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Tag: refineries

  • Oil swap not cause of refineries’ failure, says NNPC

    The Nigerian National Petroleum Corporation (NNPC) has debunked reports attributing the failure of the refineries to the its crude oil Swaps and Offshore Processing Agreements (OPAs).

    The crude oil Swaps and Offshore Processing Agreements (OPAs) are arrangements made by the Federal Government in which crude oil is exchanged for refined product, or crude oil taken overseas for refining by oil trading companies, and NNPC pays the refining and other incidental costs.

    A source at the NNPC who spoke to The Nation on the issue, said it is important to set the record straight in the light of the unverified reports. “The reports are well-coordinated agenda aimed at creating new layers of distraction to cover up decades of political intrigues, corruption and sabotage, which have put paid to all attempts to revamp the four refineries.”

    The source said the history of the nation’s refineries had been dogged by social, political and systemic failures, which had defied solutions in spite of efforts by past administrations. “Our refineries have a history that is known to all. Attributing the failure of the refineries to the Swap and OPA contracts, which only emerged some four years ago, is the height of falsehood.”

    According to the source, the refineries woes began when the administration of the late General Sani Abacha awarded the controversial Turn Around Maintenance (TAM) contract of the Port Harcourt Refinery and Petrochemicals Company to a prominent politician and businessman. The contract was criticised and it led to major labour disputes. From that point on, successive governments have spent billions either carrying out ineffective TAMs or inconclusive privatisation attempts, he added.

    “The woes of the refineries were further compounded by the insurgency that erupted in the Niger Delta with militants regularly blowing up crude pipelines, especially the Kaduna refinery line. The rampart insecurity in the region gave rise to widespread vandalism on crude and product pipelines resulting in a booming illegal bunkering trade for arms business, incessant refinery shutdowns and well documented fatal fires that took the lives of hundreds of ordinary citizens,” he said.

    The source also said former President Olusegun Obasanjo was frustrated by the inability of the refineries to operate effectively despite pumping in millions of dollars to revamp them. Tired of fighting militants and chasing illegal bunkering moguls, he attempted to privatise them but the exercise was hijacked, only to be carried out at the final days of his administration.

    When the late President Umaru Yar’Adua came on board, he reversed the TAM contract on the Kaduna and Port Harcourt refineries awarded it to a local oil consortium because the process was considered not to be transparent.

    From that moment, none of the refineries has functioned effectively.

    Because of this development, advocates of deregulation and private refineries have been sabotaging the government’s efforts at restoring the refineries in order to have their way. Therefore, blaming the oil Swaps and OPA for the failure of the refineries to function is mischievous. The oil Swaps and OPAs were introduced as a solution to steady fuel supply because of non-operational refineries and should not be the reason the refineries are not working, he said.

    The initial crude swap deals occurred between 1977 and 1986 when heavy crude from Venezuela was swapped for Nigeria’s light crude to feed the Kaduna refinery. Because of the state of the local refineries, the government extended the crude swap concept to include crude for refined products.

    The decision to deploy Swap and OPA contracts for reliable and sustainable supply of products was done in the best interest of the nation, and is one of the reasons Nigeria has survived various periods of fuel scarcity that would have grounded the economy. The terms of the Swap and OPA contracts were transparent and had in-built robust clauses, which have made it possible for all parties to reconcile their position amicably, the source added.

     

     

     

     

     

  • Oil Subsidy: Enugu residents call for overhaul of refineries

    Oil Subsidy: Enugu residents call for overhaul of refineries

    A cross section of Enugu residents have called for proper overhaul of the refineries before the proposed removal of oil subsidy.

    Some of the residents, who spoke with the News Agency of Nigeria (NAN) in Enugu on Monday, decried the current state of refineries in the country.

    A civil servant, Mr Emeka Nebo, advised the government to ensure that the refineries were functional before the removal of subsidy on petroleum products.

    “If at all the government is insisting on removing oil subsidy, all our refineries must be put in good shape so as to serve the people effectively.

    “I strongly believe that if the Warri, Port-Harcourt, and Kaduna refineries are working as they ought to, we will not be complaining about fuel scarcity,” he said.

    Another civil servant, Mr Donald Odenigbo, urged the government to be ready to increase workers’ salaries as soon as it removed the subsidy.

    “You cannot remove oil subsidy without increasing salaries of workers to cushion the negative effect.

    “There is no palliative measure than that, because prices of everything in this country will definitely increase,” he said.

    Mrs. Phina Nwosu, a lawyer, said that the government should not discuss anything on subsidy removal because it would pose a serious threat to the people.

    “Government should not discuss removal of oil subsidy now because it will increase the suffering of the people.

    “The past administration wanted to do that but it received knocks from labour and the opposition. Why now?” she queried.

    Nwosu joined the call on the Federal Government to urgently put the refineries in order for sustainability.

    A petroleum dealer, Mr Solomon Amalu, said that he believed that the removal of oil subsidy would make fuel available in every filling station.

    Uju Okoye, a student complained that removal of oil subsidy would amount to increase in prices of goods and services.

    According to her, if it is done, school fees, prices of books, transportation, food and everything will increase astronomically and people will suffer.

    “I am calling on all Nigerians to get ready for hard times,” she said.

  • ‘Modular refineries ’ll end fuel scarcity, create jobs’

    ‘Modular refineries ’ll end fuel scarcity, create jobs’

    At the centre of the crisis in the nation’s oil and gas industry are oil theft, illegal bunkering and pipeline vandalism, among others. These have resulted into the loss of an estimated $10.8 billion. But the Joint Task Force (JTF) Commander, Major-General Emmanuel Atewe, says the problems are surmoutable. The agency, he said, has arrested one of the biggest bunkerers, discovered and destroyed several illegal refineries, seized a catche of arms and ammunition used by some economic saboteurs. Modular refineries, according to him, will improve fuel supply, create jobs and grow the economy. AKINOLA AJIBADE met him.

    Why was the the Joint Task Force (JTF) established?

    The government set up the Joint Task Force (JTF) in  2004 to restore normalcy in the Niger Delta region. Prior to this period, armed gangs and criminal groups were seeking control of mineral resources, especially crude oil in the region.  This made the government to establish the Joint Task Force, with a primary mandate to curtail the activities of militants disrupting the production of crude oil. Having achieved this feat, the government gave the JTF a new mandate to protect oil facilities to prevent vandals, and thieves from accessing them. This gave birth to an idea called: “Operation Pulo Shield”; special troops assigned to monitor and secure oil installations.

    What is JTF’s strength, given the volatile nature of the region?

    JTF comprises the Military, Navy, Police, State Security Service (SSS) and other institutions. These agencies are strong in their own rights. By bringing these institutions together under one umbrella known as JTF, it means the government is committed to the fight oil theft and associated crimes, such as pipeline vandalism and kidnapping. Little wonder that the Joint Task Force boasts of a strategic, combined and stronger platform that can deal decisively with issues such as pipeline vandalism, oil theft and oil bunkering that have not only become a recurrent decimal in the Niger Delta, but are posing as threats to the nation’s economy. By so doing, the government has lived up to its responsibility of protecting its economy from people who are out to destroy it.

    How has it tackled oil theft and related problems in the Niger Delta?

    Fighting oil theft and other crimes has been challenging, in view of the fact that people, who indulge in the activity, are resilient because they do not give up easily. They understand the terrain well; know how, when and where, to dodge when the chips are down. Whenever they break pipelines, they offload its content, put it in a barge, move it to the high sea from where they send the stolen crude to their final destinations, which in most cases are their agents or clients in Europe, United States and others. They make money in hard currencies, a development that informs their decision to stay on in the illegal business. But in all these, the Joint Task Force has been able to overcome their antics. JTF gets tip-off from its patrol team that some people are trying to escape with stolen crude, and immediately we mobilise our men and pursue them with gun boats. In most cases, we catch  them and arrest them. At other times, they escape with the stolen item.

    As I said earlier, JTF has a strong and well-coordinated operation, which has helped it in nabbing criminals on the waterways. We are trained to protect the pipelines, oil sites and other areas that are prone to destruction. It is worthy of note that oil plays a significant role in the development of Nigeria. Oil is the barometer through which the economy’s growth is measured.

    Nigeria derives the bulk of its revenues from oil, hence the decision of the Federal Government to set up the JTF to check the stealing of crude oil.

    What are JTF’s major achievements under your command?

    JTF has arrested a barge few kilometres from Buruntu Village. The barge contained 10 compartments that were fully loaded with crude. The arrest marked a major milestone in the history of JTF. The reason is because the compartments are filled with crude oil, which means the JTF has helped the country in saving a lot of money. Also, another barge which contains an unquantified volume of Automated Gas Oil (Diesel) was arrested by soldiers attached to the Anti-Illegal Oil Bunkering and Oil theft Joint Task Force, after a tip off. Thereafter, the troops followed up and apprehended the barge on its way to the sea. The barge and its products were towed to a safer place and destroyed. Besides, the Force has apprehended 28 suspects for oil theft. Out of this, 25 of the suspects were arrested in six illegal distribution camps while carrying out oil bunkering and theft. The suspects were arrested at oil bunkering sites at Egbokodo, Beneth Island and Otegele in Warri South West Local Government Area of Delta State. Plastic tanks and drums filled with substances suspected to be stolen crude were destroyed and suspects taken to the JTF custody for interrogation.

    Altogether, how many vessels have been arrested so far?

    Over 197 vessels and 300 smuggling boats have been arrested by the JTF in recent times. The vessels were arrested on different occasions, by troops assigned to patrol the waterways to rid the country of activities of oil thieves and other criminals. We are intensifying efforts to arrest more oil vessels and thieves, as part of the on-going efforts to rid the region of criminals.

    JTF has just taken delivery of 30 gun boats to strengthening its operations. What is the cost of the boats?

    It is difficult to say exactly how much was spent in procuring the boats. JTF cannot provide the amount. It is only the Ministry of Defense that can say how much it spent on each boat. The boats are not ordinary because they have different features. The boats are produced in parts, a development which suggests that many manufacturers have input in the production of the boats. This implies that one must get the cost of each part or equipment in the boat before one can arrive at a total cost of each boat. What I know is that the boats are sophisticated and are found useful by the JTF.

    The JTF has declared Zero Tolerance on oil theft, pipeline vandalism and other criminal activities in the Niger Delta. Has this  achieved its goals?

    By declaring Zero Tolerance, JTF is only trying to get out punitive measures on such criminals. We want to see how we can bring to book people that engage in oil theft and pipeline vandalism. Once there is stiffer penalty, it would deter others from such illegal activities. For anybody caught stealing oil, when he is brought before the court, he should remain in custody until the case is adjudicated. We have seen a situation where some oil thieves were released on bail after they have been charged to court. When this happens, they come back to continue the illegal business. We want to put a stop to this, and would not relent in our efforts to achieve the desired results.

    How many oil thieves have been prosecuted?

    JTF has arrested many pipeline vandals and oil thieves and handed them over to the Police for interrogation and prosecution. Thereafter, the body ensures that such criminals were brought before the court for examination. Many of them have been tried, others have not. We want a speedy trial of the criminals to prevent people from going into oil crimes. Our aspiration is that the fight against oil theft must be brought to a logical conclusion.

    What are the effects of these criminal activities?

    These issues are having ecological, psychological and economical effects on Nigeria. Economically, the country is losing billions of dollars to oil theft and bunkering. This money would go a long way in developing the country. Physiologically, people living in areas where pipelines are being vandalised have been disoriented physiologically. Poverty and its by-product of frustration is forcing them to go into crimes. Many people in the riverine areas have no concrete means of earning a living. Even those that are employed cannot live a normal life. They cannot access good medical treatment. We discovered that some people use fuel obtained from vandalised pipelines for domestic use. The destruction of the ecosystem is one of the major effects of pipeline vandalis and oil theft. When criminals break pipelines, oil flows or spills into the river, leading to the destruction of aquatic system. Fish and other animals are killed, a development that results in water pollution. This leads to spread of diseases and reduction in lifespan of people living in the riverine areas. When you destroy the ecosystem, the ecological impacts in most cases are very grave. All these have concomitant effects on the standard of living of people in the region.

    What can be done to address the problems ?

    A collective approach is required to solve the problems, such as oil theft, pipeline vandalism, bunkering, and poor infrastructure inhibiting the growth of the region. The Federal and the state governments, the oil and gas companies (both upstream and downstream) operating in the Niger Delta, and the  communities must come together to provide solution. For instance, the state of infrastructure in the region, especially in the riverine areas, is deplorable and needs to be improved to stop criminal activities. The roads are bad, hospitals are not in place, coupled with the poor standard of living of the people.

    The government has started in the right direction by setting up the JTF and further equipping them to tackle oil theft. But a lot still need to be done to proffer solutions to these problems. For instance, the state of infrastructure in the region, especially in the riverine areas, is deplorable and need to be improved upon.

    In the course of our inspection of the oil facilities, we discovered that people are living in poverty. Some use fuel from the vandalised pipelines as a substitute for kerosene because they cannot buy kerosene for cooking. I think when these people get jobs, they would stop vandalising pipelines. They would also stop stealing crude oil.

    Giving the presence of Warri and Port Harcourt 1&2 refineries in the Niger Delta zone, residents, ordinarily, do not have to complain about fuel scarcity . Do you share this view?

    If the refineries are working, there would not have been problems such as scarcity and hitches in distribution of petroleum products in Nigeria. I think the country needs modular refineries to refine crude oil. By this, I mean refineries with smaller capacities.When we have modular refineries on ground, they would help in refining thousands of barrels of crude oil and the economy would be better for it. Besides the fact that the development would reduce fuel scarcity, it would provide jobs for people. People that are unemployed in the Niger Delta region would get jobs. An African adage says an idle hand is the devil’s workshop. Once people are employed, they would not break pipelines and steal crude oil. Even if they are going to commit such crimes, the rate at which they do it would not be high. Job creation is one way of reducing restiveness in the Niger Delta. I’m advising stakeholders to come together and see how they can build modular refineries, and further provide multiplier effects on the economy.

    Are the communities in the Niger Delta cooperating with the JTF to check oil theft and other criminal activities?

    The JTF is enjoying the cooperation of the host communities in  fighting oil theft. The people have been supportive in this regard. Beyond the support of the oil producing communities, there is the need for the international community to assist Nigeria in the fight against oil theft.

  • Navy destroys 50,000-litre-capacity refineries

    Navy destroys 50,000-litre-capacity refineries

    OPERATIVES of the Nigerian Navy in Rivers State have destroyed two illegal 50,000-litre refineries producing N8 million worth of diesel daily.

    The Base Operations Officer of the Nigerian Navy Ship (NNS) Pathfinder, Rumuolumeni, Port Harcourt, Cdr. Chindo Yahaya, made the disclosure yesterday during the destruction of the refineries in Abonnema, the headquarters of Akuku-Toru Local Government Area of Rivers State.

    He noted that operators of the refineries abandoned their tools and fled after they learnt of the approach of naval personnel and gunboats. “We went out on patrol yesterday (Thursday) night, and based on intelligence report, the patrol team was able to discover the illegal crude oil refining sites at Opobo creek, close to Abonnema.

    “There are two active illegal crude oil refining sites. As at the time the patrol team arrived early this (yesterday) morning, they were still working. The crude oil is being refined to obtain AGO (diesel) and some quantity of kerosene.

    “Based on the sizes of the refining tanks, there are about 15,000 litres of refined AGO, while the remaining crude oil that they are yet to refine runs into thousands of litres.” The base operations officer also stated that the navy destroyed the refineries because its personnel could not make any arrest at the scene. He stressed that in spite of the success recorded by the navy in its fight against oil theft and illegal refining, the personnel would continue to carry out 24-hour air and water patrol of the creeks.

  • IPMAN to build refineries in Bayelsa, Kogi

    The Independent Petroleum Marketers Association of Nigeria (IPMAN) is to  build two ultra-modern refineries  in Bayelsa and Kogi states for about $3 billion to increase the volume of refined products internally.

    Its National President, Elder Chinedu Okoronkwo, said in Lagos that the ground-breaking  would be performed before the end of this year, adding that the  project will be carried out in collaboration with foreign investors.

    He said: “We are proposing to build two refineries in Nigeria – one in Bayelsa and Kogi states  to eliminate fuel scarcity, which is part of the agenda of the present administration. We are in discussion with our foreign investors. The discussion is ongoing and we are reaching agreement, which hopefully will be sealed before the end of July, while the ground-breaking is expected to take place in the fourth quarter of the year.

    “When the proposed refineries come on stream, they will go a long way in ensuring availability of petroleum products to IPMAN members, and ease scarcity in the country. We will ensure that the products get to all nooks and crannies of the country. Besides, the two refineries will help grow the gross domestic product (GDP) of the country because the capital flight on importation of products will reduce drastically,” he said.

    He explained that what the country spends in exporting its crude overseas for refining and the associated cost of importing the refined product, would be drastically reduced when both refineries come on stream. Expectedly, he said the refineries will also create jobs, where lots of Nigerian youths will be gainfully employed, and this will also reduce incessant kidnapping in the country.

    Okoronkwo said the association is also working with the  Nigerian National Petroleum Corporation (NNPC),  Petroleum Products Pricing Regulatory Agency (PPPRA) and Products and Pipeline Marketing Company PPMC) to ensure products availability.

    He said  contrary to rumours, the association’s account was not frozen. “We are ready to commence the project and we hope to make it work because we are also involving our money. We are going on with our legitimate work and no account of the association was frozen.”

    He commended the efforts of the Minister of Petroleum Resources, Mrs Diezani Alison-Madueke and the Managing Director of PPMC, Prince Haruna Momoh, for their commitments to ensuring effective distribution of petroleum products to all the depots across the country.

    He said the commercial arm of IPMAN, NIPCO, is doing well, but that it would do better when the proposed refineries come on stream because it will ensure steady product availability.

    He enjoined Nigerians to move beyond the use of kerosene and switch over to gas so that the gas that is being flared could be harnessed and used. Kerosene should be used for aviation and other purposes. That is what we are doing right now, he said.

    He added: “We want to enlighten Nigerians on the benefits of using gas. Government should also ensure passage of the Petroleum Industry Bill (PIB) to attract investors to open up the industry.”

  • Don’t legalise illegal refineries

    It started last month and it has not quite gone. Filling stations across the country were closed because they had no products. Drivers sat for up to eight hours waiting for fuel. Other stations upped the price as much as 50 per cent.

    This scarcity has brought up the issue of whether or not the several illegal refineries in the Niger Delta should be legalised.

    The illegal refineries are scattered all over the Niger Delta, especially in states such as Bayelsa and Rivers. At the refineries, sights of men pouring oil under locally made burners to keep the fire going are common.

    Security agents, especially the Joint Task Force (JTF) have burnt down hundreds of such oil refineries in recent months. The operators are fond of replacing the refineries quickly. Last year, the Nigeria Security and Civil Defence Corps destroyed 813 illegal oil refineries and arrested over 1,590 oil-related criminal suspects. 1,549 of the suspects were undergoing prosecution as at the beginning of the year. 44 had been convicted. This year, the Navy said it has destroyed over 200.

    Minister of Finance Dr Ngozi Okonjo-Iweala said the country is losing 400,000 barrels of crude oil daily to illegal bunkering and oil pipelines’ vandalism. That means a whopping 20 per cent of the daily production capacity of two million barrels is creamed off by daredevil criminals. She spoke during her appearance before the House of Representatives Joint Committee on Appropriation/Finance in Abuja on July 16, last year.

    She said: “We are losing revenue; 400,000 barrels of crude oil are lost daily due to illegal bunkering, vandalism and production shut-ins. I have to clarify that it is not as if the entire 400,000 barrels is stolen, no. What happens is that whenever the pipelines are attacked and oil is taken, there is a total shut down. All the quantity of oil produced for that day will be lost because it means government cannot sell it and it means a drop in revenue.”

    The Managing Director, Financial Derivatives Company Limited, Mr. Bismarck Rewane, sounded a note of warning, saying a further revenue drop could hurt the nation’s economy beyond repair.

    Rewane said: “If indeed about 400,000 barrels of crude oil are lost every day, that’s about 20 per cent of daily oil production. Remember, crude oil is the mainstay of Nigeria’s economy. If they take away 20 per cent of your salary, you know how that will affect you. Nigeria cannot survive on what will be left if that amount of revenue is lost every day.”

    Rewane’s stance makes more sense when juxtaposed with the fact that although the government has repeatedly maintained that it is committed to measures to diversify the economy, oil export still accounts for more than 80 per cent of nation’s revenue and 95 per cent of the foreign exchange income.

    Many in the Niger Delta are poor and the pollution of their land and fishing waters have contributed to their woes. This state of things is said to be responsible for the massive theft in the area, which has, however, further worsened the pollution in the land.

    One of those leading the campaign for the legalisation of these refineries is Edward Oforomeh, a lawyer and former police superintendent.

    This is his argument: “We have been reading every day, every day that they have been destroying the refinery, destroying the refinery. And they come back. Is this not a vicious cycle? We are just going around the periphery of the whole issue. Solve it by legalising them, licensing them so they would be able to contribute to the coffers of the government.”

    This argument obviously does not take into cognisance the other side of the coin. It also raises posers. Will someone who is sued to stealing fuel for free want to buy from government? What are the health hazard of this crude method of refining fuel? Does legalising the practice bring about no harm to the environment? Are we sure this will curb the loss of much as $1 billion a month to oil theft? What about environmental impact assessment? Will the untold pollution associated with the unrefined method stop?

    We dare say to regularise the illegal market will contribute to impunity.

  • PENGASSAN, NUPENG to protest refineries’sale

    PENGASSAN, NUPENG to protest refineries’sale

    Any attempt by the Federal Government to revisit the privatisation of refineries in the future would be resisted by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the National Union of Petroleum and Natural Gas Workers (NUPENG), PENGASSAN’s spokesman, Oluwaseyi Gambo has said.

    He told The Nation that the two unions were not unaware of the undercover moves by the government to re-open the issue of selling Kaduna, Warri and Port Harcourt 1&2 refineries in the future, and we were ready to resist such ideas.

    He said the two unions have agreed to engage the government in ideological battle, in case it revisits the issue in the near future, adding that the bodies would organise a roundtable discussion, as well as set conditions for the government on the issue.

    He called for the evaluation of the assets of the refineries by an independent organisation and listing of the refineries’ assets on the floor of the Nigerian Stock Exchange (NSE), making Nigerians eligible to buy shares in the refineries. These are the conditions the two bodies are planning to set before the government, in the event that such idea comes up again, he said.

    Others are ensuring that the government, the core investors and the two unions supervise the pre and post privatisation process, as well as guaranteeing the jobs of workers of the two unions.

    ‘’ The two unions: NUPENG and PENGASSAN that are operating in these refineries on behalf of Nigerians must be on the committee that would decide on the privatisation model to be used, should the issue come up in the future. We would ensure that Nigerians have greater participation in the operation of these national assets by way of public quotation on the Stock Exchange.

    ‘’ We would jointly evaluate the worth of the assets so that Nigerians would not be short-changed as there are valid reasons that the refineries would be sold in the future to government’ cronies. We would like to know the nature of the core investors, their capacity to turn around the refineries in case the idea is re-appears on the radar of the government.’’

    He said the sale of Eleme Petrochemical Limited was shrouded in secrecy, adding that the two unions do not want that to happen to the refineries in the event that the government offers them for sale in the future.

    Security of workers, he said, must be ensured to encourage economic growth.

    ‘’We have to agree on the welfare of our members who have been on the front-line risking their lives in the hydro-carbon environment for years,’’ he added.

  • Oil workers reject sale of refineries

    Oil workers on the platform of Nigeria Union of Petroleum and Natural Gas workers (NUPENG), have vowed to resist attempts by the Federal Government to sell the nation’s refineries.

    Its President, Comrade Igwe Achese who disclosed this in Lagos, stressed that statements by Minister of Petroleum Resources, Mrs. Deziani Alison-Madueke that refineries must be privatised were uncalled for.

    Achesi said the development is a diversion and points to the failure of the ministry to address the perennial problem of scarcity of petroleum products being experienced in the country.

    He said NUPENG will resist attempts by the Federal Government to renege on an agreement signed with unions on January 7, 2014 in Abuja, which stipulated that refineries will not be privatised.

    According to Achesi, a Memorandum of Understanding (MOU) reached at that meeting with the government and the two trade unions in the oil and gas sector, NUPENG and PENGASSAN agreed that stakeholders should engage in social dialogue to develop viable and workable business models for the nation’s refineries.

    He noted that billions of naira have been budgeted and purportedly spent on the Turn-Around-Maintenance (TAM) of the refineries with nothing to show for it.

    “The union believes that the transformation agenda of Mr. President on job creation should be enhanced by allowing interested investors set up private refineries, like the Alhaji Aliko Dangote example in the free trade zone in Ondo/Ogun states, which will generate about 85,000 jobs.

    ”We warn that the union will not guarantee industrial peace and harmony if the threat by the Minister to privatise the refineries is carried out by the government, when it should spearhead the establishment of mini and mega refineries to complement what we already have and make sure the old ones  are rehabilitated,” he said.

  • Confessions of man who owned illegal refineries

    Confessions of man who owned illegal refineries

    He relocated to the creeks of the Niger Delta in 2010. His business was to locate, break pipelines and steal petroleum products from them. He was also part of the brains behind many illegal refineries that now dot the creeks. In fact, he was an expert in the crude cooking business.

    However, Tubokeyie Dauyeibo, who hails from Peretorugbene in Ekeremor Local Government Area, Bayelsa State, decided to quit the illegal venture of pipeline vandalism, illegal oil bunkering and refining of petroleum products mid-2011. From an economic saboteur, he turned his arsenal against pipeline vandals and oil thieves.

    He formed the Movement for Eradication of Local Refineries, Pipeline Vandalism (MELPV) to tackle growing economic menace in the region. He told Niger Delta Report that he has the key to stop the economic sabotage.

    On why he decided to abandon the creeks, he said: “I was part of the illegal business. There was a time the Nigerian army ordered people involved in the illegal business to leave it and come out of the creeks. I came to the conclusion that this business we were doing affect the government.

    “So, l told my boys that l was no longer interested in it and asked all of them to join me in searching for another legitimate means of livelihood. I withdrew all my workers from the creeks in 2011. From there, l wrote to Mr. President, the Minister of the Niger Delta Affairs and the Bayelsa State Governor, Mr. Seriake Dickson.

    “They also acknowledged my letter in a reply they sent to me. They said they liked the idea and expressed willingness to work with me. That was how l started the movement after voluntarily withdrawing from pipeline vandalism.”

    Dauyeibo actually wrote a letter to all the stakeholders involved in the war against economic sabotage. The Ministry of the Niget Delta Affairs replied one of his letters. The Minister, Elder Godsday Orubebe, in a letter signed by the Director, Strategic Services, O.F Agabi, commended Dauyeibo for voluntarily withdrawing from the illegal business.

    A copy of the letter said: “I am directed to acknowledge the receipt of your letter dated 15th November, 2011 addressed to Mr. President and the Honourable Minister on your voluntary withdrawal from illegal local refinery business.

    “I am further directed to commend your spirit of patriotism, unsolicited disposition towards the oil sector reforms and transformation agenda of the present administration. Indeed widespread sabotage, crude oil theft and illegal refinery constitute a huge drain on the amount of derivation fund that could have been given to the Niger Delta states to improve the welfare and livelihood of all citizens in the region.

    “We look forward to the continuation of a close-working and mutual beneficial relationship as we partner for the development and progress of the Niger Delta and the nation in general.”

    Despite acknowledging his letter in a response dated April 11, 2012, the ministry according to Dauyeibo had done nothing to consult the movement. He said unless the Presidency through the relevant ministries and state governments consult his movement, the illegal business of economic sabotage would continue to blossom.

    For instance, he described the business as quickest way of becoming overnight millionaires. He recalled that he used to make N5million monthly from the business.

    “I was making a lot of money when l was doing the business. In a month, l could make up to N5 million. I had about 65 workers. My first operation was in Mbiama, Ahoada East Rivers State behind, Odiege community.

    “But you see l lost most of the money to military activities. The Joint Task Force (JTF) used to come and burn our refineries and equipment and we had to spend a lot of money to replace them. We make and spend the money. I was only able to acquire land and build a house.

    “I was both in the business of taking the crude oil and refining it. My refineries were also in Mbiama. But now, l have closed all of them because l don’t want to do the business again. We have all the ideas and techniques of breaking pipelines to take the crude oil, build the refineries and refine the oil,” he said.

    He further lamented that the government had allowed economic sabotage to be entrenched in the region. He described the business as a festering sour, adding that over 7000 youths were doing it.

    He said military actions would not end the sabotage. Besides, he complained that most operatives of the security outfits, who claimed to be fighting the menace were encouraging it through taking of bribes. He said he once gave bribes to some military officials to escape with his products.

    He said: “Over 7000 youths are doing this business in the region. We have the power to bring all of them out. This government in Bayelsa State can take advantage of our movement to improve the revenues accruing to the state. I advise the governor to consult and empower our group to move into the creeks.

    “I know many of the people involved int his matter. For instance in Southern Ijaw Local Government Area, if you can get five of the camps, the business will close. JTF can only burn boats, ovens but after that these people buy more to re-establish themselves.

    “If you burn 20 today, tomorrow over 40 will spring up. It cannot solve the matter. If some people in the bush can get a salary of N30000 monthly, most of them will leave the business. The moment there is empowerment; this problem will be reduced because there is no job anywhere.

    “Military action through navy, JTF and civil defence cannot stop this business. Most of them are collecting bribes from people who are doing this business. I used to also give bribes to them. You must give them what you bargain for.”

    He gave an insight on the methods of building refineries and the risk involved in operating them. But, he said continuous improvements in the construction of the refineries had reduced the risks associated with the business.

    He said: “To build the refineries, we buy plate. Take to the creeks and begin to build it. When we construct it, we begin to feed crude oil into it and begin to cook it. The first product that flows out during the refining process is fuel. When the fuel is flowing out, gas is also escaping through the air.

    “If you are not careful in managing the fuel and gas, it will result to explosion. But the equipment has so much been modernised and upgraded that it hardly triggers explosion. We can build every local refinery.

    “I have also witnessed explosion many times. I have also seen many people roasted in the explosion. I witnessed over 30 persons perish from such explosions. I felt bad because they were burnt.

    “That was why l told my people that l would no longer do the business and l wrote to the government to announce my voluntary withdrawal. I did the business a year and four months and l made millions.

    “When you use fire to cook the fuel, the fuel cannot bring any fire because it is as cold as ice. After the fuel, kerosene then after kerosene is coal tar. That is always the waste. We throw it away. We always dig pit to throw it away.

    “The pipelines are buried inside the ground. When you are looking for it, you cannot get exactly where the pipelines are. We used rods to test the ground and locate the pipelines. So, immediately it touched the pipeline, you will know.

    “After locating the pipeline, the next thing is to work on it to open the point. After that, you will begin to load with hosts. You connect our hose to the pipeline and load almost 15 meters away from the pipeline. We used different sizes of local boats to load.

    “Sometimes, military people used to storm our loading point and we would abandon our facilities and run away. But none of boys had been arrested or shot by the military people. Wherever there is pipeline, as far as there is a river, we are capable of vandalising the pipeline. No pipeline is safe in this region.”

    The former pipeline vandal said there were many buyers for the illegal products. According to him the existence of the buyers encouraged the business. He insisted that local and international markets for illegally refined products had continued to expand.

    He said: “We have many buyers that used to patronise us. Some come from the sea. They come with vessels to load. Vessels can reach the areas that are close to the sea soil. They come there to load. We also used small boats to load the products and take them to the vessels close to the sea.

    “Even the white men come load the product. If they can stop the channel where vessels come through, the business will collapse. It is the market that is encouraging the business because when you cannot sell your products, the business will collapse.

    “The buyers strengthen the business of vandalism and illegal refining of products. We have a business chain. Some vandalise to get the product, others refine while other come to buy. So we have a chain of three channels.”

    On why he joined the business in the first place, he said: “I went to Government Technical College, Port Harcourt, Rivers State from 2006 to 2009. After the school there was no work. I looked for jobs but could not get any. So I decided to join the business. I used the experience I gained in technical school as a welder to begin the business. I started in 2010 and stopped in 2011.

    He gave more reasons why he stopped the illegality. He said: “But when l started the business and discovered the infections and effects it had in our health and environment, l decided to stop it. We want the government to empower us so that we will have no reason to go back to the business.

    “When I was doing the business, l noticed the pollution. The river, the mangroves and the fish were collapsing. The land became infertile and was unable to produce food and even the ground was caving in. We were doing the business because of money but when we saw the environmental impact, we discovered it was bad and l decided to leave it.

    “Illegal refineries affect the country and at the same time affect the Niger Delta region. Government depends on it for revenue but when we take it, it affects the government and when we consider it, we also know that it affects the government. We have to partner with the government to stop the menace. We can also talk to others who are still doing the business to stop it.

    “Niger Delta is in danger if people refuse to leave the business. If the government does not act quickly to stop the business, it will bring problem to the Niger Delta.

    “I see earthquake coming to the region because all the areas where this thing is done is collapsing. It will ruin all the underwater assets in the region. Fish has left our waterways because of this business. Many have also died. It has affected the farming system. There will be serious environmental disaster.

    “I am a welder by profession. What l do since l left the illegal business is to survive on my skills. I thought of how to help my country having been in the creeks and knowing how entrenched the illegal business is, l decided to form the movement to fight it”.

    On whether he could stop the sabotage, he added: “This movement is founded to stop illegal bunkering activities taking place all over the Niger Delta. It is also designed to discourage the setting up of illegal refineries that now dot the creeks of our blessed region.

    “I can stop pipeline vandalism and illegal bunkering with my experience not by violence. The federal and state government including all agencies involved in war against oil theft should consult our movement.

    “They should come and carry us along and with our experience we can stop this menace. JTF cannot be ahead of us, we should be ahead to stop this thing. We know how to stop the buyers.”

     

     

     

     

     

  • TUC hails reversal of planned sales of refineries

    The Trade Union Congress (TUC) on Thursday commended the Federal Government’s decision not to sell the nation’s four refineries.

    Labour leaders from the National Union of Petroleum and Natural Gas Workers (NUPENG) and the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) had on Tuesday, reached an agreement with the Federal Government on the refineries.

    “The Federal Government is not selling the nation’s refineries,’’ a communiqué issued at the end of the meeting between the representatives of both parties said in part.

    They agreed that turn-around maintenance would be carried out in the refineries.

    Speaking with the News Agency of Nigeria (NAN) in Lagos, the TUC President, Mr. Bobboi Kaigama, described the development as a pointer to the fact that the government was listening to constructive criticism.

    “It is the best thing that has happened because there is no way the government can go on and sell the refineries without critical stakeholders’ input.

    “ So, government has done the right thing by rescinding its decision to sell the refineries.

    “We commend the government for heeding calls and advise that it should reverse its decision,’’ he said.

    The labour leader advised all parties in the agreement to ensure that they kept their commitments.

    “An agreement is an agreement; it is expected that when people go into an agreement, it is binding on all parties.

    “ It is expected that whatever agreement was reached at that meeting would be respected and implemented to the letter,’’ he said.

    Kaigama urged employers of labour to always see their employees as partners in progress.