Oil & Energy
Pipeline Vandalism: Operators Task FG On Modern Technology
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.
Nigeria’s losses due to crude oil theft has been said to be more significant than those of some other members of the Organisation of Petroleum Exporting Countries(OPEC).
The Chairman, Senate Ad- hoc Committee on Crude Oil Theft, Senator Ned Nwoko, made this known in an interview with newsmen in Abuja.
Nwoko noted with dismay the detrimental impact of the issue, which, he said include economic damage, environmental destruction, and its impact on host communities.
According to him, the theft was not only weakening the Naira, but also depriving the nation of vital revenue needed for infrastructure, healthcare, education and social development.
The Senator representing Delta North Senatorial District described the scale of the theft as staggering, with reports indicating losses of over 200,000 barrels per day.
Nwoko disclosed that the ad hoc committee on Crude Oil Theft, which he chairs, recently had a two-day public hearing on the rampant theft of crude oil through illegal bunkering, pipeline vandalism, and the systemic gaps in the regulation and surveillance of the nation’s petroleum resources.
According to him, the public hearing was a pivotal step in addressing one of the most pressing challenges facing the nation.
‘’Nigeria loses billions of dollars annually to crude oil theft. This is severely undermining our economy, weakening the Naira and depriving the nation of vital revenue needed for infrastructure, healthcare, education, and social development.
‘’The scale of this theft is staggering, with reports indicating losses of over 200,000 barrels per day more than some OPEC member nations produce.
‘’This criminal enterprise fuels corruption, funds illegal activities and devastates our environment through spills and pollution.
‘’The public hearing was not just another talk shop; it was a decisive platform to uncover the root causes of crude oil theft, bunkering and pipeline vandalism.
‘’It was a platform to evaluate the effectiveness of existing surveillance, monitoring, and enforcement mechanisms; Identify regulatory and legislative gaps that enable these crimes to thrive.
‘’It was also to engage stakeholders, security agencies, host communities, oil companies, regulators, and experts to proffer actionable solutions; and strengthen legal frameworks to ensure stricter penalties and more efficient prosecution of offenders”, he said.
Nwoko noted that Nigeria’s survival depended
Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has called on Nigerian companies to position themselves strategically to take full advantage of the growing opportunities in upcoming offshore and shallow water oil and gas projects.
The Managing Director, SNEPCO, Ronald Adams, made the call at the 5th Nigerian Oil and Gas Opportunity Fair (NOGOF) Conference, held in Yenagoa, Bayelsa State, last Thursday.
Adams highlighted the major projects, including Bonga Southwest Aparo, Bonga North, and the Bonga Main Life Extension, as key areas where Nigerian businesses can grow their capacity and increase their involvement.
“Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigerian companies have a lot to benefit if they are prepared to take advantage of more opportunities in its offshore and shallow water oil and gas projects.
“Projects such as Bonga Southwest Aparo, Bonga North and Bonga Main Life Extension could grow Nigerian businesses and improve their expertise if they applied themselves seriously to executing higher value contracts”, Adams stated.
Adams noted that SNEPCo pioneered Nigeria’s deepwater oil exploration with the Bonga development and has since played a key role in growing local industry capacity.
He emphasized that Nigerian businesses could expand in key areas like logistics, drilling, and the construction of vital equipment such as subsea systems, mooring units, and gas processing facilities.
The SNEPCO boss explained that since production began at the Bonga field in 2005, SNEPCo has worked closely with Nigerian contractors to build systems and develop a skilled workforce capable of delivering projects safely, on time, and within budget both in Nigeria and across West Africa.
According to him, this long-term support has enabled local firms to take on key roles in managing the Bonga Floating, Production, Storage and Offloading (FPSO) vessel, which reached a major milestone by producing its one-billion barrel of oil on February 3, 2023.
The Emohua Local Government Area Administrator, Franklin Ajinwo, has pledged to improve electricity distribution in Oduoha Ogbakiri and its environs.
Ajinwo made the pledge recently while playing host in a courtesy visit to the Oduoha Ogbakiri Wezina Council of Chiefs, in his office in Rumuakunde.
He stated that arrangements are underway to enhance available power, reduce frequent outages, and promote steady electricity supply.
The move, he said, was aimed at boosting small and medium-scale businesses in the area.
“The essence of power is not just to have light at night. It’s for those who can use it to enhance their businesses”, he said.
The Administrator, who commended the peaceful nature of Ogbakiri people, urged the Chiefs to continue in promoting peace and stability, saying “meaningful development can only thrive in a peaceful environment”.
He also charged the Chiefs to protect existing infrastructure while promising to address the challenges faced by the community.
Earlier, the Oduoha Ogbakiri Wezina Council of Chiefs, led by HRH Eze Goodluck Mekwa Eleni Ekenta XV, expressed gratitude to the Administrator over his appointment and pledged their support to his administration.
The chiefs highlighted challenges facing the community to include incessant power outage, need for new transformers, and the completion of Community Secondary School, Oduoha.
The visit underscored the community’s expectations from the LGA administration.
With Ajinwo’s assurance of enhancing electricity distribution and promoting development, the people of Oduoha Ogbakiri said they look forward to a brighter future.
By: King Onunwor