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Pipeline Vandalism: Operators Task FG On Modern Technology

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Fire fighters battling to put out fire from two burning fuel tankers loaded with petrol at ascon filling station on Lekki road 13 in Lekki, Lagos, recently.     Photo: NAN

Fire fighters battling to put out fire from two burning fuel tankers loaded with petrol at ascon filling station on Lekki road 13 in Lekki, Lagos, recently. Photo: NAN

Some oil and gas experts
have urged the Federal Government to deploy modern technology in combating the activities of crude oil thieves in the Niger Delta area of Nigeria.
They told newsmen in Lagos that such technology should include Closed Circuit Television and other electronic devices that could indicate that a pipeline was being tampered with.
They also said that such devices gave timely images and reports to the Nigerian National Petroleum Company (NNPC) and other relevant bodies monitoring the pipelines to promptly tackle the problem.
The experts in the industry added that deploying such electronic monitoring devices would assist in reducing the huge national revenue loss through illegal bunkering of crude oil.
Managing Director, Tec Flow Oil and Gas Ltd., Mr Simon Francis, said the issue of oil theft was a serious challenge that needed to be dealt with through a new mechanism.
Francis said that the use of technology would contribute immensely to combating crude oil theft and incessant vandalism in the nation’s pipeline network.
He also urged the government to encourage private sector participation in the oil sector, adding that the organised private sector participation would expand the profit outlay of operators.
“Crude oil theft remains a big challenge to the socio-economic development of the country.
“Government should also deregulate the downstream sector of the oil and gas. This is the only way to address fuel scarcity,’’ he said.
Former National Publicity Officer, Petroleum, National Gas Senior Staff Association of Nigeria (PENGASSAN), Mr Seyi Gambo, said that government should focus more on ways to liberalise the downstream petroleum sub-sector.
According to Gambo, the passage of the Petroleum Industry Bill remains the only way to address sector’s challenges.
He said that the bill identified specific reforms needed to be championed by the NNPC and operators in the entire sector.
He advised the government to privatise the country’s refineries since government could no longer maintain them adequately.
“Government can embark on modular refineries in some state as such investments could be part of the investments that will create jobs for Nigerians,” he said.
Contributing,  Director of Operations, IPMAN, Mr Mike Osatuyi, also lamented the non-passage of the Petroleum Industry Bill by the National Assembly.
Osatuyi said that the bill would have gone a long way to address the problems in the petroleum industry, adding that the industry should be handed over to private investors.
The IPMAN boss urged the government to diversify its sources of power generation, adding that it should exploit other alternative sources of energy.
“Government should tap into other cleaner and renewable sources of energy, like solar, wind and other renewable energy sources.
“The incessant vandalism of gas pipelines and other electricity apparatus remains a big challenge for government to tackle.
“The government should also arrest and prosecute anybody caught in the act of vandalism to serve as a deterrent to other criminals.

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Oil & Energy

AEDC Confirms Workforce Shake-up …..Says It’ll Ensure Better Service Delivery

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The Abuja Electricity Distribution Company(AEDC) has announced a major restructuring exercise as part of efforts to reposition the utility firm for improved service delivery, operational excellence, and stronger customer focus.
In a statement issued by the AEDC management late last Thursday, the company said the move aligned with its ongoing corporate transformation strategy designed to make AEDC more agile, innovative, and customer-centric.

As part of the restructuring, the company said it had promoted high-performing employees, released retiring staff, and disengaged others whose performance fell below expected standards.

It added that it has also begun implementing a comprehensive employee development and customer management plan to strengthen its service delivery framework.

“In line with its corporate transformation strategy, Abuja Electricity Distribution Company has announced a restructuring exercise aimed at delivering improved services to its customers as well as enhanced operational efficiency and excellence.

“The restructuring is in line with our strategic direction to become a more responsive and efficient organisation, capable of delivering world-class service to our customers.

“As part of the transformation, the Company has promoted high-performing staff, released retiring employees and those performing below par, and has put in motion the implementation of a robust employee development and customer management plan aimed at driving AEDC’s customer-centric focus,” the company said.

AEDC noted that the reforms are part of its broader commitment to provide reliable, safe, and sustainable electricity to customers across its franchise areas, including the Federal Capital Territory and the states of Niger, Kogi, and Nasarawa.

The firm further pledged to continue investing in infrastructure upgrades, digital technologies, and operational innovations to improve service reliability and customer satisfaction.

“With a strong commitment to delighting its customers, AEDC continues to contribute to the growth and development of Nigeria’s energy sector through investments in infrastructure, innovative technologies, and sustainable practices.

“AEDC consistently seeks to improve the quality of life for its customers, promote efficient energy usage, and actively engage with its communities,” the statement added.

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Economic Prosperity: OPEC Sues For Increase In Local Crude Oil Refining 

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The Chairman of the Organisation of the Petroleum Exporting Countries (OPEC) Board of Governors, Ademola Adeyemi-Bero, has advised local oil refiners in Nigeria to increase in-country refining of crude, noting that value creation for crude oil will support economic growth and development.
Adeyemi- Bero who gave the urge at the Nigerian Association of Petroleum Explorationists Pre-Conference Workshop in Lagos, insisted the country must move away from decades of crude exports and focus on retaining value within the local economy.
He said, “We’ve been an oil and gas exporting country. We produced oil; once there was oil, we put it in a tank and sent it abroad. 40 or 50 years later, people blame Shell and others, but I don’t. They are businesses looking for feedstock for their industrialisation. If you give it to them, they’ll still take it.”
Adeyemi-Bero, who is also the Chief Executive Officer of First Exploration & Petroleum Development Company, said Nigeria had a responsibility to develop its energy resources locally and use them to drive industrial growth, rather than depend on foreign markets, adding that President Bola Tinubu would have returned fuel subsidies if the Dangote refinery had not been there to produce fuel locally.
”Just look at the impact the Dangote refinery has had on foreign exchange and gross domestic product growth. You can imagine what would have happened if that had occurred 50 years ago. If the president had said, ‘I’m cancelling subsidies, and I’m not going to allow multiple exchange rates.’ We didn’t have the option of having petroleum products in this country; I’m sure he would have changed his policies and gone back to subsidies. It’s as simple as that. Let’s not over-aggregate.
He continued, “If you go to Saudi Arabia today, if you go to the UAE, if you go to Qatar, if you go to Malaysia, if you go to Brazil, they are expanding the value chain and keeping it in their space. Now, one man built a refinery; we fought him, we argued with him. But the impact of that Dangote refinery on our GDP and foreign exchange is big.”
According to him, local refining and crude utilisation would also help stabilise the naira and strengthen the nation’s economy.
“If we can sell some oil in naira, let’s do it if it works for both parties. The strength of the naira is what it commands in trade. This is why nobody wants the naira outside this space, but the day you can pay for oil in naira because both parties agree, it strengthens the naira,” he said.
Adeyemi-Bero stressed that Nigeria must deliberately reduce its dependence on exports and focus on value creation to avoid future economic decline.
“We need to decline exports. All of us like to sell, but the person who will buy from us will be willing to buy at the right price. ‘I’m investing in dollars, so don’t come and buy in naira. If I invest in dollars, then pay me in dollars.’ But we could make that happen,” he stated.
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Senate Seeks Mandate To Track, Trace, Recover Stolen Crude Oil Proceeds

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The Senate Ad-hoc Committee on Oil Theft and Sabotage, has sought for an expanded mandate to track, trace, and recover stolen crude oil proceeds both locally and internationally.
Chairman of the committee, Ned Nwoko, made the call while speaking with newsmen, on the progress made so far by the committee, in Abuja, last Thursday.

Nwoko who is also the Senator representing Delta North Senatorial District, said that forensic reviews show over S22b, S81b and S200b remained unaccounted for across different audit periods.

“This is a national call to action. Nigeria cannot afford to continue losing trillions to corruption, inefficiency, and criminal networks.

“I remain committed, alongside my colleagues, to ensuring accountability, recovery, and reform within the oil and gas sector.

Nwoko stated that the Committee had earlier presented its interim report before the senate saying “Our investigation has so far uncovered massive revenue losses amounting to over $300 billion in unaccounted crude oil proceeds over the years.

“This represents one of the most troubling cases of economic sabotage our nation has ever faced.

“We have made far-reaching recommendations to end this long-standing menace.

“There is need for strict enforcement of international crude oil measurement standards at all production and export points.

He urged the federal government to mandate the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to deploy modern, tamper-proof measuring technology or return this function to the Department of Weights and Measures under the Ministry of Industry, Trade, and Investment.

The senator called for the deployment of advanced surveillance systems, including drones, to assist security agencies in combating oil theft.

He also called for the creation of a Special Court for Crude Oil Theft to ensure swift prosecution of offenders and their collaborators, saying it would also go a long way in tackling the challenge.

“We must also ensure the full implementation of the Host Communities Development Trust Fund under the Petroleum Industry Act (PIA) to empower local communities and reduce sabotage.

“Ceding abandoned oil wells to the NUPRC for allocation to modular refineries to support local production and job creation is also very vital in fighting the menace of oil theft and sabotage,” Nwoko further said.

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