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Tag: Oil theft

  • Oil theft: Between economic gains and deterrence

    Oil theft: Between economic gains and deterrence

    The onslaught against crude oil theft has been reinvigorated with the security personnel recording impressive results. However, stakeholders warn that there is a need to distinguish between legitimate and illegitimate oil businesss. Besides, economic and environmental experts, among others, insist that there are grave consequences ahead if the process of seizure and destruction of such vessels are not properly guided. MUYIWA LUCAS reports.

    The country’s security forces are furious. Their fury stems from the continued operations of economic saboteurs in the mold of crude oil thieves who have perfected their criminal activities that are bleeding the country’s finances and throwing it into a quagmire.

    Not only has this sordid act denied the country of valuable revenue, it has also boxed her into a corner such that in the last five years, the allocated crude oil production output to the country by the Organisation of Petroleum Exporting Countries (OPEC), has not been met as a result of crude oil theft and other leakages in the system.

    A peep into the loss inflicted by oil theft is well captured in a March 2022 Oil and Gas Industry Report of the Nigeria Extractive Industries Transparency Initiative (NEITI). The five-year report, showed that 272.2 million barrels (mmbbls) of crude oil was lost to mainly oil theft between 2016 and 2020.

    Then, this volume loss amounted to $14.65 billion based on the prevailing international crude oil price in those times. Specifically, losses recorded in 2016 was about 101.05 mmbbls; in 2017, it was 36.46 mmbbls; 2018, 53.28 mmbbls; 2019 recorded 42.25 mmbbls loss and in 2020, 39.16 mmbbls.

    Read Also: Oil theft: Navy to extend surveillance to creeks

    The immediate past Speaker of the House of Representatives, Femi Gbajabiamila, drawing from a report submitted to him, also expressed concerns over a $23 billion loss looming over the country as a result of the activities of crude oil thieves.

    It is, therefore, instructive that the security forces have moved in to stem this tide, recording successes in the fight against the oil marauders. For instance, last month, the Nigerian National Petroleum Company Limited (NNPCL) said a private security contractor, Tantita Security Services, owned by former Niger Delta militant Chief Government Oweizide Ekpemupolo, popularly known as Tompolo, had intercepted a suspicious vessel with a cargo of crude oil on board.

    “The vessel, MT Tura II (IMO number: 6620462), owned by a Nigerian company, Holab Maritime Services Limited with Registration Number RC813311, was heading to Cameroun with the cargo on board when it was apprehended at an offshore location (Latitude: 5.8197194477543235°, Longitude: 4.789002723991871°), with the captain and crew members on board,” it said.

    According to the NNPCL, investigations showed that the crude oil cargo was illegally sourced from a well-jacket offshore in Ondo State, as there was no valid documentation for the vessel or the crude oil cargo onboard at the time of the arrest.

    “Further investigation into the activities of the vessel at the NNPC Limited Command and Control Centre also revealed that the Vessel has been operating in stealth mode for the last 12 years. The last reported location of the vessel was Tin Can Port in July 2011,” the statement said.The arrested vessel was subsequently set ablaze with its 150, 000 metric tonnes of crude oil.

    Earlier this month, another vessel bearing a Togolese flag for transporting stolen crude in  Koko, Delta State, was purportedly arrested by the same  private security outfit, TSS. The TSS said the 1, 117 tons vessel was carrying about 8,100 barrels of crude, and was being escorted by some naval officers led by a senior commander.

    Recall that last October, security agents also destroyed a vessel used for crude oil theft off the Niger Delta creeks after the vessel was reportedly arrested by Tompolo’s firm.

    However, the Navy said the vessel was certified by the government agency for regulating midstream and downstream petroleum operations in Nigeria.

    “MT Praisel was duly approved by Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)” to load 1,114,721 Litres of High Pour Fuel Oil (HPFO) from Greenmac Energy Storage/Tarus Jetty Koko from July 26 to August 8, 2023.

    On August 5, the Air Component of Operation Delta Safe (OPDS), destroyed three boats loaded with stolen crude and another illegal refinery with reservoir and tanks in Rivers State.

    The Director of Public Relations and information, Air Cdre Edward Gabkwet, in a statement, said one of the operations took place at about four Nautical Miles Southeast of Bille, a riverine area located west of Bonny Island and South of Port Harcourt, in Rivers State.

    According to him, the NAF aircraft on surveillance sighted three boats tapping crude oil from a pipeline.“Consequently, the boats were engaged and destroyed by the aircraft. Again, flying towards Port Harcourt, the crew also observed an active illegal refining site with tanks and reservoirs loaded with suspected refined products, about four miles Southeast of Idama in Rivers State. The site was also attacked and destroyed,” he said, adding that air strikes against economic saboteurs would be sustained until they desist from their acts of thievery and sabotage.

    But experts and stakeholders have expressed divergent views over the destruction of crude oil alongside the vessels arrested. While some are in agreement, saying it would send a strong message to perpetrators of the crime, others see it as a loss to the country, insisting that there is a need to distinguish between oil theft and genuine participants in the business. Yet, for others, it is an attack on the environment.

    The Executive Director, Environmental Rights Action/Friends of the Earth Nigeria (ERA/FoEN), Mr. Chima Williams, rued the implication of such exercise. According to him, destroying and wasting stolen crude, is a disfavour to the economy, as such crude could generate funds that would build infrastructure and better lives.

    “Destroying badges of crude that runs into millions is equivalent to denying the nation and its people of the revenue that can be derived from such large amounts of crude. This is a country in dire need of resources to rebuild the economy, to build infrastructures and to better the lives of the people. The country is in heavy debt, yet we are destroying sources of enhancing our economy. The burnt vessels can be transformed into other uses like enhancing the work of seafarers in the country,” he noted.

    Williams further argued that the burning of crude oil laden vessels released a high level of chemical content into the water bodies that destroys the eco lives and aquatic organisms that humans need to survive.

    “Destroying such vessels with their crude contents produces high level chemical debris that follows tidal movement to other parts of the country. This kind of devastation destroys the aquatic organisms needed to satisfy man’s nutritional and survival needs,” he added.

    An Abuja-based public affairs analyst, Akintayo Balogun, also described as economic waste the destruction of crude oil seized from oil burglars as a wasteful, unnecessary, and a very bad decision economically, environmentally, psychologically, and unwise.

    “The revenue that the nation should have generated vide the said crude oil is being thrown away for nothing. Nigeria is in serious debt and has spent the last eight years living on borrowed funds. While this is the situation, Nigeria is carelessly throwing away the bath water and the baby. This ought not to be,” he noted in a statement.

    Another public analyst, Mayowa Sodipo, noted that there was the need to define what constitutes crude oil theft and licenced operators. He explained that the conflicting positions held by the TSS and the Navy over the arrest of the vessel MT Praisel should serve as the reason restraint should be further exercised in destroying vessels alleged to be involved in oil theft.

    “TSS said the vessel MT Praisel was arrested for crude oil theft and was led by a Naval officer guiding it, but the Navy came out to explain that the vessel had permit to load crude oil. Suppose due diligence was not carried out to ascertain the truth what and the vessel was burnt, who bares the loss?” Sodipo asked.

    Process

    Under the terms and conditions for the sale and purchase of crude oil, Part II of the contract for 2021-2023, Section 5.2.1 under  “Vessel Vetting/Clearance” stipulates that each vessel, which is to load crude oil pursuant to the contract shall be nominated in writing by the buyer to the seller not later than 30 days before the first day of the date-range in which the buyer wishes to lift crude oil. Such notices shall specify the following: The name of vessel, date built and flag; the vessel’s dimensions and other specifications, which shall be within the maximum and/or minimum limits specified by the seller from time to time and shall satisfy the standards and regulations of the terminal operator at the relevant time. It shall further indicate the quantity and grade(s) of crude oil to be delivered, the co-loading date and crude stream of co-loads (if any). There shall be at least 24 hours’ time allowable between co-loads of different crude streams.

    Section 5.4 on “Documentation instructions” says the buyer shall submit in writing to the seller, documentation instructions not later than 10 days before the first day of the date range in which the buyer wishes to lift crude oil. Such documentation instructions shall specify the following: vessel name; quantity to be loaded; crude oil grade/stream; SDWT; IMO Number; Draft; LOA; Beam; Flag of vessel; Year built; the ETA of the vessel.

    Clearly, it further stipulates that any deviation exceeding six hours from the original ETA or where any delayed arrival of the vessel will prevent her from being berthed or moored the same day due to any night–time navigational or any other applicable restrictions shall immediately be advised by buyer to seller and terminal operator supported with reasons for such deviation or delay.

    Given these stipulations, stakeholders have continued to wonder why crude oil theft thrives because if these regulations are adhered to, then no vessel could have made it to the loading vicinity as they are expected to have transmitted their documentations ahead of time.  

  • Oil theft cost Nigeria N995.2b annually 

    With the country losing over N995.2 billion annually due to oil theft, the economy is doomed, New Nigeria Foundation (NNF), a nongovernmental organisation has said.

    Addressing participants at the advocacy programme for media practitioners in Lagos recently, NNF Programme Manager, Chikodi Amadi-Chiedo said oil theft had grave socio-economic consequence for the country.

    She said if the trend was not addressed, it would shrink the country’s wealth with dire implications.

    According to her, losing 400,000 barrels of oil on daily basis due to activities of unscrupulous elements was not in the country’s interest.

    Amadi-Chiedo added that most of the products are lost through pipeline vandalisation, illegal bunkering and over lifting of oil.

    The stolen oil, she maintained found their ways into neighbouring countries, black market and the open market. She noted that some of the illegally acquired oils are adulterated because of the process they pass through.

    She explained that over 70,000 KM of land is under threat due to activities of illegal oil exploration, stressing that the Niger Delta is the worst hit due to crude oil theft activities.

    According to the oil expert, life expectancy had reduced disproportionately, noting that all hands must be on the deck to make life better for people living in the region, where the illegal crude oil refineries is thriving.

    “The Niger Delta problem is a national problem. It is not a problem that you leave to the people in the region. Nigerians must all be involved because it is like a time bomb waiting to explode.

    “Oil in the Niger Delta finds its way to the markets through channels that are unconventional. The process is open to bribery and corruption. The unemployment rate in the area made the case almost implacable. The youth find illegal oil production rewarding.

    “The produced oils in most cases are substandard with negative impact. So, in trying to nip the situation in the bud, government spent much on security to keep legitimate oil companies and drilling operation ongoing.”

  • Oil theft: Navy hands over six suspects, seven boats to JTF

    The Nigerian Navy Ship (NNS) Delta, on Friday handed six suspected oil thieves and seven loaded Cotonou boats over to the headquarters of the Operation Delta Safe (OPDS) for further investigations and prosecution.

    Giving details of the handing over exercise to journalists at the NNS Delta’s base in Warri, the Commander of the NNS Delta, Commodore Ibrahim Dewu, also revealed that the suspects were arrested with products suspected to be illegally refined diesel, also known as AGO of an estimated quantity of 540,000 liters.

    Commodore Dewu, who was represented by the Executive Officer (XO) of the NNSDelta, Navy Captain Adeyemi Adewuyi, said the suspects were arrested on Wednesday, 6th of March, 2019 and that the product was said to have been procured from Opudebubo Creek in Warri South-West council area of Delta state.

    He, however, warned those involved in illegal activities in the maritime environment with the NNS Delta’s area of responsibility (AOR) to desist or face the law as the Nigerian Navy would not relent in its efforts to make the Niger Delta safe and fit for legitimate activities.

    “This morning we are handing over seven Cotonou boats that were arrested on the 6th of March to appropriate security agencies. The boats were arrested at Opudebubo Creek in Warri South-West council area of Delta state. According to the suspects, they came all the way from Igbokoda in Ondo state to buy the products from the creek. They said they were taking the product to Igbonla in Okitipupa in the Igbokoda area of Ondo state.

    “The quantity is estimated at 540,000 liters of AGO, illegally refined. We managed to arrest six suspects. The original number of the Cotonou boats was 8, however, one of them sank at the point of arrest, due to leakage. Investigation is still on and that’s why we are handing them over to the appropriate prosecuting agency for all other facts to come out.

    Six of the seven loaded Cotonou boats at the jetty of the NNS Delta on Friday.

    “I want to use this opportunity to warn all the criminals like pipeline vandals, to desist from their nefarious ways. Nigerian Navy will not relent in her efforts to stamp out criminality in the creeks of the Niger Delta”, he said.

    Meanwhile, when asked for his team’s mission in the area where they were arrested, one of the suspects, who identified himself as Odusola Irewole said he was a first timer in the illegal business, adding that he was pushed into it by lack of gainful employment.

    “We came from Ondo state on the 6th of this month to buy diesel in Opudebubo Creek. I don’t know the seller because I’m just a worker in the boat. The owner of the business is Femi Jafo. He’s in Ondo state now. This is my first time because this boat is a new boat. I’m doing this job because there’s no job anywhere else, nothing to survive on. I didn’t know it was illegal, it is now that I’m getting to know”, the suspect said.

  • No longer at ease with crude oil thieves

    Concerned about the colossal loss of revenue by the country through oil theft and pipeline vandalism, the organised private sector (OPS) are working round the clock to address this hydra-headed monster by adopting Alternative Crude Evacuation, which will enable the country save over N995.2 billion annually, reports Charles Okonji

    To say crude oil theft remains one hard nut to crack is certainly stating the obvious. Truth is, majority of Nigeria’s oil companies have been battling the persistent oil theft and pipeline vandalisation for over 45years, a development which experts say is the consequence of the continued use of the 200km-long Trans Forcados Pipeline in transporting crude oil to the Forcados Oil Terminal (FOT).

    Cost of crude oil theft

    According to Mohammed Ibn Chambas, the Secretary-General, United Nations Office for West Africa and the Sahel (UNOWAS), oil-related crimes cost Nigeria a whopping $2.8 billion, an equivalent of N995.2 billion revenue loss in 2018 alone.

    In a recent report by the UNOWAS, it was revealed that the sector suffered from attacks on oil installations, maritime crime, and piracy, thereby constitute serious threat to the peace, security, and development in the region. Oil companies in the country are also confronted with the challenge of controlling the value chain of their products, monitoring what comes into the 200km-long Trans Forcados Pipeline in transporting crude oil to the Forcados Oil Terminal where they are exported, amongst others.

    The report equally showed that the oil companies in the country cannot accurately determine the quantity of oil that comes out for export due to regular vandalisation of the pipelines by Niger-Delta militants, which result in technical delays by the pipeline operators, as Shell is the worst hit and to a lesser degree Agip.

    While most oil companies overlook and go on with business as usual, bearing the losses grudgingly, some others believe that things cannot continue with the same trajectory and seeks to find a proprietary solution. The challenge is huge enough that it drains the nation’s oil revenue which could have spurred higher infrastructural development, they insisted.

    Oil theft involves a number of participants working in a complex web of illicit transactions. The value chain is made up of on the ground and overseas operations, sales, financiers, logistics, and security.

    Other causes of oil revenue loss

    Underestimation can take place at each stage of the value chain from drilling, transportation, loading, and shipping; potentially creating a wide gap between records and reality.

    It was also established that operators engage in over lifting of crude to avoid Petroleum Profits Tax as they declare less than the actual quantity produced. In view of the above challenges, the OPS operators are in desperate search for a more effective approach.

    More startling report

    A recent report by the Nigeria Natural Resource Charter (NNRC) on crude oil theft in the country has revealed a loss of N2.6 trillion between 2016 and 2017. NNRC is a United Kingdom-based Non-Governmental Organisation (NGO) which provides policy options to guide governments and societies manage their natural resources for development.

    According to the report entitled: ‘Oil theft in Nigeria,’ oil theft has assumed a spiraling and disturbing dimension, costing the economy huge losses, bigger than federal allocations for education and health sectors combined. For the two years (2016-2017) covered by the report, the combined allocations for health and education in the 2018 budget amount to 8.4 per cent or N189 billion of the estimated value of losses from crude oil theft.

    The NNRC report identified poverty, unemployment, poor governance, pervasive corruption, sabotage, pipeline vandalism and the neglect of the Niger Delta region as major causes for the emergence and sustenance of crude oil theft. The report also said it found a connection between politics and crude oil theft and noted that local politicians engage in oil theft to get money to fund elections.

    More disturbing in the report is the allegation that oil thieves bribe security officials deployed to curb oil theft in the Niger Delta region. Currently, Nigeria is the country most plagued by oil theft in the world. It is followed by Mexico, Russia and Iran. The amount lost to crude oil theft in 2016 was reported to be more than the revenue target attained by the Federal Inland Revenue Service (FIRS) in 2017.

    Also, the Chatham House, a policy Think Tank group based in the UK, said massive oil theft by pirates costs Nigeria $1.5 billion every month. The figure which was confirmed by the Vice President, Yemi Osinbajo, is equal to the total daily export capacity of the Forcados terminal.

    At a time government is in dire need of revenue to fund the N9.12 trillion 2018 budget and the N242 billion for the 2019 general election, the economic outlook is still fragile with fluctuations in global oil prices and rising national debt, checking the menace of oil theft should, therefore, be a national priority. Although oil theft has remained a recurring problem over the years, reports that the incident has continued in spite of security deployment to curb it, means the economy is at risk, and therefore new strategies are required to contain it.

    Also, a report by the Shell Petroleum Development Company (SPDC) showed that crude oil theft rose to 50 per cent in 2017. The NNPC monthly financial operational report for November 2016 disclosed that out of its total earnings from domestic crude oil and gas sales, N11.78 billion was spent on pipeline repairs and management compared to N12.34 billion in October 2017. The corporation said it lost N127 billion to crude oil theft and infractions in 2016.

    In the face of increasing revenue losses due to oil theft in the Niger Delta, we call for a proactive approach that will involve relevant stakeholders, including security agents and Regional Development Committees (RDCs). We support the Community Pipeline and Facilities Surveillance Programme (CPFSP) with strong governance currently being used by some oil companies to combat oil theft and vandalism. This device has become a model for enhancing the fight against oil theft and illegal refining. However, oil companies should improve on their relations with their host communities.

    According to the NNRC report, NNPC usually report the figures they are given by companies and does not independently verify the numbers to ensure compliance.

    The report showed that government took a legal action in 2016 against Shell Petroleum Development Company of Nigeria Limited (SPDC) and its subsidiaries, Shell Western Supply and Trading Limited for about $407 million as part of its measure towards recovering some of revenues gotten through undeclared and under-declared lifting for oil between 2013 and 2014.

    Statistics from Nigerian export records were reconciled with shipments of oil into the US including its bills of lading, oil vessels name used for the transaction, date of arrival at the destination ports and ports of origin.

    “The comparison showed that the crude oil shipments declared to have been exported from Nigeria was less than what was declared to have been imported into the US, using the same shipment by the same vessel on the same bill of lading. Also, some other shipments were not declared by the defendants to the necessary authorities, mostly the pre-shipment inspection agents. In some cases, the crude oil shipments were completely undeclared,” the report reads.

    “Assessments on the volume of oil theft vary vastly and most available figures are estimates. Several reports estimate that one barrel out of every ten produced is stolen, while anecdotal evidence suggests that up to 50 per cent of product flowing through pipelines could be lost,” the report further states.

    Loss by number of barrels

    Losses owing to oil theft and pipeline breakings is estimated at 300,000 barrels per day for the first quarter of 2018, with up to 200,000 of this potentially stolen while the remainder is lost to shut-ins as a result of pipeline damage, down time and deferred production.

    Consequence of oil loss

    The effect of such colossal loss is enormous and translates to severe revenue shortages for the federal government of our estimate of N995.2 billion per annum. The security costs, environmental damage and loss of investments in the region as a consequence of oil theft are estimated at $55 billion over the last decade.

    Alternative Evacuation System (AES) to the rescue

    These challenges led Nestoil Limited to developing a system called Alternative Evacuation System (AES) to permanently solve the problem of oil theft in the country and to grow the nation’s revenue base.

    The AES is a process where the regular downtimes caused by technical issues to the pipelines carrying crude oil, and vandalism done on the pipelines across specific routes recorded through the use of flow lines or the TFP which make oil producers unable to meet export targets, will be negated through another method of evacuating the oil by barges.

    With the modified system and facilities designed and built by Nestoil Group of Companies and its affiliates, the liquid that comes out from the wellhead has four constituents – oil, water, gas, and sediments known as wet crude, and the wet crude needs to be processed to get export grade crude oil but in the first step, the processing wet crude oil is fed into a three-phase separator where sediment, oil, water, and gas are separated with the crude further fed into an electrostatic heater treater where it is further treated to remove gas and water to meet export requirements (dry crude).

    The ready-for-export dry crude is then pumped to the loading platform where it is stored in a dump barge/Vessel. Shuttle vessels come to load the crude and transport to the FSO Ugo Ocha offshore, where buyer’s vessels load the crude. This process bypasses crude handling charges and potential theft through the TFP.

    Benefits of AES

    The Chief Technical Officer, Neconde Energy limited, a subsidiary of Nestoil, Ifeanyi Ezuka, said the innovation is the latest testament to Nestoil’s growing reputation as an innovative company that constantly seeks proprietary ways of working in difficult terrains and also borne out of necessity due to the downtime recorded on Forcados terminal when moving their products there.

    Explaining the importance of the innovation to the country’s oil industry, he said the usual losses or leakages associated with pipeline issues are eliminated, meaning that they now have control of the complete value chain to deliver specific volumes from the well-head to the terminal. Also, bankers now take them seriously than before because they know and appreciate the certainty of their operations, while there is also a significant drop in redundancy.

    The challenge of developing the system, he posited, was a combination of technology, logistics, and resilience as they looked at the fundamentals of what is required to be able to carry it out rather than putting it on a pipe, then they put it on a barge and send it out. So from the technical side, what are the types of barges needed? What is the draft of the river? How deep is the river from there to where they want to go? What are the terminals around those that are the closest? So how far is where they are to the closest terminal? So all of those technical assessments and analysis they got right.

    The other challenge, Ezuka said, was the regulatory approvals that will be needed. “So who do you need to talk to get approval? What kind of approvals do you need? Particularly when it comes with a very new space even the regulators will want to be very careful not to over regulate. So it then requires a lot of collaboration from you explaining to the regulators what you want to do to the point that they understand and then they’re able to also work with you on the regulations that are required to put the responsibility to that activity that you want to do.

    “We engaged the communities too and you have to do all of these to be a responsible corporate citizen to deliver this but with all of the people in that space explaining to them what you want to do. Also on the list, the Navy and the military as well because you carrying crude, they need to be able to understand that you are not one of the bunkers, that you’re carrying a legitimate crude, and you’re going to get the required approval.”

    He said other oil firms have started to take notice and have reached out to them on how to leverage on the service and they are ready to deliver the AES, which includes the crew dehydration, the loading platforms, the vessels, and all the controls that are required within 14 to 18 months for those that want to build theirs which is very expensive and might have effect on the cost of operation.

    “We are also ready to collaborate, synergise and provide the same service to those that needed us to help move their products using the system, which will be a plus for all as it saves overhead cost they could have expended on building theirs,” he added.Aside Nestoil’s pioneering efforts to see to the end of crude oil theft, the company in its quest to be the local partner of choice through the provision of innovative services is about to complete the construction of OB3 river crossing, the East-West gas pipeline, which is the longest and deepest underwater pipeline in sub-Saharan Africa.

  • Oil theft increased in 2017, says Shell

    Crude oil theft from the pipeline network of Shell Petroleum Development Company Limited (SPDC) increased   from about 6,000 barrels per day (bpd) in 2016 to 9,000 barrels per day last year, the oil giant has said.

    According to a document, which focused on security, theft, sabotage and spills, made available to The Nation, Shell said: “Crude oil theft on the pipeline network resulted in a loss of about 9000 bpd in 2017, which is more than the approximate 6,000 bpd in 2016, but less than 25,000 bpd in 2015.

    “The number of sabotage-related spills in 2017 increased to 62 compared to 48 in 2016 but less than 94 in 2015. The increase in 2017 can in part be explained by the militant-induced shutdown of the Forcados export terminal in 2016, which reduced opportunities for their party interference.

    “This demonstrates that continued air and ground surveillance and action by government security forces to prevent crude oil theft remain necessary. Since 2012, SPDC has removed more than 950 illegal theft points.”

    “Shell refers oil spills caused by crude oil theft and sabotage of facilities as third party interference, as well as illegal refining, which cause most of the environmental damage from oil and gas operations in the Niger Delta. But the company noted that irrespective of the cause of, it cleans up and remediates areas affected by spills originating from its facilities in conjunction with its joint venture partners. It stated that sometimes the spills are made worse where there are access challenges to the incident sites to investigate and stop leaks.”

    The oil gaint said its key priority  remained to ensure that oil spills from its operations did not occur. It said: ‘’No spill is acceptable and we work hard to prevent them. Shell companies in Nigeria operate under the same standards as all other Shell-operated ventures globally. Regrettably, in addition to spills caused by criminal activity, there were nine operational spills of more than 100 kilograms in volume from Shell Companies in Nigeria facilities during 2017, three of which were from pipelines/flowlines infrastructure, which is lowest in recent years.

    “This number is one more than the eight spills in 2016. In 2017, the total volume of oil spilled from operational incidents was approximately 0.1 thousand tonnes, a reduction of approximately 70 per cent on the 2016 figure.

    “The volume reduction and fewer spills from pipelines/flowlines can be attributed to continued progress on preventing operational spills such as preventive maintenance of pipelines and routine inspections.

    “To reduce the number of operational spills, the SPDC JV is focused on implementing its ongoing work programme to appraise, maintain and replace key sections of pipelines and flowlines. One hundred and eighty-eight kilometres and 40 km of flowlines and pipelines replaced over the last six years to approximately 1,230km.

    “SPDC continues to undertake initiatives to prevent and minimise spills caused by theft and sabotage of its facilities in the Niger Delta.”

  • Navy sensitises Delta community against oil theft

    The Nigerian Navy has introduced community sensitisation into its fight against oil theft and illegal refining of crude oil, starting with Ugbodede community in Warri South council area of Delta state.

    The Navy, led by the commander of the Nigerian Navy Ship (NNS) Delta, Commodore Ibrahim Dewu, engaged the community over the weekend at the town hall, during a meeting with some council officials, as well as members of the community.

    Ugbodede, an Itsekiri enclave, which is host to a crude oil wellhead, divested by Shell Petroleum Development Company (SPDC) to the Nigerian Petroleum Development Company (NPDC) few years ago, had allegedly become siphoning point for crude oil thieves.

    Addressing the gathering, the commander noted that while the illegal activities are carried out by strangers, they are done with the connivance of some community members.

    He therefore, charged the people to ensure their area is secured from perpetrators of the illegal act, just as he warned that his command will not hesitate to clamp down on all players, including community members, if caught in the act in the future.

    “The ongoing war against illegal bunkering and pipeline vandalism is not just about protecting the wealth of the nation but also the wellbeing of the people in the various communities where these criminal acts are being perpetrated.

    “I’m aware that these criminal acts are being perpetrated by outsiders who invade these communities with their equipment and expertise but I also know that they carry out these crimes in connivance with community indigenes, especially their leaders and youths who they sometimes engage on the job.

    “I’ve come here today to appeal to you all to be more alive to the responsibility of securing your community from those strangers carrying out this crime. I would have engaged a more drastic measure but I was advised to come and talk to you all first.

    Read Also:Navy seizes 100,000 litres of illegally refined diesel, arrests eight in Calabar

    “We (Navy) were here not too long to dismantle the pipes and valves used by these criminals to carry out the siphoning of crude oil from that wellhead in your community but report reaching us revealed that the people perpetrating this illegality in your community are back in business again,” he said.

    Speaking further, Commodore Dewu warned “this would be the very last time I’ll be coming to engage you all in discussions, when next I get information that your community is being used to carryout out this crime without resistance or alert to security agencies, I won’t be this nice.”

    The community had become a beehive of activities for members of the syndicate that specialise in crude oil theft, operating within the axis who ran long pipes through the community before clamping valves on the Wellhead from where they siphoned tons of crude oil barrels daily.

    Responding, the Trust Chairman of Ugbodede, Mr. William Cheke, called for deliberations with the management of NPDC in order to reason out a workable solution to the problem.

    Cheke, who commended the NNS Delta and council officials for the forewarning rather than taking the community unawares, assured that his people will seize allowing outsiders to come into the community to carryout illegal bunkering activities.

    “Let me assure you Sir, that with this visit today it will no longer be business as usual for strangers who infiltrate our community to steal crude oil. Let me say that from today, illegal bunkering has officially come to an end in Ugbodede community”, Cheke promised.

  • Navy, 24 others join forces against piracy, oil theft

    THE Nigerian Navy (NN) and its counterparts from 24 other countries yesterday began a multinational sea exercise against piracy, oil theft and other maritime crimes in the Gulf of Guinea (GOG).

    The exercise, codenamed OBANGAME EXPRESS 2018, was initiated by the United States of America (U.S.) in 2010 to boost capacity of West and Central African nations’ navies in tackling vessel hijack and hostage-taking at sea.

    Flagging off Nigeria’s phase of the exercise at Onne Port, Rivers State, Chief of the Naval Staff (CNS) Vice Admiral Ibok-Ete Ibas, the said NN deployed four vessels and two helicopters for this year’s exercise, adding that the deployment was done in line with navy’s core expectations.

    Ibas, who was represented by the Chief of Naval Transformation  (CTRANS), Rear Admiral Begroy Ibe-Enwo, said the NN would carry out at least four exercise scenarios, adding that the French and Portuguese navies would have join simulations within the nation’s territorial waters.

    Twelve of the participating navies are from the GOG nations. Eleven are from countries in Europe and America, including United Kingdom, Canada, Brazil, Germany, Portugal, France, The Netherlands and USA.

    Also, participating in the exercise are the Economic Community of West African States (ECOWAS), Economic Community of Central African States (ECAS), U.S. Africa Command, Nigerian Maritime Administration and Safety Agency  (NIMASA)  and others.

     

     

     

     

     

     

     

     

  • EFCC probes 16 Ukranians for alleged oil theft

    The Economic and Financial Crimes Commission (EFCC) said yesterday it was probing 16 Ukranians suspected to be oil thieves.

    It said the investigation is being conducted in its Port Harcourt office.

    A statement by the Head of Media and Publicity of EFCC, Mr. Wilson Uwujaren, said: “The foreigners are being investigated alongside a vessel: MT SAN PADRE PIO, with registration number IMO 9610339 NT 2444, handed over to it  by the Nigerian Navy’s Forward Operations Base,  FOB Bonny, Rivers State.

    “The suspects were arrested on January 23 by the Nigerian Navy Ship, NNS SAGBAMA’s patrol team deployed for anti-crude oil theft and illegal bunkering operations around Odudu terminal, Port Harcourt, Rivers State.

    “The suspects are Vaskov Andriy; Garchev Mykhaylo;  Shulga Vladyslav;  Orlovkyi Ivan; Skoropupov Andrii; Nadaraia Leonid;  Vorohin Andriy; Buriak Maskym;  Skok Sergiy; Yakovenko Sergiy;  Boiachuk Roman;  Shakov Vladyslav;  Serebriakov Olehshii; Tsuekanenko Gennadiy, Diachenko Dmytro and Postoiuk Sergii.

    “Navy Captain S.W. Olurundare, who handed over the suspects to the EFCC, said they were arrested for allegedly operating illegally on Nigerian waters against the provisions of Nigerian Cabotage Trade Law.

    “The suspects will be arraigned when investigations are concluded.”

  • Navy arrest vessel, crew for oil ‘theft’

    Navy arrest vessel, crew for oil ‘theft’

    The Nigerian Navy Friday handed over a Motor Tanker, MT WOLOF and its seven crew members to the Economic and Financial Crimes Commission for alleged Automated Gas Oil (AGO) theft.

    The vessel, according to the Commander, Nigerian Navy Ship (NNS) BEECROFT, Commodore Maurice Eno, was intercepted on June 30, around the Lagos Safe Anchorage Area (LSAA).

    He said: “At the time of the arrest, MT WOLOF was loaded with about 300 metric tons of product suspected to be illegally refined AGO and had seven crew members onboard.

    Investigation revealed that the vessel had no document to support the product it was carrying.”
    Eno said that the sample of the product onboard the vessel was taken for laboratory test which the result indicated that the product did not meet the Department of Petroleum Resources (DPR) specification.

    He said: “The result also did not meet the Standard Organization of Nigeria’s (SON) specification.

    “In view of this, the EFCC has to take charge for further investigation and possible prosecution.

    “The Nigerian Navy under the leadership of the Chief of the Naval Staff (CNS), Vice Admiral Ibok-Ette Ibas has zero tolerance for illegalities in our waters. The Navy therefore reiterates its drive to safeguard Nigeria’s maritime domain from criminal elements.

    “I advise defaulters to desist from such acts or face the wrath of the law. I also urge citizens to give useful information with regards to persons engaged in illegal act to the navy or other security agencies.”

  • NIMASA partners Navy, Air Force to fight oil theft, piracy

    NIMASA partners Navy, Air Force to fight oil theft, piracy

    TO fight oil thieves and pirates on our territorial waters, the Nigerian Maritime Administration and Safety Agency (NIMASA) is partnering the Nigerian Navy and Nigeria Airforce.

    It has acquired some surveillance equipment to monitor the waterways and secure the ports.

    In furtherance of the engagement, NIMASA now operates a 24-hour surveillance regime, capturing vessels in the nation’s maritime domain irrespective of weather conditions.

    More than 5,000 ships ply the territorial waters yearly. Some vessels, sources said, violate international laws by engaging in illegal activities, including stealing of crude oil and other criminal activities.

    Its Director-General, Dr. Dakuku Peterside, said the agency achieves profile analyses, which include the flag, registered owner, operator, beneficial owner and movement of ships over a specified period.

    He said: “The system enables us to take very swift decision in real time, on any targeted ship. Currently, all offshore areas of interest have been electronically cordoned off with a guard zone via our surveillance system and we can at once link activities in the oil fields and on crude oil platforms.

    “ The system has not only greatly increased our capacity to block revenue leaks but has increased our revenue as all vessels coming into Nigeria are now captured and analysed for billing.

    “Our administration has been able to integrate surveillance data with billing control information, thereby driving our desire for the agency’s billing system to be fully operational  by two-thirds, from 72-hour down to 24 hours while keeping our eyes the target timeline of six hour billing,” Peterside said.

    A senior official of the Federal Ministry of Transport (FMoT), who craved anonymity, said the nation loses 200,000 barrels of crude oil to theft.

    “They are collaborating to curb oil theft, piracy and other criminalities, The Nation has learnt. More than 5,000 international ships ply the territorial waters yearly. Some of the vessels violate international laws by engaging in illegal activities.

    “The Air Force has acquired three maritime 128-6, F27 and ATR-42-500 jets and other planes to monitor the activities of oil thieves and other criminals.

    “The high-tech plane ATR-42-500 jet is being operated by the Air Force. The plane is fitted with sensors, radar and Electro-Optic Surveillance and Tracking (EOST) equipment, which houses three cameras to monitor ships in Nigerian waters.

    “The 20-seat plane can fly as low as 200 feet (60 metres) above the sea and passes on information about maritime traffic to the navy, who can intervene with fast-attack craft if necessary.

    “The collaboration is aimed at fighting all manner of maritime crimes in the country. With this aircraft, we can spot any vessel hundreds of kilometres (miles) away,” said Group Captain Enobong Eneh Effiom.

    “The aircraft is inscribed with the words: ‘Vigilance over the ocean’. The cameras installed in the planes function well at night based on their high powered lights.

    “For any sustainable and meaningful growth in the maritime sector, a robust maritime domain awareness system is inevitable. NIMASA has, therefore, entered into a Memorandum of Understanding with the Nigerian Navy and the Nigerian Air Force to enhance water patrol and aerial surveillance of Nigeria’s maritime domain.

    “The collaboration with the Air force will assist NIMASA in tackling the challenges of large and unrestricted navigational areas, small and non-cooperative objects taking advantage of the dense maritime activity to conceal their actions and it would also protect the ports and ships against attacks,” Effiom said.

    He said the agency was striving to ensure that the government and security agencies had access to accurate, comprehensive and up-to-the-minute situation data of the vessel traffic at sea.

    The jets, it was learnt, were built in France and equipped in Italy with radars, cameras and other security gadgets.

    It was gathered that the Navy has also acquired an equipment called Regional Maritime Awareness Capability Centre (RMAC) to aid the fightt.

    The equipment, findings showed, was imported from Japan for about N2 billion. It has high-frequency radio and long-range cameras, capable of spotting ships up to 48 kilometres away on the waters.

    “From the domain awareness centre, we can see ships from anywhere in the world coming or leaving our maritime space. It also gives us the ability to ascertain the actual threat the vessel poses,” the official said.

    The idea for the tripartite collaboration, a source said, started a few years ago

    It was learnt that NIMASA sought the help of the Air Force when it discovered that the war against pirates was complicated.

    “With the equipment in the planes, NIMASA can monitor even the unusual movement of vessels at sea and keep their records,” the official said.

    The jets, it was learnt, draw on the latest technology to provide a reliable, round-the-clock monitoring.