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Oil Theft Costs Nigeria 100,000 Barrels Daily — Report

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A report has revealed that oil theft has replaced activities of militants, with Nigeria losing 100,000 barrels daily, running into trillions of naira.
The report by Bloomberg showed that between 2014 and 2019, millions of barrels of crude oil have been lost to theft, with as high as 100,000 barrels stolen daily in the last few months.
Royal Dutch Shell Plc said in a report last month that saboteurs including thieves, caused an 80% increase in the number of oil spills in 2018. These come against the backdrop of relative cessation of hostilities by Niger Delta militants, and the industry has not recorded any militant-related halts to operations since 2016.
On one level, the report noted, theft is probably a more palatable option for Nigeria and the companies operating there than attacks by militants.
About 100,000 barrels a day are being taken out of pipelines, whereas militancy halted at least eight times that amount at one stage three years ago.
Shell rules out force majeure on oil export after Nembe fire(Opens in a new browser tab) The increase reflects a belief among local communities that multinationals don’t really own the oil resources in the first place, according to Ledum Mitee, a lawyer and minority rights activist. Commenting on the trend, Mitee told Bloomberg that oil thieves know they can make money instead of just sabotaging pipelines for political reasons.
“They believe the oil is theirs and the government is the thief. “People now realize that instead of just cutting pipelines to spite the government, they can make money out of it,” he said.
According to sources in the oil region, much of the stolen crude is processed in tiny, makeshift refineries comprising hundreds of cauldrons, each of which can hold as much as 150 barrels of oil. Many companies have been affected, leading to several force majeures, the Shell report noted.
Aiteo Group, operator of the Nembe Creek Trunk Line to Shell’s Bonny export terminal, has been one of the hardest hit this year, halting flows through the link at least three times since January.
Shell lost an average of 11,000 barrels a day to theft in 2018, it said. That’s up from losses of 9,000 barrels of crude a day in 2017.
Chevron Corp. has also reported problems with third-party interference on its production facilities. Cheta Nwanze, Head of research at SBM Intelligence, said: “Oil theft is a severe drain on Nigeria’s revenue.
The losses to theft could easily fund Nigeria’s budget deficit.” Speaking at a strategic review meeting last month, Nuhu Ribadu, Chairman of Petroleum Revenue Special Task Force said the federal government loses as much as $25 million (N7.7 billion) daily and $9 billion

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Oil & Energy

Motorists Want NNPC Mega Filling Station In Bori

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Motorists plying the Ogoni axis in Rivers State have urged the Nigeria National Petroleum Corporation, (NNPC) and the Department of Petroleum Resources, (DPR) to make real their promise of establishing at least one of the mega filling stations in Bori, headquarters of Khana Local Government Area to give the people access to the facility.
Some of the motorists and residents of Bori who spoke with The Tide said the absence of the NNPC filling station in Bori has made them to continue to suffer exploitation in the hands of private filling station owners who inflates their prices at will.
A commercial motorist,  Mr Paul Ndeemua  who spoke with our reporters said motorists plying the Bori route were excited when they heared of plans by government  to build a mega filling station in Bori, but they were surprised that there was no trace of the project in Bori long after the plan was made public through the media chat.
He said:  “ We commercial motorists operating within the Bori axis were happy when we learnt sometime ago that the government was going to build mega filling station in Bori like other parts of the state were they are located, but it’s unfortunate that almost three years after the plan was announced, nothing has happened. I want to use this opportunity to call on the NNPC and the DPR to fulfill their promise by building the filling station in Bori. The project will go a long way to help commercial motorists in the area, especially in terms of access to products.”
Another commercial motorist, Mr Akanimo Udosen who spoke with The Tide also decried the conspicuous absence of the NNPC  Mega Filling Station in Bori despite its location in other places.
Resident of Bori also called on the Government to build a mega filling station in Bori to serve the people of the area. Apart from assess to petroleum products, the student said the project will also give a face lift to Bori.
He called on the Rivers State Government and stakeholders in ogoni to address the rising challenges of insecurity in Khana LGA to attract investment in the area.

 

Taneh Beemene

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Oil & Energy

PPPRA To Audit Infrastructure In Downstream Oil Sector

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The Petroleum Products Pricing Regulatory Agency (PPPRA) says it will commence a comprehensive audit and survey of downstream oil and gas logistic facilities in the country.
Mr Abdulkadir Saidu, PPPRA executive secretary, disclosed this in a statement issued in Abuja last Saturday.
He said that the state of infrastructure in the downstream of the Nigerian oil and gas sector largely was a reflection of profitability and proficiency of the market.
He added that the aim of the audit was to assess the state, adequacy and identify the infrastructure gap in the sector.
“ The PPPRA recognises that the state of infrastructure in the downstream requires constant assessment to ensure uninterrupted supply of products in addition to providing up to date data for operation in the sector.
“Oil and gas processing, storage and distribution facilities, jetties downstream and pipelines, retail outlets for oil and Liquified Petroleum Gas (LPG)  will be the focus of the survey.
“ The audit also aimed at assessing the impact of government policy and regulation on the sector’s operating environment and viability, with a view to addressing identified loopholes,” he said
According to him, the exercise, which is expected to commence in the second half of 2019, is a long awaited exercise by operators and other stakeholders.
He noted that the outcome of the exercise would contribute to policy formulation and impact investment decision-making by investors.
Saidu said that the management of the PPPRA would champion the exercise, noting that it was in furtherance of the reform programme of Mr President in the oil sector.
“All oil and gas depot owners, marketers, retail outlets and LPG plant owners are stakeholders in this exercise.
“The ultimate objective of which is to enhance the commercial viability of the sector and improve its level of attractiveness as investment capital destination of choice for would-be investors.
“We therefore wish to solicit the cooperation and support of all stakeholders in ensuring its success,” he said.

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NNPC, NOSDRA Move To Check Oil Spills

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The Nigerian National Petroleum Corporation (NNPC) and the National Oil Spill Detection and Response Agency (NOSDRA) say they would partner to check the incidences of oil spill across the country.
Group Managing Director of the NNPC, Malam Mele Kyari made this known when he received the Director-General of NOSDRA, Mr Idris Musa at the NNPC Towers in Abuja on Wednesday.
In a statement signed by Mr Ndu Ughamadu, the spokesman for the corporation, Kyari said that as a national oil company, the NNPC pipelines, flow stations and assets across the country were jointly owned by the federation.
He maintained that the corporation produces crude oil to maintain a balance sheet for the nation.
“We have taken a number of steps to stem oil spill by deploying technology in order to make sure that whenever there is an oil spill incidence, it is contained almost immediately.
“We contain the incidences of oil theft, pipeline vandalism and acts of saboteurs and we intend to bring it to the barest minimum,” he said.
Kyari noted that the NNPC operated both crude oil and petroleum products pipelines, adding that the corporation was collaborating with its partners to curb incidences of oil spill in its areas of operations.
He said the corporation would also forge closer ties with NOSDRA to proactively forestall oil spill in areas that were prone to incessant incidences.
Earlier, Musa said the agency was prepared to partner the NNPC in mitigating oil spill in all areas of its operations.
He added that the partnership would ensure a good operating environment for the operators and the communities.
He added that breaking of petroleum products pipelines did not provide food, water and good environment for the people.

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