The House of Representatives Special Adhoc Committee on Crude Oil Theft and Losses and the Nigeria Navy are set to collaborate on strategies for effectively policing pipelines and other critical assets in the oil and gas industry, aiming to combat the menace of crude oil theft and pipeline vandalism.
During a visit to the Chief of Naval Staff, Chairman of the Committee, Alhassan Ado Doguwa, appealed to the Nigerian Navy to provide relevant information to assist in uncovering those responsible for the ongoing theft of the country’s crude oil.
Doguwa assured that information obtained confidentially by the committee will be handled with utmost care.
Doguwa said: “crude oil theft is a major concern to the economy of our country, Nigeria, and on that note we feel we have to extend hands of fellowship to the relevant security stakeholders that have long been existing on the space to fight against these criminalities.
“You can all recall that the recent projection for the year 2024, the parliament budgeted about 28.77 trillion naira based on crude oil bench mark of $77.96 per barrel and the production of 1.78 million barrels per day.
“In January 2024, Nigeria oil production rose to about 1.42 million barrels per day, this represents an increase of about 6.85 percent compared to the the production figure of 1.39 million barrels per day in December 2023.
“Though there seemed to be a gradual improvement of oil production, but we are still bellow the OPEC quota of 1.58 million barrels per day in the 2024 budget benchmark. The major reason the country is not meeting her production targets is largely attributed to crude oil theft.
“This theft is being carried out in collusion, that not only threaten the economy of the country but have even precipitated crisis bothering on national security.
“You may recall that in 2022 NEITI report, which is the key parameter for our economic projections, the agency stated that about 619.7 million barrels of crude oil, valued at over $46.16 billion was stolen within the period of 12 years.
“In order to address these criminalities, the house instituted this special committee, and charged it with the responsibility of investigating all dimensions of oil theft and with a view to bringing all culprits to book”.
Doguwa said the committee has since commenced legislative work , engaging strategic stakeholders, and will soon begin public investigative hearings on “identified malpractices.”
He disclosed that the committee has visited the site of two vessels arrested in Delta State, for involvement in crude oil theft saying “these occurrences calls for an overhaul of the security architecture around the oil and gas infrastructure and the nation’s marine environment. We need to strengthen collaboration among the security agencies and also the private security that we have on ground”.
In his Chief of Naval Staff, Vice Admiral Emmanuel Ogala said oil theft is major challenge to the country’s economy, stressing the recent report by NNPC Limited of the rise of crude oil production to about 1.78 million bpd.
He said it was the highest in last three years, as still being below Nigeria’s OPEC quota, giving assurance that the Navy will work in collaboration with others to ensure the quota is met.
The Naval Chief lamented the shortage of personnel in the face of the vastness of the country’s waterways which he said was over 1/10th of Nigeria land space, saying the Navy has less than 30,000 personnel, to man the vast sea space with operational guideline of policing, enforcing and assisting in coordinating enforcement.
Ogala said the Navy has adopted a framework for a total maritime safety strategy, but that “there must be adequate collaboration with other agencies, and working with communities, international organizations and others.”
He said the Nigerian Navy has been doing a lot in tackling crude oil theft, but it does not say much about that in the media, as according to him, 34 vessels have been arrested between July 2023 to date, and have been subjected to requisite investigation, with some already facing prosecution by the concerned agencies, including the police and the EFCC.
“We have a big task to ensure that we meet the oil production target in the budget. You also stated that there has been a gradual increase in our crude oil production, that is a fact.
“When we came on board last year, it was may be 1.1 million bpd, and like you stated, we now have 1.4 million bpd, which is still below our OPEC quota…all these improvements are not yet enough because we have not met the quota, but we the capacity to meet the quota.”
He also blamed some major oil companies of failing to seal disused oil well heads as the standard is globally, after leaving such wells when considered no longer commercially viable, saying those operating illegal refineries take advantage of the oil well heads to scoop.
