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Oil Pollution: ‘IOCs Not Practising Remediation In N’ Delta’

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“We travel together as passengers on a little spaceship, dependent on its vulnerable reserves of air and soil, all committed for our safety to its security and peace, preserved from annihilation only by care, the work and the life we give our fragile craft”.

When Adlai
Stevenson made the above remarks shortly before his death, he was drawing attention to the need for global environmental protection.
Unfortunately, environmental pollution has today remained one of the most contentious issues of global concern.
Contrary to Stevenson’s postulation, the story of the Niger Delta region in Nigeria seems to be one of the most ominous globally in terms of environmental pollution and gas flaring. In spite of its huge natural deposit of oil reserves, the Niger Delta is predominantly associated with a diminishing and blighted environment, with its teeming natives and inhabitants, displaced of sustainable livelihood.
The ugly trend has continued to draw the attention of stakeholders and pundits, with a view to addressing the development challenges in the oil rich region.
Engr Olu Anda Wai-Ogosu is one of such concerned patriots and key stakeholders who have lent his views on how to address the issues of oil pollution and environmental devastation in the Niger Delta.
The environmentalist and lecturer in the Institute of Geo Sciences, at the Rivers State University, spoke with The Tide in an exclusive interview in Port Harcourt at the weekend, and indentified some tactical flaws in Nigeria oil politics as being responsible for infrastructural deficit in the Niger Delta region.
He picked holes in the Joint Venture Operation, between the Federal Government and the International Oil Companies (IOCs)and said that the effrontery demonstrated by IOCs in slighting oil bearing and host communities, had the tacit connivance of the Federal Government.
He noted that the IOCs, were not operating in the country on their own volition, but at the instance of the Federal Government who was supposed to protect the interest of the host communities. “The actions of the IOCs are supposed to be subjected to international scrutiny of best practices, but they operate on double standards, and hide under the cover of the Federal Government. The joint venture is an international agreement, and in Nigeria, the Federal Government controls 60 percent while the IOCs control 40 percent.
“The stake of the oil bearing or host communities is subsumed under the agreement, but the Federal Government mostly fails to comply in due terms and depends on bail out by the IOCs. The Federal government, therefore, lacks the moral justifications to whip the IOCs to line in the process of institutional default,” he said.
Commenting on the controversial Petroleum Industry Bill (PIB), the environmentalist, said the bill had suffered some defects as a result of vested interests and the intrigues of oil politics which is skewed to the detriment of the oil bearing communities. “The PIB, which was expected to address the burning issues in Nigeria oil sector has also met a brick wall. There are emphasies on financial benefits to the Federal Government and the IOCs, while the stakes of the host communities are not given due consideration. These communities have suffered the brunts of environmental pollution and they want assurance of sustainable livelihood. We are not sincere about the way we handle the environment,” he said. Wai-Ogosu who is the immediate past president of the Nigeria Environmental Society, also barred his mind on remediation activities by IOCs at polluted sites in the Niger Delta.
He pointed out that the IOCs were not practicing remediation in the Niger Delta, but adopted temporary palliatives to contain the spread of pollution.
“What the IOCs do is not remediation, they only try to cut the spread of the spills by scooping the top soil from where the spill has covered and deceive the larger public that they have remediated.
“Remediation is when you apply reasonable scientific and biological methods to ensure the depth of the spread of the hydrocarbon material is adequately removed from the soil,” he explained .
Explaining the effects of oil spillage on the natural environment, he said the effects depended on the size of the spill, the terrain and the natural resources. He explained further that oil spills extended to 200 kilometres away from where it took place, and in severe cases, its devastation can last for over 50 years, as was the case of Ebubu in Eleme Local Government Area of Rivers State.
The university don also attributed lack of active participation of the Niger Delta region in the oil and gas sector to the “self discriminatory politics” played by the Niger Delta leaders which robbed them of their pride of place and justifiable entitlements in Niger oil politics.
“The oil and gas industry in Nigeria started in the Niger Delta in the late 50s when oil was struck on commercial quantity at Oloibiri in present day Bayelsa State and later in Ogoni, but the region was not able to play key role in the sector because the leaders were not futuristic in their thinking.
“Self discrimination and the minority mentality affected their political alignment. The region was factionalised and operated in splinters; this is responsible for the total disconnect between capacity development and exploitation of resources in the region,” he said.
He noted that in the early 50s, the Ogoni area had become very vibrant in oil wealth but Ogonis were not involved in the acquisition of land for the Shell Petroleum Development Company (SPDC).
He decried the fact that, “No purposeful attempt have been made in Ogoni and the entire Niger Delta to improve on capacity in both upstream and downstream sector of the oil and gas economy”.
The academic who teaches for free at the Rivers State University as his contribution to the development of the state, regretted that the few Niger Delta indigenes that owned oil blocks had it on political affiliation. He called for the liberalisation of oil blocks allocation to favour the oil bearing and host communities. “The minority mentality is still hunting the Niger Delta, we still do not realise that we need to position ourselves to take legitimate advantage of the oil resources at our domain; we have allowed the dominance of the Federal Government to over shadow us.
“We should be patriotic and stop fighting ourselves, our political leaders should know the limit between patriotic will and political will. Our representatives in the state and the National Assembly (NASS) should rise above self will and exert a high sense of service and social responsibility,” he stated.
Like Theodore Roosevelt, who was one of the earliest conservationist, Wai-Ogosu recognises the right to develop and use our natural resources, but detests the wastages and indiscriminate burning of the natural reserve which according to him, is the very foundation of life.

 

Taneh Beemene

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No Subsidy In Oil, Gas Sector — NMDPRA

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The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has said there are no subsidies in the oil and gas sector as Nigeria operates a completely deregulated market.
The Director, Public Affairs Department, NMDPRA, George Ene-Italy, made this known in an interview with newsmen, in Abuja, at the Weekend.
Reacting to the recent reports that the Federal Government has removed subsidies or increased the price of Compressed Natural Gas (CBG), Ene-Italy said, “What we have is a baseline price for our gas resources, including CNG as dictated by the Petroleum Industry Act”.
He insisted that as long as the prevailing CNG market price conforms to the baseline, then the pricing is legitimate.
 Furthermore, the Presidential –  Compressed Natural Gas Initiative (P-CNGI) had said that no directive or policy had been issued by the Federal Government to alter CNG pump prices.
The P-CNGI boss, Michael Oluwagbemi, emphasised that the recent pump price adjustments announced by certain operators were purely private-sector decisions and not the outcome of any government directive or policy.
For absolute clarity, it said that while pricing matters fell under the purview of the appropriate regulatory agencies, no directive or policy had been issued by the Federal Government to alter CNG pump prices.
The P-CNGI said its mandate, as directed by President Bola Tinubu, was to catalyse the development of the CNG mobility market and ensure the adoption of a cheaper, cleaner, and more sustainable alternative fuel and diesel nationwide.
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‘Nigeria’s GDP’ll Hit $357bn, If Power Supply Gets To 8,000MW’

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The Managing Director, Financial Derivatives Company Limited (FDC),  Bismarck Rewane, has said that Nigeria’s Gross Domestic Product (GDP) could rise to $357b  if electricity supply would increase from the present 4.500MW to 8,000MW.
Rewane also noted that Nigeria has spent not less than $30 billion in the power sector in 26 years only to increase the country’s power generation by mere 500MW, from 4,500 MW in 1999 to 5,000MW in 2025 though the sector has installed capacity to generate 13,000 MW.
In his presentation at the Lagos Business School (LBS) Executive Breakfast Session, titled “Nigeria Bailout or Lights Out: The Power Sector in a Free Fall”, Rewane insisted that the way out for the power sector that has N4.3 trillion indebtedness to banks would be either a bailout or lights out for Nigeria with its attendant consequences.
He said, “According to the World Bank, a 1.0 per cent increase in electricity consumption is associated with a 0.5 to 0.6 per cent rise in GDP.
“If power supply rises to 8000MW, from current 4500MW, the bailout shifts money from government into investment, raising consumption and productivity. And, due to multiplier effects, GDP could rise to $357 billion.”
The FDC’s Chief Executive said “in the last 30 years, Nigeria has invested not less than $30 billon to solve an intractable power supply problem.
“The initiatives, which started in 1999 when the power generated from the grid was as low as 4,500MW, have proved to be a failure at best.
“Twenty-six years later, and after five presidential administrations, the country is still generating 5,000MW. Nigeria is ranked as being in the lowest percentile of electricity per capita in the world.
“The way out is a bailout, or it is lights out for Nigeria”, he warned.
He traced the origin of the huge debts of the power sector to its privatisation under President Goodluck Jonathan’s administration, when many of the investors thought they had hit a jackpot, only to find out to their consternation that they had bought a poisoned chalice.
Rewane, who defined a bailout as “injection of money into a business or institution that would otherwise face an imminent collapse”, noted that the bailout may be injected as loans, subsidies, guarantees or equity for the purpose of stabilising markets, protect jobs and restore confidence.
He said, “The President has promised to consider a financial bailout for the Gencos and Discos. With a total indebtedness of N4.3 trillion to the banking system, the debt has shackled growth in the sector.”
Rewane warned that without implementing the bailouts for the power sector, the GENCOs and DISCOs would shut down at the risk of nationwide blackout.
Rewane, however, noted that implementing a bailout for the power sector could have a positive effect on the country’s economy if Nigeria’s actual power generation could rise from today’s 4,500 MW to around 8,000 and 10,000 MW.
The immediate gains, according to him, would include improved power generation and distribution capacity, more reliable electricity supply to homes and businesses as well as cost reflective tariffs.
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NEITI Blames Oil, Gas Sector Theft On Mass Layoff 

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The Nigeria Extractive Industries Transparency Initiative (NEITI) has blamed the increasing crude oil theft across the nation on the persistent layoff of skilled workers in the oil and gas sector.
The Executive Secretary, NEITI, Orji Ogbonnaya Orji, stated this during an interview with newsmen in Abuja.
Orji said from investigations, many of the retrenched workers, who possess rare technical skills in pipeline management and welding, often turn to illicit networks that steal crude from pipelines and offshore facilities.
In his words, “You can’t steal oil without skill. The pipelines are sometimes deep underwater. Nigerians trained in welding and pipeline management get laid off, and when they are jobless, they become available to those who want to steal crude”.
He explained that oil theft requires extraordinary expertise and is not the work of “ordinary people in the creeks”, stressing that most of those involved were once trained by the same industry they now undermine.
According to him, many retrenched workers have formed consortia and offer their services to oil thieves, further complicating efforts to secure production facilities.
“This is why we told the Nigerian Content Development and Monitoring Board (NCDMB) to take this seriously. The laying off of skilled labour in oil and gas must stop”, he added.
While noting that oil theft has reduced in recent times due to tighter security coordination, Orji warned, however, that the failure to address its root causes, including unemployment among technically trained oil workers would continue to expose the country to losses.
According to him, between 2021 and 2023, Nigeria lost 687.65 million barrels of crude to theft, according to NEITI’s latest report. Orji said though theft dropped by 73 per cent in 2023, with 7.6 million barrels stolen compared to 36.6 million barrels in 2022, the figure still translates to billions of dollars in lost revenues.
Orji emphasised that beyond revenue, crude oil theft also undermines national security, as proceeds are used to finance terrorism and money laundering.
“It’s more expensive to keep losing crude than to build the kind of monitoring infrastructure Saudi Arabia has. Nigeria has what it takes to do the same”, he stated.
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