as the petroleum industry in the country was already in a stage of comatose.

Determined to reverse the embarrassing trend, President Jonathan took the bull by the horns immediately he assumed power by initiating several reforms to  reposition the upstream and downstream sectors.  Part of the reforms was to engage an expert in the oil industry to pilot the affairs of the Petroleum Ministry.  He appointed Mrs. Diezani Alison-Madueke.  Until her appointment into the federal cabinet as Minister of Transport in 2007, Mrs. Alison-Madueke who hailed from President Jonathan’s home state Bayelsa, was the first female Executive Director in Shell Petroleum Development Company (SPDC).  She moved to the Ministry of Mines&  Steel Development in December 2008 from where she was appointed Minister of Petroleum Resources in April 2010. President Jonathan appointed Diezani Alison-Madueke based on her good understanding of the petroleum sector and the tremendous cooperation she enjoys from chieftains of the oil industry.

Within the period of President Jonathan, the nation’s crude oil production has been consistently maintained above the budgeted production level of 2.3 million barrels per day. This is direct fallout of the amnesty programme which has now allowed for the renewal of production activities in wells hitherto shut-in as a result of the Niger Delta crisis. Effort at increasing the nation’s stock of crude received major attention under Mrs. Alison-Madueke with the escalation of oil exploration activities in the Inland Sedimentary Basins especially in the Chad Basin. Already the Nigerian National Petroleum Corporation and the Federal Ministry of Petroleum Resources are concluding arrangement for contract award for advanced seismic data acquisition and processing.

In all, the seven in-land basins of Bida, Gongola, Sokoto, Anambra , Dahomey , Chad and Benue are billed to benefit from the programme. Yet the drive to increase the nation’s crude and gas reserve is not limited to the In-land Basin. As part of the effort at growing the capacity of the Nigerian Petroleum Development Company, (NPDC), eight producing blocks have been assigned to the company. With special support by the President for NPDC’s operatorship of the blocks, the impact has been tremendous on the NPDC’s growth aspiration with current production now averaging 80,000 barrels per day.

At the midstream sector gas supply for power generation and industrial use has been sustained with supply outstripping demand both in the Western and Eastern axes. Available records indicate that the volume of gas available for power generation is unprecedented in the history of oil and gas in Nigeria. Renewed efforts at ensuring relevant Gas Supply Purchase Agreements are being executed in order to encourage upstream gas development.  Report has it that as    at the last count-Three Gas Supply & Purchase Agreements (GSPAs) have been signed among buyers, gas suppliers and Aggregator Company (Egbin / Shell / Chevron / PanOcean). Contracts for the critical pipeline infrastructure for gas supply to Alaoji, Olorunsongo have been awarded with projects’ completion in 2012. Upon completion, this would lead to the availability of additional gas to generate extra 2000MW of electricity.

The Brass LNG project is been fast-tracked, while the  implementation of the critical gas projects as encapsulated in the Gas Revolution was given a boost with the visit of the investors (Xenel of Saudi Arabia and Nagajurna of India) to the proposed site at Koko, Delta State for the 1.3 metric tonnes per annum Petrochemical and 1.3 MTPA fertilizer plants. There has generally been increased investor confidence in the Gas Revolution with additional gas utilization projects being pursued. These include:2.75 metric tonnes per annum Dangote Fertilizer plant in Edo State, 2.4metric tonnes per annum Brass Fertilizer plant in Bayelsa State, 1.34 metric tonnes per annum Indorama Fertilizer and 1.2MTPA methanol plants at Eleme, Rivers State  and 450, 000 tonnes per annum methanol plant at Onne, Rivers State  among others.

As for the downstream sector it is evident that products supply has been sustained nationwide through a combination of offshore processing, SWAP arrangements and increased domestic refining. The first 100days has seen the re-streaming of Kaduna Refinery and sustained operation of Warri Refinery. The issue of kerosene availability has been tackled through NNPC direct distribution programme. The integrity of key product pipeline infrastructure (Kaduna-Kano, Kaduna-Gusau, Kaduna-Suleja) has been re-established. The impact of this is that more products are now available in inland depots, which will enable faster intervention when necessary.

Beside the aforementioned achievement of the Federal Government in the oil sector, sustained efforts at increasing local refining capacity, through revamping the existing refineries with a view to increasing their contribution to national demand of petroleum products is on-going. An NNPC team is currently in Japan to conclude the engagement of the original Engineering Procurement Construction, EPC contractor for Port Harcourt Refinery which will be the first to be so rehabilitated.

Already the Nigerian Content Initiative signed into existence on April 22, 2010 by President Goodluck Jonathan is designed to ensure that Nigeria achieves the much desired In-country capacity in the oil and gas industry. This would guarantee that a huge chunk of the estimated $20 billion annual industry spend domicile in the country for the benefit of Nigerians and indigenous Nigerian Companies and Service Providers. Under the watch of the President, the Nigerian Content Development Board, NCDMB, which has the Honourable Minister of Petroleum Resources as Chairman of the Governing Council has ensured the escalation of the historic use of made-in-Nigeria pipelines by Exxon Mobil recently at its Edop – Idoho Offshore field, secured the placement of over 100 kilometers of pipelines orders in Nigeria ’s only pipe manufacturing company, SCC Abuja, ensured the increase of in-country fabrication tonnage from 1,000,000 in 2009 to 1,200,000 currently  and an advanced talks with Jiangsu Yulong of China to establish 250,000 tons per annum LSAW Pipe mill in Nigeria

As for employment in the oil industry, the Federal Government has developed the Nigerian Oil and Gas Employment and Training Strategy, which has resulted in the absorption of over 5,000 engineers, geologists, welders and other skill sets into the industry and formed the basis of a national skill database. Nigerian Content activities have already generated over 30,000 direct and indirect jobs and will surpass 300,000 within the next four years

Jonathan short period in government has witnessed sustained interaction with the National Assembly to ensure passage into law an oil reform legislation known as Petroleum Industrial Bill (PIB)  that will stand the test of time to the benefit of Nigeria , and give fair Return on Investment. Regulatory Control and Monitoring Considerable efforts have been made under the watch of Mrs. Alison-Madueke to ensure effective regulatory compliance in the Nigerian oil & Gas industry in the  areas of  enforcement of flare penalty of $3.50/1000scf to discourage flaring and encourage commercialization of the gas that is being flared, the launch of the “Offshore Safety Permit (OSP)” to account for the safety and competencies of personnel who embark on  swamp, offshore and deep offshore duties in line with the expectation of the Nigerian Content Policy,  the establishment offshore training centre within the Nigeria and completion of a pilot scheme of the National Production and Monitoring system (MPMS) aimed at ensuring independent real time production monitoring and accurate production accounting.

The massive transformation of the NNPC, the passage and implementation of the Nigerian Content Act, the push for the passage of the Petroleum Industry Bill, the implementation of the Gas master plan as well as achievement of improved relations with critical stakeholders across the oil and gas value chain, were among practical measures through which the administration has ensured unprecedented stability in the supply and distribution of petroleum products across the country.

Many Nigerians are of the view that the petroleum sector under Jonathan’s presidency has been recording giant leap forward to the betterment of the country and apart from boosting the nation’s earnings from oil, employment opportunities had been increased.  Within the past one year that the Nigerian Content Act was passed into law, over 30,000 direct employments and training opportunities had been created for Nigerians, making the sector the highest employer of labour.

However, these commendable efforts require sustainability to enable Nigerians continue to benefit from the reforms being implemented by the new administration of President Jonathan.  Therefore, the need to retain Mrs. Madueke in the Petroleum Ministry to continue with the ongoing reforms cannot be overemphasized.  Her administration having shown so much commitment and sympathy to the sector should be allowed to implement ongoing programmes that have succeeded in restoring the confidence of Nigerians and foreign investors in the sector.

President Jonathan has continued to demonstrate his commitment towards improving the lives of Nigerians by ensuring that their basic needs are within their reach. In the petroleum sector, the administration has clearly shown within the past one year that Nigerians can enjoy petroleum products without being exploited by dubious marketers who had made life unbearable for the citizenry for several years. Since this relief came through the instrumentality of Mrs. Alison-Madueke’s leadership acumen in the Petroleum Ministry and with the enormous challenges ahead that requires an expert to surmount, the status quo should be maintained so that various programmes lined up to ensure stability of the petroleum sector are not eroded by putting a square peg in a round hole in the new administration.

Nigeria FG’s Insensitivity to Insecurity and Oil Theft in Rivers State Worrisome

We have watched with amazement, sadness and unpleasant surprise the insensitiveness of the PDP-led Federal Government at the centre under the watch of President Goodluck Jonathan pertaining to the wellbeing of Nigerians, particularly Rivers State and her people. Of particular worry to us is the Federal Government’s deliberate refusal to tackle the twin evil of insecurity and oil theft ravaging Rivers State and other parts of the Niger Delta, which has drastically reduced the revenue accruing to the Federation Account, thereby impoverishing most of the states, thus incapacitating them. As we write, many States are unable to pay workers salaries, not to talk of paying contractors or embarking on any meaningful projects to better the lives of Nigerians.

Our State Governor, Rt. Hon. Chibuike Rotimi Amaechi, had some days ago while hosting the British Minister for Africa and Member of Parliament, Mark Simonds, lamented about this issue of insensitiveness of the PDP Government at the centre to the insecurity and oil theft in Rivers State. According to the Governor, “My administration had procured two surveillance helicopters that would assist the Federal Government to fight oil theft, but shockingly the Federal Government has refused its arrival to the state.

“I don’t know how much you have seen about oil theft, and I don’t know if the Federal Government is serious about combating oil theft. Why I say this is that for two years now, the federal government has refused entry into the country, two surveillance helicopters paid for by the Rivers State Government. These helicopters have cameras and their job is to fly all over and whomever that is stealing oil, you will see. And the helicopter will have a monitor with the Army, Police, Airforce and with the Department of State Security (DSS. I suspect the refusal may be for political reasons…The helicopters have been packed in America for two years now, and the Rivers State Government is paying demurrage on them…But, if you see how much oil we are losing, we hear it is about 7 billion dollars annually, then you will see that we need the helicopters. We paid for it, not the Federal Government, and we are prepared to help them but the President has emphatically refused to allow the two helicopters into the country for the past two years. We are still paying demurrage.”

The All Progressives Congress (APC), Rivers State Chapter, strongly condemns this act of gross wickedness by the Federal Government which raises serious questions about the sincerity of the PDP Government to fight corruption and protect the pipes that transport the crude oil that sustains the country’s economy.

It beats our imagination that the purchase of the helicopters which had the blessing of the Federal Government at the outset should be sabotaged after the Rivers State Government had committed the whopping sum of N30b and is being made to pay demurrage annually. The refusal of the Federal Government to approve the release of these machines into the country that would have benefitted the entire Nigerians is a demonstration of how not to play politics with the life of Nigerians. This is a demonstration of how this government has alienated itself from those it governs and prefers to have our common patrimony kept in private hands while majority of Nigerians continue to wallow in poverty in the midst of plenty.

We are aware of the political differences between President Goodluck Jonathan and Governor Amaechi but must the entire Rivers State people and the rest of Nigerians be punished because of these differences? These days instead of President Jonathan addressing the worsening insecurity in the country that has resulted in the daily killing of unguarded Nigerians, he prefers to celebrate and go about absorbing expired politicians into PDP that Nigerians have rejected because of maladministration by the PDP-led Government. How unfortunate!

We hereby call on the National Assembly to hasten to investigate the helicopter shame and call the misguided Presidency to order before it shipwrecks our nation. We must as well state that we are very sad that the powers of the National Assembly are being eroded as most of its actions and suggestions are ignored at will by the Presidency that has become tyrannical, myopic, imperial, insensitive and uncaring about the plight of Nigerians. We urge the National Assembly, for God’s sake and for the sake of the future of our country not only to exert its powers but also show leadership traits by saving our nation from a misguided and confused Presidency.

Nigerian Soldiers Demolished A Truck Carrying 33,000 Litres Of Illegal Crude Oil In Aba

In a bid to serve a notice of warning to pipeline vandals, Soldiers attached to the 144 Battalion, 14 Brigade Ohafia, Abia State have demolished a truck with no registration number carrying about 33,000 litres of stolen crude oil allegedly gotten from pipeline through illegal means.

247ureports.com gathered that the Mack truck was discovered by the soldiers where it was parked along Udeagbala road located at the Abayi area of the commercial city.

Eyewitnesses hint that for fear of arrest, the driver and conductor of the truck fled before soldiers arrived the place.

In an interview with journalists shortly before the tanker was burnt, Head of the Pipeline Monitoring Unit, Brigadier General Adeosun Lamidi who was represented by Capt. Ibrahim Amaya,  said the tanker was confirmed to convey crude oil stolen from the pipeline because the driver and the conductor escaped as the truck doesn’t have any means of identification.

“We got information about a truck coming from Rivers State conveying crude oil to unknown destination. This is one of the so many trucks we have burnt in Aba and Ukwa area.This is not the first time we are doing this. We have previously set ablaze two long trucks with stolen crude and two container sized truck with locally refined crude oil before now. This is the fourth truck we are setting ablaze this way.”

He warned that the Unit will continue to burn trucks with stolen crude oil to serve as a deterrent to others who would want to rent out their trucks for the illegal business, stressing that the Army have declared a manhunt for the perpetrators..

“Our Commander, Brig. General Adeosun Lamidi is a man known for zero tolerance for pipeline vandalism. As the vandals step up their game, we are also working hard in conjunction with other security agencies to also outsmart them,” Amaya added.

Clark Blames Army Generals for Nigerian Oil Theft

Chief Edwin Clark

By Chuks Okocha and Onyebuchi Ezigbo

A former Minister of Information and Ijawl leader, Chief Edwin Clark, yesterday blamed both retired and serving army generals for the continued oil theft in the Niger Delta region.

Clark passed the blame on them as delegates to the National Conference yesterday continued with their committee report on public revenue, calling for the building of more oil refineries in the country as a solution to the importation of petrol and the reduction of the price of the product.

This, they argued, would stop the funding of importation of fuel and also automatically remove fuel subsidy by the federal government.

Clark, who spoke during the debate on the report of the Committee on Public Finance and Revenue, chaired by Alhaji Adamu Aliero, said the military officers were neck deep in illegal crude oil bunkering in the region.

He said he reported his discoveries to the then President Olusegun Obasanjo who directed his Minister of Defence,  General Theophilus Danjuma, to investigate the issue.

According to the Ijaw leader, “The military officers in Niger Delta region are connected with crude oil theft. I made this point to President Obasanjo and he asked Danjuma, who was the minister of defence then to look into the allegation and he went and found out that it was true.

“So, because of these military officers, either retired or serving, I will suggest that the troops in the region be changed from time to time. In doing so, you will find out that crude oil theft will be reduced.”

Clark who called for the total removal of fuel subsidy, explained how in 1972, as the Commissioner for Finance in the defunct Mid-Western State, travelled with former President Shehu Shagari who was then the Federal Commissioner for Finance to Forcados terminal where Nigeria crude oil was being exported, and discovered that government officials were just interested in what comes to them than protecting the interest of Nigeria.

The Ijaw leader who said it was not known what quantity of crude oil was produced in Nigeria said: “We discovered in 1972 that the government officials, who were there, were more interested in what they could get than protecting the interest of Nigeria, which made it hard to know how much oil was taking away from our shores. It was published in the newspaper; till today, I believe that if you go to Forcados terminal the same story will also be told.”

The Delta State-born elder statesman who noted that the youths of the region only embarked on ‘bucket bunkering’-a small scale bunkering-because they don’t have the technical know-how required for such operation, said the real crude oil thieves are those who came from oversees.

“Secondly, we are talking about crude oil theft, I have always said our young men at home do bucket bunkering. They have no facility and they also lack the technology to operate, but those who steal large quantity of the crude oil are people who come from abroad. Have we forgotten the case where three naval admirals were involved in the deal and were court marshalled?” he asked.

Clark also advocated the inclusion of youths in the communities to protect oil pipelines, saying he once approached President Obasanjo with such proposal.

“Some of our pipelines are 50 years old and when they leak, oil spill everywhere.
In his contribution to the debate, former Secretary to the Government of Federation (SGF), Chief Olu Falae, while defining oil subsidy, said it was what government paid to make the product affordable to Nigerians.

Falae explained that oil subsidy revolved round the domestic price of crude oil and the price at the international market.
He said fuel subsidy would no longer be necessary if Nigeria refines more of its crude oil at home, adding that it will reduce the price subsidy.
Falae told the chairman that: “There should be a recommendation that we refine our crude oil at home and within nine months and use it here at home, this can actually be done and it must be done.”

Also, a South-west delegate, Ayo Adebanjo, said the bottom line of oil subsidy was corruption, stating that subsidy should be removed gradually while efforts should be made to refine more of the crude oil by building more refineries and also making them efficient.

According to him, “It is a shame that a country that has crude oil is importing petrol from other country. I think the government should be bold enough to deal with people who are causing this problem. But unfortunately, some of the people causing the problem are people in government. Mr. Chairman, we must withdraw oil subsidy gradually and then build our capacity to refine oil for our consumption.”

In own contribution, the Chairman of the Transmission Company of Nigeria (TCN), Ibrahim Waziri, said the bottom line to the oil subsidy was nothing but an efficient management of the public finance and revenue of the country.
He cited the case of some government officials with large convoys, which he described as absurd.

Waziri said subsidy was not sustainable, but should be retained with a view of gradually removing it over a moratorium of years, and also with adequate arrangements and preparations which would lead to the phasing out of the petroleum subsidy.

A civil society delegate, Festus Okoye, said any attempt to remove the fuel subsidy now would incite Nigerians against President Goodluck Jonathan.

According to Okoye, “This is because in 2012 when the oil subsidy issue came up, some of the people who advised President Jonathan abandoned him midway, the same people are now advocating for the removal of oil subsidy, in the process, trying to incite the people as the general elections approach. As they also know that the removal of oil subsidy is an emotion and emotive issue which may likely lead to general unrest.”

Another delegate, Col. Tony Nyam (rtd), during the debates of the public finance and revenue, asked the federal government to hands off the collection of Value Added Tax (VAT) as it amounts to “hijacking revenue,” which it has played no part in creating.
Nyam, a delegate of the federal government, said VAT, being a consumption tax on goods, should as a matter of necessity be collected solely by the states from where the value was obtained or the consumption made, particularly when it is the states that bear the cost of infrastructure and other burdens arising from consumption of such goods.

“The federal government needs to discontinue the bad example of not putting to practice, the virtues of the principles of fairness. The government needs also to discontinue its encouragement of sharing rather than baking as it were, the national cake,” Nyam said.

He argued that some  goods, such as alcohol, from which VAT is derived, has been banned in some states of the federation while the VAT collected on them were brought into the general pool to be distributed across board.
According to him, it would only be fair for those states where VAT is derived to collect and utilise such tax.

Nyam also criticised the over dependence of the Nigerian economy on petroleum resources and advised that a deliberate attempt be made to diversify the economy to open up other sources of wealth.

He attributed the alleged high level of corruption in the oil sector on conflict of interest, arguing that the federal government remains an “interested partner” in a strategic national business activities which it was supposed to be a regulator.

Nyam urged the federal government to emulate other countries which have made taxation the main source of generating revenue for public finance. He proposed that rather than the continued dependence on a non-renewable resource like petroleum, the government should make the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS) the main  sources of revenue for the country.

Culled from THISDAY NEWS