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Tag: oil theft

  • Asari Dokubo Meets President Tinubu, Vows Support to End Oil Theft

    Asari Dokubo Meets President Tinubu, Vows Support to End Oil Theft

    In a meeting with President Bola Tinubu on Friday, the Leader of the Niger Delta Peoples Volunteer Force (NDPVF) Asari Dokubo, pledged his commitment to ensuring the success of the new administration, particularly in combating oil theft in the Niger Delta region.

    Speaking with the media after the meeting at the presidential villa, Dokubo emphasized his determination to put an end to oil theft, stating, “I will stake everything to make ‘my father’ succeed. That is a promise I have given to myself and him. Oil theft would be stopped. There would be zero oil theft in the Niger-Delta.”

    It would be recalled that last November, Dokubo revealed that the individuals funding this illicit activity in the Niger-Delta were not from the region.

    He asserted that those complicit in the act from the region are being financially supported, in most cases, by outsiders and represent a negligible portion of the population.

    The Niger-Delta leader further disclosed that a significant amount of stolen oil was being transported to neighbouring countries such as Togo and Ghana, with the aid of high government officials.

    “The people who bring these tankers are not Niger Deltans. If they are Niger Deltans, they would be so few, maybe those who have access to government and government money,” he said.

    Dokubo went on to describe the elaborate process involved in stealing and transporting the stolen oil, highlighting the complex network and substantial financial resources required running into billions of US dollars.

    Meanwhile, stakeholders from the Niger Delta region have sent a message to President Tinubu in response to his recent directive to “crush” oil thieves, urging him to approach the issue with care.

    The second National Vice President of the Ijaw National Congress (INC) Nengi James, expressed concern over the involvement of top military officers and political figures in sponsoring illegal oil refining and crude oil theft.

    James pointed out that the organised crime extends beyond the activities of local refineries and involves the ownership of vessels and the collaboration of the military.

    He raised questions about the military’s presence in the Niger Delta region and their involvement in illegal activities.

    The stakeholders emphasized the need for a comprehensive approach to address the issue, urging the authorities to tackle the involvement of high-ranking military officials and political elites rather than solely focusing on surveillance and blaming local communities.

  • Oil theft: FG releases seized Norwegian oil tanker after plea bargain

    Oil theft: FG releases seized Norwegian oil tanker after plea bargain

    The Nigerian Navy on Sunday returned a Norwegian-registered vessel, MT Heroic Idun, caught attempting to steal Nigeria’s crude oil in August 2022.

    The navy arrested the oil tanker and its 26 Indian, Pilipino, Sri Lankan, and Polish nationals in August 2022, and later convicted them in court and fined $15 million.

    Capt. Mohammed Adamu, Commanding Officer, Forward Operating Base, Bonny, handed over MT Heroic Idun to its owner, Idun Maritime Limited at Bonny, Rivers, after it met with the plea bargain conditions.

    He said after the seizure of the merchant ship, its crew members were charged to the Federal High Court in Port Harcourt for trial in January.

    “The Very Large Crude Carrier (VLCC), MT Heroic Idun and its 26 foreign crew were arrested after entering Nigeria’s waters unauthorized with intent to lift crude oil.

    “Subsequently, they were charged to court and later pleaded guilty as well as elected voluntarily to enter into a plea bargain agreement with Nigeria.

    “The vessel and its crew also agreed to make restitution to the Federal Government.

    “The plea bargain was in the interest of justice, public and for public policy interest in line with Section 270 (5) (a) of the Administration of Criminal Justice Act 2015,” he said.

    Adamu said after the conviction and sentencing by the court that MT Heroic Idun and its owners were mandated to pay conviction fines and restitution.

    “The owners also agreed to make an apology to the Federal Republic of Nigeria both in print and electronic media as well as Lloyd’s List.

    “On its part, the Federal Government agreed not to further criminally prosecute and/or investigate the vessel, her owners, charterers or her crew in the matter of her crime against the state.

    “The owners of the vessel later apologized to the Federal Government on the Lloyd’s List on May 12 while the same apology was published in the Punch Newspaper of May 18.

    “Subsequently, MT Heroic Idun, having fulfilled all the aforementioned conditions of the plea bargain to the satisfaction of the court, has been released to its owners, Idun Maritime Limited,” he added.

    The navy officer said the vessel’s release had the consent of the Federal High Court as well as approval of the Federal Government of Nigeria.

    He said the prosecution of the seafarers demonstrated the navy’s commitment to ensure that only valid and authorized vessels were allowed into the country.

    According to him, the navy will continue to ensure that only vessels that obtain permits and have security clearance are allowed to lift crude oil or gas from the country.

    “Consequently, all maritime stakeholders, key players and seafarers operating within the Nigeria waters are to carefully conduct their maritime operations within the extant regulations and observance of the law.

    “We will bring to book those whose operation infringe on the provisions of the Suppression of Piracy and Other Maritime Offences (SPOMO) Act, 2019 and all maritime laws and conventions acceded to Nigeria,” he warned.

  • Reps probe: Malami dismisses involvement in alleged $2.4b crude oil theft

    Reps probe: Malami dismisses involvement in alleged $2.4b crude oil theft

    The Attorney-General of the Federation, Mr Abubakar Malami has dismissed his involvement in the House of Representatives Committee investigation alleged oil loss of over $2.4B dollars in oil revenue.

    The oil revenue is said to be from the illegal sales of 48 million barrels of crude oil export in 2015 including crude oil exports from 2014 till date.

    He said the investigative hearing by the committee was not necessary because it has nothing to do with his office and personality.

    The committee had severally invited the Minister which was not honoured, this however led the committee to reissued a summon against the Minister on May 24.

    Rep. Mark Gbillah, the Chairman of the Committee said the minister was invited in order for him to shade light on topical issues concerning involvement of his office regarding receipt authorisation and general payment remitted over the subject matter.

    Malami had earlier claimed that the matter as raised by the whistleblower leading to his involvement was baseless and lacking in substance

    Reacting, Malami said he was not privy to any documents involving him, adding that the Auditor General of the Federation had not also made documents available to him or his office.

  • Forensic audit report indicts DPR for Nigeria’s oil loss

    Forensic audit report indicts DPR for Nigeria’s oil loss

    Nigeria’s huge oil loss estimated at 600, 000 barrels of crude per day has been a major source of concern to the government and stakeholders, prompting an investigation which has now indicted the Department of Petroleum Resources (DPR).

    Historically, Nigeria has been the largest exporter of oil in Africa, despite a lack of infrastructure that has hindered the country from being able to export at 100 per cent capacity.

    But in recent times, oil production in the country fell from 1.4 million barrels per day (bpd) at the start of 2022 to 900, 000 bpd as of September, plunging the country to fourth place among largest oil producers in Africa, behind Angola, Algeria and Libya.

    The Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL) Mele Kyari, claimed 600,000 barrels of crude oil produced per day were unaccounted for, owing largely to oil theft.

    However, a forensic audit conducted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), discovered that between January 2020 to November 2022, 40 per cent of the volumes of crude oil losses in Nigeria are due to measurement inaccuracies and not theft.

    Chief Executive Officer of the NUPRC Gbenga Komolafe, also said that Nigeria was currently flaring about 10 per cent of gas produced, in a country where the cost of 12.5kg of cooking gas is about 40 per cent of the N30, 000 minimum wage.

    Komolafe further disclosed that agents of the commission will henceforth, assume responsibility for the deployment and maintenance of metering facilities across Nigeria’s oil and gas establishments, for transparency in hydrocarbon accounting.

    “The reform measure adopted by the commission offers a paradigm shift from the trajectory in Nigeria’s hydrocarbon measurement since oil was discovered in Nigeria in Oloibiri in 1956 and is aimed at ensuring that no one becomes a judge in his own case,” he said.

    The DPR is responsible for maintaining records on petroleum industry operations, particularly on matters relating to petroleum reserves, production, exports, licences and leases.

    It also monitors the Petroleum Industry operations to ensure that are in line with national goals and aspirations including those relating to Flare down and Domestic Gas Supply Obligations.

    Nigeria Extractive Industries Transparency Initiative (NEITI), had also previously accused the agency of failing to install meters at wellheads and the lack of capacity to monitor deep offshore, thereby making it difficult to ascertain the exact amount of crude oil produced in the country.

    However, DPR’s Head of Public Affairs, Paul Osu, insisted that every litre of crude produced in the country was adequately captured during the process of extraction.

    Osu explained that the DPR had launched the National Production Monitoring System (NPMS), as part of efforts to boost crude accounting process from production to export.

    “NPMS is an online platform for the direct and independent acquisition of production data from oil and gas facilities in Nigeria and enables DPR to exercise surveillance, perform production monitoring and data analysis for utilisation and forecasting,” he said.

  • Oil theft: Nigerian Army recovers 445,000 litres of crude oil

    Oil theft: Nigerian Army recovers 445,000 litres of crude oil

    The Nigerian Defence Headquarters says it has recovered 445,000 litres of crude oil, 1.04 million litres of Automotive Gas Oil, 22,000 litres of Premium Motor Spirit (PMS) and 2,000 litres of Dual Purpose Kerosine from oil thieves in the Niger-Delta region.

    Director of Defence Media Operations, Maj.-Gen. Musa Danmadami, who disclosed this on Thursday while giving update on military operations said cumulatively, oil thieves were denied a total of N713.6 million in the last three weeks.

    Troops of Operation Delta Safe the troops of Operation Delta Safe also destroyed 57 illegal refining sites and apprehended 21 oil thieves in Bayelsa, Delta and Rivers states within the period under review.

    “The large quantity of illegal crude oil and other petroleum products recovered and destroyed and the number of arrested oil thieves and pipeline vandals, shows the unrelenting efforts by the troops of Operation Delta Safe in denying them freedom of action,” Danmadami said.

    The army also confiscated eight tankers, 63 vehicles, two speed boats, one thug boat, 14 motorcycles, one tricycle, three bicycles, 11 pumping machines and three outboard engines.

    TheNewsGuru.com (TNG) recalls that in October, the Nigerian National Petroleum Company (NNPC) Limited disclosed it had uncovered an illegal four-kilometre oil connection from Forcados Terminal into the sea that operated for nine years undetected.

    The company further said that the Afremo platform, operated by the Shell Petroleum Development Company of Nigeria (SPDC), was the suspected exit point of the stolen crude.

    Shell has launched an investigation to establish where the theft lines end and whether there have been any breaches of the unmanned platform’s security barriers or any unauthorised use of the equipment on it.

    Oil theft in the country has been ongoing for at least 22 years but the dimension and rate it assumed in recent times is said to be unprecedented.

  • 4 startling revelations that shook the oil sector in 2022

    4 startling revelations that shook the oil sector in 2022

    The Oil and Gas sector has remained the mainstay of the Nigerian economy despite Government’s best efforts at diversification into Agriculture and Mining in order to manage volatility and provide a more stable path for equitable growth and development.

    In 2022, Nigerians experienced the results of a supply shock with a tight oil supply and supply disruptions that drove prices as high as N300 per liter in some parts of the country and forced food inflation to soar to 23.7 per cent as of October.

    Nigeria failed to benefit from higher crude oil prices witnessed this year in the global oil market in the wake of Russia’s invasion of Ukraine which not only caused a global disruption in the oil and gas supply but also affected every economic activity reliant on hydrocarbons.

    Crude oil prices skyrocketed from $74.1 per barrel in January and peaked at $123.7 per barrel in June, according to Statista.

    Oil production has been on the decline since mid-2020, reflecting low investment and significant leakages associated with poor maintenance and theft.

    Here are the four most outstanding revelations that shook the Nigerian oil sector in 2022:

    1. Importation of substandard fuel: The Nigerian National Petroleum Company Limited (NNPCL) said it received a report from its quality inspector on 20th January 2022, confirming the presence of emulsion particles in Premium Motor Spirit (PMS) cargoes shipped to Nigeria from Antwerp-Belgium. This resulted in a supply disruption and created long fuel queues that characterised the rest of the year.
    2. Drop in Gross Domestic Product (GDP) contribution to the Nigerian economy: According to the latest GDP figures released by the National Bureau of Statistics (NBS), the contribution of the oil sector to the economy fell from 6.33 percent in the second quarter of 2022 to 5.66 per cent in the third quarter. Figures recorded in the corresponding period of 2021 showed that the sector contributed 7.49 percent to GDP.
    3. Over 700, 000 barrels of crude stolen per day: Nigeria’s Minister of State for Petroleum Resources Timipre Sylva, disclosed that the country loses at least 700, 000 barrels of crude per day. In October, an intercepted vessel, MT Deima with International Maritime Organisation Number: 7210525 was later set on fire by Nigerian security agents, amidst calls for a probe.
    4. Nigeria unable to meet OPEC quota: The country’s crude oil production which hovers around 900, 000 barrels per day falls far short of the quota of 1.826 million barrels per day quota approved by the Organisation of Petroleum Exporting Countries (OPEC), a trend which industry analysts describe as a fiscal time bomb. Pipeline vandalism, lack of investment in the sector, operational and maintenance issues have been identified as some of the factors responsible for the decline in crude oil production.
  • 2023: I’ll name, shame oil thieves as president – Atiku

    2023: I’ll name, shame oil thieves as president – Atiku

    Candidate of the People’s Democratic Party (PDP) for the 2023 presidential election, Atiku Abubakar has said there will be no hiding place for oil thieves and their accomplices if he becomes president.

    Atiku made the pledge today when he interacted with a broad spectrum of corporate Nigeria under the aegis of the Business Dialogue Stakeholders Forum at Eko hotel in Lagos.

    Atiku also said he would, in the interest of national development, confiscate all oil blocs allocated to some Nigerians who have failed to make them operational.

    The former Vice President, who promised to sustain frequent interactive sessions between government and the country’s’ business class when voted to power, equally outlined the ways he would tackle what he described as an ailing economy.

    “If you are not going to develop oil blocs given to you, we will take it away and give it to those who will develop it. We will also assemble the names of those involved in oil theft, publish same and prosecute them,” Atiku told the stakeholders.

    On his plans to boost the oil and gas sector, Atiku recalled that under the administration of ex-President Olusegun Obasanjo the quota of oil production was earmarked for increase to four million barrels per day.

    That plan, he explained, would be resuscitated and sustained beyond the projected figure, when he is voted into office next year, pointing out that in order to do this successfully, the Petroleum Industry Act (PIA) and any other enabling law would be invoked.

    “When we were in government, we started this process. However, there were hiccups. We were unable to pass the legislation to encourage IOCs to partake in the sector. We will go back to where we started,” he said.

  • Oil Theft: Polish, Indian governments seek access to suspects

    Oil Theft: Polish, Indian governments seek access to suspects

    Nigerian  Government has said it’s ready to grant consular access to foreign countries whose citizens were apprehended and arraigned for oil theft in the country.

    The foreigners had evaded arrest on Nigerian waters but got apprehended by the Navy in  Equatorial Guinea and were later brought back to Nigeria.

    The suspects  were apprehended while  boarding the MT Heroic Idun vessel.

    According to the Nigerian Navy, the vessel arrived at the Akpo field to lift crude oil within the field but had no chance to load before being accosted by the Nigerian Navy Ship Gongola at the terminal.

    After 60 days of diplomatic negotiations on the matter, the super tanker was handed over to Nigeria to continue negotiations.

    Sixteen of the foreigners onboard were also arraigned for offences bordering on conspiracy, stealing, attempt to deal in crude oil, and false pretenses.

    Speaking during a joint briefing on the repatriation of the vessel at the Naval Headquarters in Abuja on Tuesday, the Minister of Foreign Affairs, Geoffrey Onyeama, said the Indian and Polish embassies had requested consular access.

    Onyeama, who was represented by the Director of Legal and Consular Department, Nigerian Ministry of Foreign Affairs, Nicholas Ella,  said, “I’m aware of the diplomatic comatose regarding this matter which you stated earlier. I want to also stress and congratulate our mission in Equatorial Guinea for the work they have done. Of recent, we received requests from the Indian Embassy and the Polish Embassy for them to visit and I think more will come requesting consular access.

    “I want to assure the international community that Nigeria, being a responsible member of the international community, is ready to respond to its international obligation and grant consular access when requested through the right channel. You don’t need to disturb the Nigerian Navy, go through the Ministry of Foreign Affairs.”

    Chief of Naval staff, Vice Admiral Awwal Gambo, explained that the vessel owners are painting flase pictures in the media to whip up sympathy from the international community.

    Gambo, who was represented by the Chief of Plans and Policy, Rear Admiral Saidu Garba, said the vessel committed an offence against the Nigerian government for entering the restricted zone as well as accusing a Nigerian Navy Ship of piracy on International Maritime Reporting Platforms, among others.

  • African network lends voice to call for action against oil thieves

    African network lends voice to call for action against oil thieves

    The Africa Network for Environment and Economic Justice (ANEEJ), has called on the ongoing 11th Session of the United Nations Convention Against Transnational Organised Crime (UNTOC) in Vienna, Austria to take action to expose and deal with all those connected with oil theft in Nigeria in order to stop the economic haemorrhage.

    In a statement signed on Wednesday by the Executive Director of ANEEJ Rev David Ugolor, who is also attending the convention in Austria, the Network noted that delegates at the 11th session of the UNTOC cannot afford to end the session without committing to deal with the issue of oil theft which for years has threatened the economy of Nigeria and other oil-producing countries in the Gulf of Guinea thereby exacerbating poverty in the region.

    “We call on the 11th Session of the UNTOC to declare oil theft as a global threat to global financial system and the fight against climate crisis.

    “Statistics of oil theft among major oil-producing countries show that Nigeria is losing as much as 400,000 barrels of oil per day which equates to losses of US$1.7-billion a month. This is a huge loss compared to a total theft of 5,000 to 10,000 bpd and 2,000 to 3,000 bpd in Mexico and Indonesia respectively.” Ugolor said.

    He noted that the Russia-Ukraine war has further put pressure on the world to increase fossil fuel production to meet global energy demand.

    However, Nigeria has not profited from the increased demand as transnational oil thieves who have been in the throes of the Nigerian economy have cashed in on the situation to further bleed the nation’s economy aided by Nigerian government officials.

    ANEEJ’s Monitoring and Evaluation Manager Sandra Eguagie, also noted in the statement that oil theft was a serious transboundary organized crime capable of undermining development and democracy in Africa.

    She further said oil theft was perpetrated by a criminal network beyond Africa which feeds the illegal market that is sustaining the global illicit financial economy.

    “We are here to flag the issue of oil theft as a serious organized crime that is fleecing the Nigerian economy. We want action from the UNTOC,” Eguagie added, urging the UNTOC to take deliberate actions to end oil theft in Nigeria.

    Pursuant to article 32 of the United Nations Convention against Transnational Organized Crime, a Conference of the Parties to the Convention was established to improve the capacity of States Parties to combat transnational organized crime and to promote and review the implementation of this Convention.

    The 11th Session of the Conference of Parties is taking place in Vienna from 17th – 22nd October 2022.

  • Kyari claims significant reduction in oil theft as group calls for probe

    Kyari claims significant reduction in oil theft as group calls for probe

    The Group Chief Executive Officer of the Nigeria National Petroleum Corporation Limited (NNPCL) Mele Kyari has claimed that the scale of oil theft in the Niger Delta, following the discovery of several illegal pipes, had significantly reduced.

    Kyari made the claim during his address on the second day of the PENGASSAN Energy and Labour Summit, on Tuesday in Abuja.

    According to him, cooperation with security agencies has significantly reduced oil theft and the country would have access to more crude and revenue, in the coming weeks.

    The new assertion made by the NNPCL’s boss comes barely two weeks after he told the Senate’s joint committees on Gas and Petroleum (Upstream and Downstream) that a reality test showed the country was losing up to 600 barrels of crude per day (bpd).

    “As a result of oil theft, Nigeria loses about 600,000 barrels per day, which is not healthy for the nation’s economy, and in particular, the legal operators in the field, which had led to a close down of some of their operational facilities,” Kyari had said.

    He also disclosed that oil theft in the country had been going on for over 22 years, but had assumed an unprecedented dimension and rate in recent times, adding that aerial surveillance carried out by the Corporation of the affected areas revealed that “the economic saboteurs carrying out their activities unchallenged and unperturbed”.

    Meanwhile, authorities say 395 illegal refineries have been deactivated, 49 trucks seized and 274 reservoirs and 1,561 metal tanks destroyed so far.

    A civil rights advocacy group, the Human Rights Writers Association of Nigeria (HURIWA), has alleged that there was a deliberate attempt to cover up the involvement of military personnel in oil theft in the Niger Delta region.

    HURIWA’s National Coordinator Emmanuel Onwubiko, corroborating the position of Human Rights Lawyer Femi Falana, described “as sacrilegious, contemptible and scandalous”, the justification by the military, of the destruction of a vessel loaded with stolen crude oil in the Niger Delta area and has called for a probe.

    The vessel with registration number L85 B9.50, was arrested two Thursdays ago, by a combined team from the Nigerian Navy and a private pipeline surveillance team, Tantita Security Services led by a former militant leader, Government Ekpemepulo, popularly known as Tompolo.

    The vessel was apprehended close to Escravos in Warri South West Local government area of Delta state with seven crew members onboard and about 600 cubic metres of illegally lifted crude oil.

    HURIWA called for the constitution of a judicial panel of inquiry on the oil bunkering vessel after the military claimed that the swift destruction was in line with the “rules of engagements”.

    Nigeria is also facing gas and revenue shortages as the Liquefied Natural Gas (NLNG) Limited declared force majeure on its 22 million tons per annum (mtpa) processing plant due to widespread flooding that has disrupted gas supply to the company.

    “The notice by the gas suppliers was a result of high floodwater levels in their operational areas, leading to a shut-in of gas production which has caused significant disruption of gas supply to NLNG,” NLNG’s General Manager, External Relations and Sustainable Development Andy Odeh said.

    He added that NLNG was determining the extent of the disruption in order to mitigate its impact on the economy.