The Nation Newspaper

Tag: pipeline

  • Govt may lose $141.8m as Shell plans to shut pipeline

    Govt may lose $141.8m as Shell plans to shut pipeline

    THE Federal Government may lose $15.75 million daily for weeks in April as the Shell Petroleum Development Company Limited (SPDC) plans to shut the 150,000 barrel per day Nembe Creek Trunk Line next month.

    If the pipeline is shut, the government would be losing revenues in excess of $15.75 million daily at the current crude price of $105.65 per barrel.

    The spokesman of SPDC, Precious Okolobo who confirmed this, however, noted that a final decision on this has not been made, but the fundamental reason is to check crude theft points.

    Royal Dutch Shell Plc’s Nigerian joint-venture plans to shut the 150,000-barrel-a-day Nembe Creek oil pipeline temporarily in April to clear illegal oil tappings.

    The shut down, which illustrates the deepening impact of oil theft on the industry, is Shell’s response to increasing numbers of illegal connections designed to steal oil from the pipeline, said Jurgen Janzen, a Pipelines Asset Manager at Shell Petroleum Development Company (SPDC) at a briefing with reporters in Port Harcourt.

    “In April, we will shut down the entire Nembe Creek Trunk Line to remove tapping points, for an estimated nine days,” he said.

    The pipeline, located in the Eastern part of the Niger Delta, ferries 150,000 barrels of crude oil owned by SPDC, but a spokesman said it is also used by third parties.

    SPDC is a joint venture between Shell, the Nigerian National Petroleum Corp., France’s Total SA (TOT) and Italy’s Eni SpA (E).

    Janzen said the joint-venture is losing 60,000 barrels daily to oil theft, an increase from 50,000 barrels daily previously. “Since the beginning of this year, it’s going up again. There are at least 90 illegal tappings still in the system now that we are aware of,” he added.

    The increased illegal trade has triggered fears of a new environmental disaster in the Delta. During a flyover of parts of the Nembe pipeline provided by Shell for reporters last week, a large cluster of illegal refineries processing stolen oil could be seen. Neighbouring soil and waterways were dark from the oil residue produced by the makeshift facilities.

    Janzen said the illegal refineries are so inefficient that 70 per cent of their oil is wasted and ends up contaminatingthe environment.

    Also, Shell lifted Force Majeure on Nigerian Bonny Crude Exports

    Royal Dutch Shell Plc (RDSA) ended curbs on crude exports from its Bonny oil terminal in Nigeria after repairs were completed following a leak on its Nembe Creek pipeline, a company spokesman said.

    Force Majeure, a legal step that protects a company from liability when it can’t fulfill a contract for reasons beyond its control, was lifted from 4 p.m. on March 19, Precious Okolobo, a Shell spokesman said by phone from the southern oil hub of Port Harcourt.

    “Investigation showed that the leak was caused by a failed theft point on the pipeline,” he said.

     

  • Police, others involved in pipeline vandalism, FESTAC residents allege

    Are the police and other security agencies involved in pipeline vandalism? Yes, they are, say residents of FESTAC Town, Lagos, who are accusing the law enforcemnet agencies of despoiling their environment.

    Oil pipelines pass through some areas of FESTAC. These pipelines are being vandalised by those who scoop petroleum products from them to sell at give-away prices.

    Lamenting the degradation of their farm lands, pollution of their water and air, the residents urged the government to come to their rescue.

    They said the illicit act, which began in 2006, is thriving because of the involvement of security agents who escort vandals on operation at wee hours of the night.

    It was gathered that a stream behind a church in the estate serves as entry and exit points for vandals who come in a fleet of cars with armed policemen.

    During a visit, The Nation observed that the stream had been polluted with oil.

    A boat paddler, Mr. Francis Adoku, told The Nation that vandals’ activities had forced fishermen in the area out of business.

    He said: “The activities of those boys are very painful. It is more painful because the police and other security agencies are aware. They often come here with police escorts, fully dressed in police uniform with guns. If the police say they are not part of this illegal business, they are lying. This river is not where the pipeline is; they just cross through this place to the other side to steal crude oil.

    “Look at the river, it is now black; nothing can survive in it. Look at even the farmlands here; people cannot engage in bush burning because everywhere will catch fire. Their activities have destroyed our business here.”

    Another source told The Nation that some policemen who conspired with the vandals were recently arrested. He said the vandals greased the policemen’s palms on weekly basis, adding: “If government wants to end pipeline vandalism, it knows what to do. They must do something fast before my entire farmland will become unproductive,” the farmer said.

    A resident, Lanre Ogunsanya, urged the government to stop the vandals, adding: “I spend most of my time here. Since they started this exercise about six years ago, it has not been easy coping with the smell of fuel all over the place. They usually come between 3 and 4am, when the whole place is quiet. I have seen them on several occasions that I slept in church. They always come in many cars with police escorts.

    “They have condemned our water. Our well is filled with oil. We used to use the water for domestic chores but we can no longer do so. So, the whole thing is affecting us. We are very cautious with the use of generating sets to avoid an inferno. Their canoe is anchored at the other side; it has been there for more than one week and we have not seen them.”

    When contacted, Commander, Area E, Festac, Dan Okoro, described the allegations as unfounded. He said none of his men was arrested, nor had any policeman been caught conniving with the hoodlums.

    Okoro said: “Who are the policemen? How can they say the vandals are working with police? The place is strictly manned by men of the Nigerian Security and Civil Defence Corps (NSCDC)?

    “The Police have no business in that area. And besides, there is no pipeline at 7th Avenue. That place is the creek they pass through. There are no pipelines there. It is just the river; the pipeline is at a very far distance which is where fire was said to have occurred. So, if anybody says the Police, Army or any security agency did anything, find out and you will see that there is no truth in it.

    “The allegation is baseless; it cannot happen in my command. My men know that if they engage in criminal activities, they will pay dearly for it. No officer was arrested over pipeline vandalism in my command.”

    The State Commandant, NSCDC, Shem Obafaye, said: “Why not find time and see me in my office so that we will discuss the issue? I am in a meeting now and the meeting will last till 3:30pm.”

    Deputy Police Public Relations Officer, Lagos State, Damasus Ozoani, an Assistant Superintendent (ASP), said he was not aware of any such arrest, adding that the petroleum monitoring task force is in charge of such operations.

    “I am not sure such a thing will happen in Okoro’s command because he is a no-nonsense person. Police officers in the petroleum taskforce are deployed there to work with other agencies. No such case has been reported and I can tell you that those allegations are not true.”

  • Need to keep pipeline vandals at bay

    Need to keep pipeline vandals at bay

    Just when we thought the nightmare was over, the country is back to square one. And if we look at the mirror, the picture says it all – the problem is us. Sure we are the architects of our own misfortune. Where else on earth do you see man inflicting pain on himself but in Nigeria? Man’s inhumanity to man!

    As last year petered out, there was pipeline inferno at Ije-Ododo in the Ojo area of Lagos. Preceding that was an explosion in Arepo, Ogun State which culminated in the gruesome murder of four officials of the Nigeria National Petroleum Corporation (NNPC). To the uninformed; those events were part of the Nigerian circus. People always steal oil, vandalise pipelines, even burn themselves to death and the show continues.

    The NNPC did not see it that way, nor did motorists. NNPC Group Managing Director (GMD) Andrew Yakubu saw a crisis coming. Efforts were made to fix the damaged pipelines. At the same time, the vandals were bent on frustrating any such attempts.

    It did not take long to notice fuel lines. Repair works meant consumers had to undergo stress. Kudos to the NNPC, Yuletide of 2012 was not as torturous as it was in 2011 when the Federal Government increased the pump price of Premium Motor Spirit (PMS) from N65 per litre to N140. Although some greedy marketers adjusted their metres slightly, there was enough fuel to celebrate and calm the polity.

    About this time last year, fuel scarcity and price hike almost led to our own version of the Arab Spring. And just when we started singing Hosanna, trouble came up again from Arepo, the sleepy town that houses the largest Journalists’ Estate in Africa.

    The filling stations became chaotic again because thieves went wild again. The NNPC could also have gone mad. What can make a sane mind go mad more than having to spend time and money doing the same thing all over again? The job of the NNPC GMD now entails visiting damaged pipelines every now and then instead of managing other more pressing oil matters.

    The vandals have brought more pains to Nigerians. It’s instructive that the NNPC went to work immediately to repair the pipelines. If the flow had not been stopped, Arepo would still be burning. If the NNPC had continued to pump fuel, nobody would be in Arepo. If not for the immediate intervention of the NNPC, Lagosians would have been suffering by now.

    It is sad that money that should be used for other things is being pumped into pipelines repairs because thieves continue to vandalise our common asset. As repair works progress, the economy suffers, man-hours are wasted in search of fuel, commuters are forced to pay more and food prices also go up.

    We may always try to blame the NNPC for all our oil woes. At this time, I think we should tell ourselves the truth. The job of the NNPC is not just about burst pipelines. And we should also not restrict their intervention to fire brigade approach. I am sure with the Petroleum Intervention Bill (PIB), oil business will eventually turn out to be good business.

    •Aburime is a Lagos- based accountant.

  • Create pipeline protection agency, says NUPENG

    The National Union of Petroleum and Natural Gas Workers (NUPENG) has called for the establishment of a pipeline protection agency.

    Its President, Comrade Igwe Achese, said such an agency would check the incessant damages to oil pipelines acros the land.

    Comrade Achese, who made the call in the wake of the recent Arepo fire, argued that such a body would ensure enhanced security around pipelines across the country.

    He told The Nation that the high unemployment rate in the country is responsible for the incessant pipeline vandalism, saying the agency, if created should be charged with effective monitoring and policing of oil pipelines.

    The agency should work in tandem with the various security agencies, he added.

    He said the country would continue to experience pipeline vandalism if the security situation in the is not addressed.

    “We are experiencing a system failure; a total collapse of our values. If our security agents are unable to arrest those who killed government officials while repairing damaged pipelines, then the situation has reached worrisome dimension.

    “The Federal Government needs to overhaul the polity to make it to work again. It also has to arrest and punish pipeline vandals, as this would go a long way in stopping the scourge,” he said.

    He said the government must not allow these saboteurs to frustrate its efforts and turn the wheel of progress backward.

    NUPENG lost many of its members to pipeline vandalism in the past.

    Three engineers that were killed at Arepo in the process of repairing vandalised pipelines were also its members.

    The union therefore, stressed the need for the government to stop the killing of its members by putting adequate protection process in place.

  • Yet another pipeline fire

    Yet another pipeline fire

    Given the dearth of accurate statistics in Nigeria, the number of lives lost to oil pipeline explosion/fire can only be estimated in hundreds considering the number of such disasters in the country in recent times, yet we don’t seem to be ready or in a haste to end this self inflicted tragedies.

    For the umpteenth time oil thieves burst a Nigerian National Petroleum Corporation (NNPC) pipeline at Arepo village in Obafemi-Owode Local Government Area of Ogun State, just a stone throw from Lagos State to scoop fuel for sale at the black market.

    But since every day is for the thief and one day for the owner of the house, the seemingly unforgiving spirit of the petrol flowing in the pipeline decided enough was enough and fought back, blowing up in a loud explosion causing a huge ball of fire that consumed no fewer than 30 lives, according to initial reports in the media, with hundreds of others badly injured. The criminals and accomplices were believed to constitute the bulk of the dead while some innocent bystanders/villagers were also affected.

    Another round of fuel shortage is expected in Lagos and surrounding states as a result as the Pipeline and Products Marketing Company, the arm of NNPC in charge of the pipelines has expectedly turned the tap off to stop the flow of petrol through the Arepo pipelines.

    A day after the Arepo incident oil thieves struck at another NNPC pipeline at Oviadge, Oghara in Delta State and were lucky to escape with their lives as no fire was reported. As it is often the case among thieves, quarrel always occur not during the operation but during sharing of loot. The Arepo thieves were reportedly arguing over whom among them should scoop the fuel first after they had successfully burst the pipeline when suddenly one of them shot into the crowd and the bullet ignited the fire that consumed them.

    The questions begging for answer here is why is it so easy to vandalise our oil pipelines and why are they so vulnerable to such attacks? What are the security agencies and the NNPC doing to safeguard this all important oil facility? I remember in the 70s, when these pipelines were being laid, as school children we were wondering what the engineers and technicians were doing, but when we were told they were laying pipes to take fuel to different parts of the country, we just accepted as one of those things government do, even when we couldn’t comprehend the import of that. But since they were located far away from human habitation and buried deep in the soil, we were always on the look out for danger (keep off) signs put up by NNPC near the pipelines on our way to school and tried to avoid igniting any fire or lit a match around the area so as not to cause explosion, as if the petrol was flowing on the ground. That was our mentality then as school children and we grew up as adults to respect and appreciate the economic importance of the pipelines to Nigeria. Call it economic patriotism if you like but we were proud of it, to us it was a great achievement.

    I am sure those pipeline vandals are mostly youths and young adults and I wonder what they think of these pipelines; a passport or gateway to quick and easy wealth or what? What on earth would drive some one to burst a pipeline to scoop fuel illegally knowing the dangers involved; not even the possibility of arrest but the likelihood of losing his/her life to an explosion? Well it could be argued that a hungry and jobless person could do anything to put food on his/her table, but then at what cost both to himself and the larger society? Now these people because they wanted quick money went to burst these pipelines and now they are dead, putting their families in sorrow and anguish and the society at the risk of another harrowing fuel shortage. This is the kind of selfishness that is killing this country; nobody thinks about the interest of the other person it is self first and self alone and always. The oil thieves/pipeline vandals don’t care what happen to the rest of us as long as they make their money, and we also encourage them by buying the stolen fuel from them even when we know they don’t own or work in a filling station. Go to any of our villages and even suburbs of our towns and cities and you see people, Okada riders, grinding machine operators and owners of ‘I better pass my neighbour’ generators buying fuel from hawkers selling by roadside or even in front of their house, at home. Where do you think they get the fuel from?

    Government must begin to think about our welfare as a people, how we get the fuel that we use. If the fuel is available everywhere at the right price, nobody will patronize the hawkers and the pipeline vandals will be put out of business. It is not as if they sell this fuel for cheap.

    Again the argument over joblessness is not a justification to go into criminality. And to worsen the matter, some of these vandals and their collaborators could be gainfully employed if they so wish and live comfortably within their means. A medical doctor was arrested in Kogi State sometime ago for being a member of a syndicate that specialise in pipeline vandalisation and sale of stolen fuel. His argument was that the money he gets monthly from medical practice (N100, 000 or so) is too small to maintain himself, his aged parents and siblings. What a load of rubbish. It is true a lot of our professionals out there are just roaming the streets with nothing to do. It is also true that an idle hand is a devil’s workshop, but, these idle hands should not allow the devil to use them as the consequences are grave. The society, especially the government should also not push them into the hand of the devil.

    Government owes it as a duty to the governed not only to provide employment but also create a conducive atmosphere for job creation. Most of our graduates are unemployable because they went to school to learn the wrong or old things that are not in tune with the demands of a modern economy. Government should look into that area and make our graduates not only employable but also competitive internationally.

    Back to the issue of security of the pipelines; who protects them? Oil pipelines in the Niger Delta were recently farmed out to ex militants in the area to protect against vandalisation; who protects the pipelines here (Arepo et al) and other parts of the country? Should we engage OPC to do it since the government, going by the Niger Delta example has shown it is incapable of protecting this important economic facility?

    On a more serious note, shouldn’t we revisit the issue of the setting up of a National Guard in this country as mooted by the Babangida administration then? May be it wasn’t a bad idea after all.

     

  • Pipeline explosion: Vandals shoot at rescuers

    Pipeline explosion: Vandals shoot at rescuers

    Fire is still raging at Ijeododo in Iba Local Council Development Area (LCDA), Lagos State where a pipeline exploded on Monday night.

    Fire fighters are said to be finding it difficult to access the scene because of the thick forest.

    Rescue operations were initially stalled by vandals who shot at a team comprising the police and officials of the National Emergency Management Agency (NEMA) and Nigerian Security and Civil Defence Corps (NSCDC).

    NEMA Director-General Ibrahim Farinloye, who was at the scene said the explosion occurred at about 11pm on Monday.

    Rescue operations, he said, began yesterday because it was late and dark on Monday night and the team could not access the scene.

    He said: “The pipeline exploded in the dead of the night, but rescue operations could not be carried out and was scheduled to start by 5.30am yesterday.

    “But the scheduled rescue operation was botched by the vandals who shot sporadically to scare the team.

    “However, NNPC officials were contacted and they shut down the pipelines to limit the damage and further loss of products.

    “We could not carry out the rescue operation or an assessment of the devastation because the vandals were shooting at us.

    “The rescue team had to take cover because their safety is important. It was when things calmed down that we moved in to do our job.”

    By last night, he said clearance of access route to the point has begun, adding that rescue operations has also started.

    “At the 7th Avenue end of FESTAC Town, one hundred and fifty (150) pieces of 50 litre-Jerry cans and 46 bags that can contain 150 litres of fuel were recovered. Efforts to reach the Commandant, NSCDC, Obafaiye Shem, failed.

    Officials of Lagos State Emergency Agency (LASEMA) said the flowstation had been shut, adding: “the fire should die off soon.”

    Some metres away from the fire, thick black smoke enveloped the air.

    A resident, Comfort Onwumere, who claimed to have lived in the community for more than 10 years, said: “We did not sleep here yesterday. I ran out with my children without wearing cloth.”

    “We had to run because pipelines surround this community and the entire community can be engulfed if care is not taken,” said another resident, Kazeem Olukabi.

    They said the fire was not the problem, as it is the third time it is happening this year, adding that the problem is why government will allow vandalism to continue without any resistance.

    “The only time vandalism does not happen is during the heavy rains. But the simplest solution is to construct a road from Ijegun to Abule Ado in Amuwo Odofin Local Government Area,” said Idowu Taofeek, Ijeododo Community Development Association Chairman.

    He appealed to government to heed their requests for the road.

    They were thankful that no casualty was recorded.

    The fire destroyed all Power Holding Corporation of Nigeria (PHCN)s electricity cables that supply electricity to the area.

    “The last time it happened, we had to contribute about N500,000 and that took about five months before we could have light. This time we do not know how long it will take,” Taofeek said.

    Officials of the NSCDC, Navy Merchants, and a water truck of the Lagos State Fire Service are at the scene to manage the emergency.

    NSCDC’s Lagos Command Public Relations Officer Mrs. Kehinde Bada said no arrest was made.

    She said a large quantity of petroleum products were recovered and would be handed over to NNPC after investigations, adding that evacuation of the recovered product has begun.

    When contacted, the state Police Public Relations Officer (PPRO), Ngozi Braide, a Deputy Superintendent (DSP), said she was yet to get the details of the incident.

     

  • Pipeline fire in Lagos suburb

    A  huge pipeline fire was raging at Ijeododo, a community in Ojo Local Government Area of Lagos State last night.

    According to a report on a Lagos-based Television Continental (TVC), residents were fleeing the area as fire fighters battled to put out the fire at about 11pm.

     

  • ‘Involve communities in pipeline protection’

    ‘Involve communities in pipeline protection’

    The Managing Director and Chief Executive Officer of Prosperous Oil and Gas Company, Mr Isinkaye Abiodun, has stressed the need for those indigenous to communities through which oil pipelines passed to be involved in security of the pipelines to prevent vandals from tampering with them.

    He made this suggestion while commenting on the current scarcity of petroleum products across the country.

    He stated that if members of the host communities are engaged in the enlightenment of the people on the need to protect the pipelines, the rate at which vandals operate in the areas would be reduced.

    According to him, most oil marketers have been frustrated by the activities of the members of the communities, especially when their oil tankers tumbled.

    He lamented that the members of the communities usually rush to the scene where tankers fell to scoop fuel, thinking that it was a national cake.

    The people should be enlightened on the fact that the tankers as well as the content are owned by oil marketers who usually approached banks to access loans for the running of their businesses at high interest rates.

    He observed that most of the vandals and the members of the host communities are ignorant of the hazards inherent in the cutting of the pipelines.

    Commenting on the two-year-old administration of Governor Kayode Fayemi, Mr. Isinkaya urged the governor to pay more attention on physical projects.

    He suggested that investors should be encouraged to invest in the state through different enticing policies such as tax holiday, and reduction of tax and rates.

    The incentives, according to Isinkaya, would serve as baits to prospective investors who could pick interest in the state, adding that the potential which abound in the state had not been exploited.

    He disclosed that the influx of investors in the state would have spiral positive effect on the economy of the state, especially shoring up the internally-generated revenue (IGR) and reducing unemployment.

     

     

     

    The oil magnate observed that this would take pressure off the shoulders of the state government, noting that the activities of the investors would complement as well as solving most of the socio-economic problems in the state.

    Nevertheless, he commended the governor for some of the ongoing and completed projects in the state in the last two years of his administration.