Tag: Crude oil

  • ‘Include artisanal refiners in crude oil production’

    ‘Include artisanal refiners in crude oil production’

    The House of Representatives has directed the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to articulate a regulatory legal framework to integrate artisanal refiners into the formal crude oil production value chain in the country.

    This followed a motion by Deputy Minority Whip of the House, George Ozodinobi, on the need to integrate them into the crude oil production chain to avoid further economic sabotage.

    Ozodinobi said it is incumbent to abide by the Constitutional dictate to harness the resources of the nation and to promote National prosperity and an efficient, dynamic, and self-reliant economy.

    According to him, lives and revenues have been lost due to government’s inability to recognise, regulate, and control artisanal refining of petroleum products, which is prevalent in the Niger Delta region for decades.

    He maintained that in 2016, the Federal Government proposed the integration of artisanal refiners into mainstream operations in the oil and gas sector to promote the inclusion of more local content in the industry and advance the use of home-grown technology in the refining of petroleum products in the region.

    Read Also: Tantita Security to N/Delta communities:diversify earnings from crude oil pipelines

    He said that after seven decades of massive devastation and environmental degradation of the Niger Delta with its ecosystem, policymakers are still oblivious to the crucial need to encourage artisanal refining and lay a foundation for the local technology that will salvage us from energy poverty.

    He stressed that the demonisation of the indigenous artisanal refiners as “oil thieves” and deployment of the Nigerian Navy and other security agencies to destroy artisanal refineries in an unprofessional manner further degrade the environment which provides the energy needs of communities in the Niger Delta.

    He said the policy has left Nigeria with four (4) moribund refineries for decades, a globally rated exporter of crude oil and chronic importer of finished petroleum products with a litany of woes as confirmed by the ongoing fuel crisis and validated by the alleged conspiracy against the Dangote Refinery.

    He said the historic reference of industrialisation and technological growth affirms the support and protection of indigenous technology as exemplified by Japan, China, and other Asian economies and even the United States.

  • ‘Crude oil prices may remain high’

    ‘Crude oil prices may remain high’

    Oil prices in the international market may continue to be on the rise. This is going by predictions by researchers at J.P. Morgan.

    “We are turning bullish now as we envisage an emerging supply-demand gap beyond 2025, coupled with strengthening bottom-up sector fundamentals,”the Global Head of Energy Strategy and Head of EMEA Oil & Gas Equity Research at J.P. Morgan, Christyan Malek said.

    The prediction is based on a number of indices considered by the firm. For instance, it noted that in the U.S., the Strategic Petroleum Reserve (SPR) is currently around 40 per cent below the long-term average level of 600 million barrels, just as commercial crude inventories are similarly below historical averages, standing at 418 million barrels as of September 15.

     It therefore noted that going forward, U.S. production is expected to be limited as higher-for-longer interest rates dampen the flow of capital into new supply, shale productivity peaks and operators prioritise shareholder returns over growth.

    In the same vein, analysts at J.P Morgan noted, most of the supply sources elsewhere around the globe are being depleted as fields’ production levels naturally decline and new investments remain limited.

    While the Organisation of the Petroleum Exporting Countries (OPEC) is ramping up production to meet rising demand and accordingly depletes its spare capacity, this introduces an additional risk premium of around $20-$30 per barrel, which usually leads to increased oil price volatility.

    Geopolitical unrest could further elevate oil prices, which recently spiked seven per cent following the Israel-Hamas conflict. “While there are no immediate threats to oil supply, the conflict is a wake-up call about the lack of spare capacity.  We believe this is an example of an emerging risk premium related to diminishing spare oil production capacity, and we expect short-term spikes to continue over the medium term while becoming more sustained,” Malek noted.

    Yet, demand, on the other hand, is rising. J.P. Morgan Research forecasts that world oil demand will reach 106.9 mbd by 2030- an increase of 5.5 mbd from 2023 levels. This is underpinned by population growth and rising energy consumption in developing nations, outweighing the energy efficiency measures being undertaken in developed economies.

    It further noted that rising energy demand places greater pressure on traditional fuels to fill the gap. This is because the clean energy system is not yet mature enough to capture and distribute the significant increase in the generation of clean joules due to supply chain, infrastructure, and key materials bottlenecks. “Generating and distributing the joules necessary to meet global energy demand growth and progressively decarbonize is a multi-decade process,” Malek added. Overall, J.P. Morgan Research estimates that global oil markets could face a 1.1 mbd deficit in 2025, widening to 7.1 mbd in 2030.

    Consequently, oil prices could spike to $150/bbl over the near to medium term and $100/bbl over the long term- above J.P. Morgan Research’s $80/bbl long-term forecast.

    “We believe the global economy is able to withstand triple-digit nominal oil prices, as in real terms such prices remain below the peak levels seen in 2008 and 2011 and are also below the demand destruction zone,” Malek said.

    Read Also: Tantita Security to N/Delta communities:diversify earnings from crude oil pipelines

    On the outlook for energy stocks, J.P Morgan noted that although energy equities have underperformed oil prices in recent months, with Brent up 30 per cent since June, equities have only risen 11-13 per cent.

    It however predicts that the outlook for energy stocks now appears brighter due to a more positive macro outlook, upside risks to earnings per share and attractive valuations relative to the market.

    While there are downside risks linked to a global recession and disappointing economic performance from China, energy stocks should outperform the broader equities market as supply-demand fundamentals remain tight, according to Malek and the Chief Global Markets Strategist at J.P. Morgan, Marko Kolanovic. And in the event that OPEC ups production in the next 12 months, such a move has historically been supportive for energy equities.

    Even as equity valuations face risks from higher-for-longer interest rates, energy stocks tend to be well-positioned, especially as the sector acts as a macro hedge against rising inflation, interest rates and geopolitical risks.

    In light of these factors, J.P. Morgan Research is turning bullish once again on the global energy complex.

  • NEITI blames 79% dip in crude oil production on theft

    NEITI blames 79% dip in crude oil production on theft

    The Executive Secretary of Nigerian Extractive Industries Transparency Initiative (NEITI),  Dr. Orji Ogbonnaya Orji, has attributed the 79 per cent dip in the crude oil production in 2023 to theft.

    Orji noted that the report revealed that in 2023, about 7.68 million barrels of crude oil were either stolen or lost, a 79 per cent drop compared to the figure recorded in 2022.

    He urged civil society organisations (CSOs) to monitor the government’s strategies to combat oil theft and advocate for stronger environmental protections.

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    Orji made this statement while delivering a keynote speech at the opening of the three-day Civil Society Roundtable on the EITI Framework in Abuja.

    He said regarding revenue losses and underreporting, Orji said the report disclosed that outstanding collectible revenues due to the Federal Government amounted to over $6.071 billion and N66.4 billion.

     The sustainability, progress, and future growth of Nigeria’s extractive industries depend on active civil society participation and engagement.

  • Crude oil production dips by 26391b/d in September

    Crude oil production dips by 26391b/d in September

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said Nigeria’s crude oil and condensate production declined by 26,391barrels per day from 1.57 million barrels per day (mb/d) in August 2024 to 5.44mb/d.

    This was contained in its crude oil production report of September 2024.

    The data said in the period under review, the country produced 1.32mb/d crude oil , 57,774b/d blended condensate, and 162,223b/d unblended condensate.

    The reduction in output in September may not be unconnected with crude oil theft, vandalism, and illegal refining in the Niger Delta.

    Only last week, the Nigerian National Petroleum Company Limited (NNPCL) said security operatives uncovered 66 illegal crude oil refineries and 21 illegal pipeline connections in the region.

    The national oil company  broke the news in its documentary titled: “The War on crude oil theft 21st to 27th September, 2024.”

    It said: “In the past week, 21 illegal pipeline connections and 66 illegal refineries were uncovered.”

    Boasting of its determination to sustain onslaught on the perpetrators, NNPCL said the war on crude oil theft is on, and the industry wide security collaboration on hydrocarbon infrastructure continues to record remarkable progress.

    According to the documentary, in the week under review,  a total of 172 incidents were recorded across the Niger Delta region.

    These incidents, said the national oil company, were detected and reported by NNPC Command and Control Centre, NNPCL 18, Tantita Security agency, Shell Petroleum Development Company, Pipeline infrastructure Nigeria limited, Maton Engineering Ltd, and government security agencies.

    Read Also: Dangote to begin crude oil production soon-Report

    NNPCL stressed that in the heart of the Nigerian Delta region, the number tells all the story of an ongoing struggle.

    It revealed that 61 incidents were recorded in the central corridors, 59 in the eastern corridors,19 in the western corridors, and 33 in deep blue waters.

    The crack team of security forces, said NNPCL uncovered a web of illegal connections running deep into the heart of the Niger Delta region.

    It also said from Owada in Abia State to Biseni 11, Brass and around the Okpotuani axis in Bayelsa State, these secret pipelines were shutdown one by one, and repairs were made.

    NNPCL disclosed that in places like Odioma and Obiokuin Bayelsa State, security forces struck hard destroying make-shift refineries that polluted the land for far too long.

  • FPSO in Lagos to increase oil output with 40,000bpd

    FPSO in Lagos to increase oil output with 40,000bpd

    The Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri has said the Floating Production Storage and Offloading (FPSO) facility in Lagos, a joint venture between NNPC Limited and Century Nigeria Limited, in partnership with WAEP and ENSERV, has the potential to boost Nigeria’s crude oil production by an additional 40,000 barrels per day.

    He lauded the progress of work on the during an inspection visit to the site.

    Lokpobri expressed satisfaction with the strides made so far, according to a statement by his Special Adviser on Media and Communication, Nneamaka Okafor in Abuja on Saturday.

    The FPSO project is one of the measures arising from the Minister’s engagement with NNPC Limited in line with President Bola Ahmed Tinubu’s directive for increased production and it is strategically designed to enhance local capacity and drive further investments into the nation’s oil sector.

     He commended the collaboration between NNPC, Century Group, and other partners, identifying the project as a critical element in Nigeria’s efforts to significantly increase crude production and meet global demand.

    Read Also: Bayelsa oil-bearing community protests, decries 22 years of neglect by oil firm

    “The work being done here is a reflection of the kind of investments we want in the oil sector. With projects like this, we are not only building local capacity but also expanding our crude production beyond current quotas. This facility alone will contribute an additional 40,000 bpd, which is a step in the right direction for our economy,” the Minister said. 

    He further underscored the importance of increasing Nigeria’s oil output, highlighting the government’s commitment to supporting partnerships that aim to revitalize the sector. “Our goal is to see Nigeria produce well above its current quota, and this project exemplifies the kind of investments that will help us achieve that,” Senator Lokpobiri added.

    Speaking on behalf of Century Group, Mr. Ken Edward Etete, the Group Chairman, provided insights into the progress and upcoming milestones for the project. “We have several upgrades ongoing at the FPSO facility, and we are setting targets for various stages of the work. We are on track to complete everything within the first quarter of next year,” Etete said. 

    He emphasised that these upgrades would not only enhance operational efficiency but also position the facility as a key contributor to Nigeria’s energy sector.

    The Minister commended the management team for their dedication to ensuring the project’s timely delivery and urged them to maintain their commitment. He further reaffirmed the government’s readiness to support similar initiatives aimed at enhancing Nigeria’s oil production capacity.

    The FPSO project stands as a testament to the power of partnerships in the oil and gas sector, with its successful completion set to make a significant impact on Nigeria’s economy and global energy positioning.

  • FG begins sale of crude oil, refined petroleum products in naira

    FG begins sale of crude oil, refined petroleum products in naira

    Nigeria has officially commenced the sale of crude oil and refined petroleum products in Naira.

    A statement from the Ministry of Finance yesterday said the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced that the implementation of this a significant initiative, approved by the Federal Executive Council (FEC), started on October 1, 2024.

    Speaking after a post-commencement review meeting, chaired by the Minister, Edun disclosed that key stakeholders had assured of the commencement of this strategic initiative.

    The review meeting was held to assess the progress of the “Crude Oil and Refined Products Sales in Naira” initiative, and the consensus reached highlighted the government’s commitment to seeing the plan through.

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    “The sale of crude oil and refined products in Naira has officially begun as directed by the Federal Executive Council. This initiative marks a bold step towards economic sustainability and currency stability,” Edun stated.

    Last month, the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency revealed that President Bola Ahmed Tinubu had given the green light for crude oil to be sold to local refineries in Naira. This decision, according to the committee, will also apply to the purchase of petroleum products.

    According to the committee, from October 1, 2024, the Nigerian National Petroleum Company (NNPC) commenced the supply of approximately 385,000 barrels per day (bpd) of crude oil to the Dangote Refinery, with payments made in Naira. This partnership is expected to reshape Nigeria’s oil and gas landscape, as the Dangote Refinery, located in Lekki, Lagos, is Africa’s largest oil refining facility, valued at over $20 billion.

    The government had previously outlined that this initiative would reduce pressure on the Naira, eliminate unnecessary transaction costs, and ensure a steady supply of petroleum products across the country. This innovative approach is expected to improve the country’s macroeconomic indicators, including foreign exchange reserves.

    Chairman of the technical committee and FIRS boss, Zacch Adedeji, had earlier explained that under the initiative, crude oil would be sold to the Dangote Refinery in exchange for refined petroleum products such as Premium Motor Spirit (PMS) and diesel. These products would then be supplied to the domestic market for distribution, with payments also made in Naira.

    “Diesel will be sold in Naira by the Dangote Refinery to any interested off-taker, while PMS will only be sold to NNPC, which will then distribute it to various marketers,” Adedeji explained. Additionally, all regulatory costs associated with the operation, including fees for the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), will be paid in Naira.

    In a bid to ensure a seamless implementation of the initiative, a one-stop shop is being established to coordinate services from regulatory bodies, security agencies, and other stakeholders involved in the process.

    The meeting, which solidified the operational framework, brought together notable figures including the Minister of State for Petroleum (Oil), the Special Adviser to the President on Revenue, the Special Adviser to the President on Energy, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), representatives of the Dangote Group, and top management of the NNPC, led by the Group Chief Executive Officer (GCEO).

    This strategic initiative, introduced by President Bola Ahmed Tinubu’s administration, is poised to have far-reaching impacts on Nigeria’s economy. As the country navigates the challenges of global energy markets, the naira-for-crude plan is seen as a critical step in fostering economic growth, stability, and self-sufficiency. It is expected to reduce the nation’s reliance on foreign exchange transactions for crude oil sales, ultimately positioning Nigeria for long-term success in the global energy landscape.

  • Nigeria begins sale of crude oil, refined petroleum products in Naira

    Nigeria begins sale of crude oil, refined petroleum products in Naira

    Nigeria has officially commenced the sale of crude oil and refined petroleum products in Naira.

    A statement from the Ministry of Finance on Saturday said the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced implementation of the initiative approved by the Federal Executive Council (FEC) started on October 1, 2024.

    Speaking after a post-commencement review meeting, Edun disclosed key stakeholders assured of the commencement of the strategic initiative.

    The review meeting was held to assess the progress of the “Crude oil and refined products sales in Naira” initiative and the consensus reached highlighted the government’s commitment to seeing the plan through.

    “The sale of crude oil and refined products in Naira has officially begun as directed by the Federal Executive Council. This initiative marks a bold step towards economic sustainability and currency stability,” Edun stated.

    Last month, the Technical Sub-Committee on Domestic Sales of Crude Oil in Local Currency revealed that President Bola Ahmed Tinubu had given the green light for crude oil to be sold to local refineries in Naira.

    This decision, according to the committee, will also apply to the purchase of petroleum products.

    According to the committee, from October 1, 2024, the Nigerian National Petroleum Company (NNPC) commenced the supply of approximately 385,000 barrels per day (bpd) of crude oil to the Dangote Refinery, with payments made in Naira. This partnership is expected to reshape Nigeria’s oil and gas landscape, as the Dangote Refinery, located in Lekki, Lagos, is Africa’s largest oil refining facility, valued at over $20 billion.

    The government had previously outlined that this initiative would reduce pressure on the Naira, eliminate unnecessary transaction costs, and ensure a steady supply of petroleum products across the country. This innovative approach is expected to improve the country’s macroeconomic indicators, including foreign exchange reserves.

    Read Also: FG recognises outstanding young achievers

    Chairman of the technical committee and FIRS boss, Zacch Adedeji, explained that under the initiative, crude oil would be sold to the Dangote Refinery in exchange for refined petroleum products such as Premium Motor Spirit (PMS) and diesel.

    These products would then be supplied to the domestic market for distribution, with payments also made in Naira.

    “Diesel will be sold in Naira by the Dangote Refinery to any interested off-taker while PMS will only be sold to NNPC, which will then distribute it to various marketers,” Adedeji explained.

    The meeting, which solidified the operational framework, brought together notable figures including the Minister of State for Petroleum (Oil), the Special Adviser to the President on Revenue, the Special Adviser to the President on Energy, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), representatives of the Dangote Group, and top management of the NNPC, led by the Group Chief Executive Officer (GCEO).

  • FG raises committee to resolve crude oil supply issues to refineries

    FG raises committee to resolve crude oil supply issues to refineries

    The Federal Government has raised a committee on the resolution of pending issues hindering Oil Producers Trade Section (OPTS) and the Independent Petroleum Producers Group (IPPG) from supplying crude oil to local refineries such as Dangote and others.

    Rising from a meeting with the groups in Abuja, the Minister of State for Petroleum Resources (Oil) Senator Heineken Lokpobri, said the committee which is headed by the Permanent Secretary Ambassador Nicholas Ela, is expected to submit its report on Tuesday.

    He said the meeting with the OPTS and IPPG resolved most of the grey areas that emanated from the misunderstanding of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) policy on Crude Oil Supply Obligation implementation. 

    The policy is enshrined in section 109(2) of the Petroleum Industry Act (PIA).

    His words: “The reason why we are gathered here today: we feel we should discuss a very important issue in the oil industry. There seems to be some misunderstanding of regulation made by NUPRC.

    “That has to do with domestic crude oil supply obligation by oil companies. And as part of our policy here in the ministry that whenever there is a seeming misunderstanding we bring parties together with a view to resolving whatever misunderstanding parties will have.

    “And that is why we are gathered here today to discuss on issues raised by both OPTS members, who are the international oil companies and the IPPT members who are the indigenous oil companies.

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    “And at the end of the day, we were able to agree except for one or two grey areas. So what we have resolved is that there should be a small committee to be  headed by the Permanent Secretary that will look at the matter between Monday and Tuesday and report back to me.”

    Lokpobri said the despite speculations and misunderstanding of the NUPRC policy implementation, the government is committed to supplying crude oil to support domestic refineries.

    He expressed government readiness to create a globally competitive environment that can allow the sector thrive.

    The minister said since the sustainability of the industry growth is the policy trust of the government, he has always brought parties together to resolve nagging issues.

    He said issues that the parties have resolved we’re what  people considered irreconcilable in the industry.

    The minister said the oil firms in the country are committed to the successful implementation of the domestic crude oil obligation policy.

    Lokpobri said: “We can inform them here that look, contrary to whatever opinion you people may have, one, we are committed to support local refining.

    ” We are also committed to ensuring that we create an environment that is globally competitive to allow operations in the oil and gas sector to continue. And that is essence of government.

    “And that is why since we were appointed that has been a major policy trust that wherever there are issues we sit down and resolve the issues.

     Gentlemen of the press, please report to Nigerians that there is no disagreement.

     “Those issues that people thought were very fundamental issues have  all been agreed and all of us are committed, all the companies in Nigeria are committed to ensuring that we meet that part of the PIA that has to do with domestic crude oil supply obligation.”

    Those that attended the meeting were Green Energy International Limited, Chief Executive Officer, Prof. Anthony Adegulugbe; Seplat Energy Plc, Mr. Roger Brown; AA Holdings & EVC Platform Petroleum, chairman, Mr. Austin Avuru; IPPG Secretariat, Executive Coordinator, Oyeleke Banmeke and others.

  • Crude oil theft as response to state tyranny

    Crude oil theft as response to state tyranny

    “The rights of man come not from the generosity of the state but from the hand of God” – John F. Kennedy’s inaugural address January 20, 1961.

    Leaders must resist playing God as President Olusegun Obasanjo tried to do by dismissing the anger and anguish of impoverished people of Niger Delta in 2001. Crude oil theft, illegal refineries, vandalisation of oil pipelines and violence against foreign oil operators are but natural responses to disdain for ‘distributive justice”, equitable allocation of assets in society or as Aristotle puts it, ‘treating equals equally”.

    Conceptually, ‘fuel theft’ in the Niger Delta is a misnomer. For the leading lights and the warring militants of the ‘scorched land’ Niger Delta, whose region has been reduced to by crude oil merchants, it is a euphemism for resource control.

    And their reasoning is unassailable. The majority of the people of the region are extremely poor without access to basic necessities of life. Their air is polluted, their rivers poisoned and their land abused. Their youths including “General Loaf” in the words of Pa Edwin Clark, ‘have no education and are unemployable’. Adults can neither fish nor farm. Children with brownish hair are a sad reminder of acute malnutrition. 

    And it is not of any relief that they alone carry the burden and hazards of their environment while a few reap its benefits.  While they have no bridges over their rivers, those enjoying the environmental benefits of their land built ‘bridges over land’ in state capitals across the nation including Abeokuta, a city built on the rock and Kano on the edge of the Sahara desert.

     Oil theft in the Niger Delta can therefore be seen as a protest against the tyranny of the state especially when President Obasanjo, a personification of the state, contemptuously breached section 162 (2) of the 1989 constitution which declares that “the principle of derivation shall be constantly reflected in any approved formula as being not less than 13 percent of the revenue accruing to the Federation Account”

    Crude oil theft in the Niger Delta is therefore beyond finger pointing as Tony Elumelu, a representative of Nigerian elite who always try to play the ostrich instead of calling a spade by its name tried to do in his interview with Financial Times some two weeks back. It is not enough to demonise the federal government when both the federal and Niger Delta leaders are tarred with the same brush.

    For instance, just as Elumelu was pointing fingers, the Nigerian National Petroleum Company Limited (NNPCL) was also speaking  of 63 illegal refineries discovered and confiscated in one week in  Bayelsa, Rivers, Abia, Imo and Delta states,  177 incidents of oil theft  recorded between August 3 and 9 by different incident sources and 17 vehicular arrests  made in communities in Mosogar, Oleh, and Amooe in Delta State, Imiringi in Bayelsa State, Korokoro and Akwa Odogwa in Rivers State, and in Akwa Ibom State. The 15 wooden boats conveying stolen crude that were confiscated, in Rivers and Bayelsa states and 19 illegal pipeline connections recovered, during which some underwent repairs across several locations in Bayelsa and River states.

    The fact that all the Niger Delta governors, their state assembly lawmakers, LGA chairmen, councillors  and National Assembly legislators live within the above identified crime scenes only validate the thesis that the parasitic bug that feeds on the vegetable lives within the vegetable.

    But perhaps to underscore how critical crude oil theft symbolizes symptoms of our crisis of nation-building, requiring urgent political solution, we need to take a journey through memory to remind ourselves where the rain started to beat us.

    The Nigerian elite (political, economic, intellectual and the military), the scourge of Nigeria, lured the military into politics. And because the military was ill-equipped and ill-trained to manage a multi-cultural and a heterogeneous society, they soon plunged the country in to a civil war. Desperate to generate revenue to prosecute the war, they embarked on promulgation of decrees including that on-shore and off-shore dichotomy and those that set aside revenue allocation based on derivation, a critical element in our founding fathers’ decision to form a federation of Nigerian ethnic nationalities.

    The confiscation and centralization of resources of the regions that aided their victory during the war was retained by successive military regimes. In the 1979 constitution, Ben Nwabueze and Rotimi Williams whether driven by their ideological beliefs in strong centre or doing the bidding of a military, retained the military era revenue allocation structure.

     The 1999 constitution, often dismissed as Abdulsalami Decree 24, with all its imperfections reluctantly allocated 13% derivation to the oil producing states despite stiff opposition from northern politicians.

     Obasanjo in 1999, perhaps to please the opponents of the 13% derivation who were mainly northern politicians that imposed him on the west and went on to put him power, instead of paying the 13% approved by the constitution, opted to dispatch Bola Ige, his Attorney General and Minister of Justice to seek the interpretation of totally unrelated on-shore and off-shore dichotomy at the Supreme Court in February 2001. Obasanjo’s victory at the apex court on April 5, 2002 reduced the 13% constitutional provision by as much as 7.5%.

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    People of Niger Delta felt betrayed by their president with  the Ijaw National Congress (INC) declaring Obasanjo’s action as “a declaration of war against the defenceless people of Niger Delta”(Vanguard, April 20, 2002) and the Niger Delta Youth Congress (NDYC)  threatening “to renegotiate their membership or otherwise withdraw from a Nigerian federation which has its laws and constitution significantly skewed in favour of an unnecessarily large, powerful and domineering central government”.(Punch, April 20 2002)

    Renewed attack on oil facilities and kidnapping of oil executives soon began. Obasanjo’s side-lined VP Atiku Abubakar, joined forces with James Ibori and other Niger Delta states governors to threaten Obasanjo’s second term ambition.  This threat forced Obasanjo to send a bill to the National Assembly to abrogate the onshore and offshore dichotomy. But it was too late. The militants had realized their potential to wreck Nigerian economy.

    Yar’Adua presidency was forced to set up the Amnesty Programme and deploy Vice President Goodluck Jonathan to go and appeal to the conscience of his constituency in the creeks. There were new undertakings including the establishment of a new free trade zone in Ogidigben, Delta State, with world-class petrochemical and fertilizer plants and creation of over five million jobs across the value chain. The Amnesty Programme and Jonathan interaction with his people helped to increase oil production from pre-amnesty level of 700,000 to about 2,500,000 barrels per day.

    Despite the Amnesty Programme, the silent war against the federal government continued. As late as 2013, Ngozi Okonjo-Iweala,  from her far away World Bank and the International Monetary Fund meeting in New York, admitted to the federal government’s loss of  about 300,000 barrels daily, or $1billion (N155 billion) revenue monthly. According to her  “a great deal of loss in production is also closely linked to illegal bunkering, and oil theft  which  were getting more evasive as the criminals were going beyond the outer pipelines and moving into more sensitive pipes.’ (The Premium Times April 18, 2013).

    The 2015 presidential election that pitched President Jonathan, a Niger Delta candidate against Buhari, a Fulani man was turned to an indirect battle for resource control.  Niger Delta politicians led by Nyesom Wike appealed to the sentiments of their people by painting Buhari as an outsider coming to take control of the resources of Niger Delta.  The Niger Delta militants saw Jonathan’s loss as a licence to continue sabotaging the economy of the country. The effect was that crude oil export never moved beyond 50% of what obtained during Jonathan presidency.

    Not much has changed under Tinubu presidency. In fact the sabotage of the oil sector and the economy started with Godwin Emefiele, the CBN Governor and Niger Delta indigene who was an aggrieved aspiring APC candidate in the election. Graduates of the Amnesty Programme that received technical professional training abroad are today believed to be fronting for their leaders, their collaborators outside the state and international criminal gangs to resist the tyranny of the state by taking what they believe rightly belong to them.

    With over 600,000 barrels of crude oil stolen daily, with over a thousand of unresolved cases of crude oil theft pending in the courts with a hundred new daily discovery by an overwhelmed and poorly paid security personnel that many believe may not be able to refuse inducement, it has become apparent that solution to crude oil theft is not judiciary but politics. The country will be better off by adopting fiscal federalism that allows the oil producing areas retain 50% of generated revenue as was the case in the first republic.

    And the cheapest way to go about it according to Chief Olu Falae, “is going back to the Independence Constitution which our leaders negotiated with the British between 1957 and 1959. It was on that basis that the three regions agreed to go to independence as one united country”.

  • Army recovers 238,500 litres of stolen crude oil in three states

    Army recovers 238,500 litres of stolen crude oil in three states

    The 6 Division, Nigerian Army has recovered about 238,500 litres of stolen crude oil from suspected oil thieves in Bayelsa, Delta and Rivers states.

    Lt.-Col. Danjuma Danjuma, the division’s Spokesman, told reporters in Port Harcourt yesterday that the crude oil was seized from trucks and illegal refining sites in the states.

    He said five suspects who were apprehended would soon be prosecuted.

    “These seizures are part of ongoing efforts to combat oil theft and illegal bunkering of petroleum products in the Niger Delta,” he said.

    Danjuma said110,000 litres of crude oil stored in an oven and a massive metal reservoir were discovered at an illegal refining site along Dasaba Creek in Bayelsa.

    The spokesman added that troops of the 16 Brigade intercepted a truck with registration number, UDH 983 XR on Elebele-Emeyal Road, Ogbia, carrying 30,000 litres of stolen crude oil.

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    He said acting on intelligence, soldiers, traced inter-connected hoses from the Indorama Petrochemical pipeline, Eleme, Rivers, to a tank located in the bush.

    “More than 33,000 litres of crude oil, two pumping machines, a long hose and 11 drums used for the crime were recovered from the site.

    “At Cawthorne Channel 1, troops, collaborating with other security agencies, deactivated an illegal refining site containing more than 5,500 litres of crude oil.

    “The site is located near Well Head 8, behind Glisten Community in Degema Local Government Area of Rivers,” he added.

    The army image maker further said 63 Brigade troops seized 30,000 litres of crude oil from a truck during a routine patrol in Mosogar, Delta.