The Nigerian Extractive Industry Transparent Initiative, NEITI, yesterday, called for a review of legislation and use of sophisticated technology in the oil and gas sector to reduce vandalism of pipelines, crude oil theft and illegal refining of crude.
This was part of the recommendations presented by the Executive Secretary, NEITI, Wazir Adio, in a document called, ‘The Inaugural NEITI Policy Dialogue with the theme, ‘Stemming Oil Theft in Nigeria’.
According to Adio crude oil theft happens in three ways. First, through vandalism and sabotage- when that happens crude oil is pilled and lost. Once that happens you have to short in production, and on the account of that it leads to secondly, Differed Production and this is different from loss when you are thinking of the first instance. The third part is outright theft.
He further disclosed that between 2014 and 2016, NNPC lone spent N363 billion for repairs and maintenance and that was on the average per year and that is about $400 million, and that also impacts the environment including livelihoods.
He also said an estimated range 150,000 bpd to 400, 000 being daily production is lost every day, which according to him between January and June of 2019, 22 million barrels of oil were lost and that in monetary value is $1.35 billion and that is five per cent of the 2019 budget, which put together is higher than the total allocation for health, education, defense, and Agric.
He added that the issue has been lingering for some time and goes beyond 2019 and that the total losses for 10 years (2009-2018) are $41.94 billion, and this is just the least and there is the possibility of much than this.
He said: “The current legislation to punish culprits is outdated, which if convicted the fine ranges between N100 to N5000, even the ones with jail terms have option of fine, but there is one that carries death penalty on refined products and not on crude. Stakeholders should do more on legislations, security, surveillance, community engagements, and diplomatic outreach.
“Yes a lot has been done but the problem still remains and that means look at the approach taken so far and see whether this is enough.
“The scale of infrastructure is amazing makes it difficult for police. An active market for stolen crude oil and we have to think about how to tackle it. We have to look at the legislation. The cost of those who perpetrate the act is low and they are bent on carrying out the crime.
“We must leverage on technology and deploy it including fingerprinting, molecular markers, revamp security architecture, specialized force, and communities need to be served, and allow incentives to communities by equity, and also involve the global community and make them understand it is not a Nigerian problem, which we need to have a global coalition.
Meanwhile, the Governor of Edo State, Godwin Obaseki, who was Guest of Honour at the occasion, urged the federal government to consider leasing of pipelines and also transparent surveillance contracts.
“The federal government should reconsider leasing these lines for a short while because we understand what is going on from the current owners and working with them, put in place security arrangements and infrastructural development plan for these lines because these lines are quite old and need to be replaced. Haven take over these lines we should now have proper transparent surveillance contracts”, Obaseki said.
However, he said the issue of crude oil theft is not a problem that can be eliminated in a hurry but must be tackled, hence the task is a collective responsibility.
He also urged governors in the Niger Delta region to properly utilize the 13 per cent derivation from the federal government to develop their states and give the people a sense of belonging.
The Minister of State, Petroleum, Timipre Sylva, represented by his Special Adviser, Felix Nabena, said in a goodwill message, said that “It is in the light of the above we welcome and identify with NEITI policy dialogue on combating crude oil theft in Nigeria.
The recent NEITI study and report on crude oil theft between 2009 and 2018 reveal a whooping sum of $41.9 billion worth of crude may have been stolen in the past 10 years.
“This calls for serious concern. Consequently, we must continue to review current efforts, law, solutions and some of them contained in the NIETI report. I, therefore, charge all stakeholders to reflect over this challenge persistently before us, the NEITI report and its recommendations.
Also in a goodwill message, the Group Managing Director, Nigerian National Petroleum Corporation, NNPC, Mele Kolo Kyari, represented by the Chief Operating Officer, Upstream, Roland Ewubare, disclosed that the Corporation has bear the brunt of crude oil theft, recording between 2001 and 2019 half-year a total of 45, 347 pipeline breaks on its downstream pipeline network.
“Sadly, today crude oil theft has become a major threat and that threat actually affects our economy in terms of our ability to meet our revenue projections and scale.
“NNPC as a player on the downstream side has felt the direct brunt of many attacks on our facilities and assets. Between 2001 and 2019 half year we recorded a total of 45, 347 pipeline breaks on our downstream pipeline network. It comes with an average of seven incidents on a daily basis.
“There is also environmental degradation caused by theft and pipeline vandalism and the environmental impact witnessed in communities is directly linked with this”, Ewubare said.
Shell’s Ultra-Modern Medical Centre Donation Excites Ogun Community
The government of Ogun State and leaders of Ogijo Community in Sagamu Local Government Area of the state have described the 20-bed ultra-modern medical centre donated to the community as a model of primary health care facility worthy of replication across the state.
The Ogun State Commissioner for Health, Dr. Tomi Coker, who took delivery of the facility in a virtual ceremony last Wednesday said the donation was timely, coming at a time that the state was struggling with the dearth of facilities to manage the increasing cases infection of the novel coronavirus in the state, adding that the state government alone could not bear the burden of public healthcare delivery.
The medical centre, with doctors’ quarters, alternative power system, water treatment plant and a medical ambulance was built, equipped and furnished by the Nigerian National Petroleum Corporation and Shell Nigeria Exploration and Production Company Limited (SNEPCo) in partnership with SNEPCo’s co-venture partners.
“We’re very appreciative to NNPC and SNEPCo. This medical centre could not have come at a better time as it will go a long way in strengthening the state’s primary healthcare delivery system,” said Coker.
According to Coker, NNPC and SNEPCo had supported Ogun State for more than eight years during which the companies had trained over 200 state health workers.
“With this state-of-the-art medical centre, I am sure that the people of Ogijo would have the qualitative, affordable and accessible healthcare that the governor promised all the citizens of Ogun State.”
The traditional head of Ogijo, Oba Kazeem Gbadamosi, noted that the facility was not just a pride for Ogijo but for Ogun State.
“This is the best of its kind in Ogun State and we’re so excited to have this delivered to our community by NNPC and SNEPCo.”
Managing Director of SNEPCo, Bayo Ojulari, who handed over the facility to the state government noted that the focus of the social investment policy of the company was on health and education, and that SNEPCo would continue to strengthen its relationship with governments across Nigeria for better healthcare and education systems.
“Our health intervention programmes have been delivered in many states and our secondary school and university scholarships are continuing to grow. With the support of NNPC and our co-venture partners, we will not relent.”
General Manager of the National Petroleum Investment Management Services, an NNPC subsidiary, Bala Wunti, who was represented by NNPC’s General Manager, Services, Yahaya Yunusa, charged the state and Ogijo Community to provide effective management of the facility in a manner that will provide the required healthcare services to the people.
“Sustainability should be paramount in the management system to ensure that the facility serves the purpose for which it is meant.”
The facility was the second of its type donated by SNEPCo in recent times.
The company had recently rehabilitated and equipped the Casualty and Trauma sections of the General Hospital Odan, Marina in Lagos State with state-of-the-art medical emergency equipment, and also donated fully equipped custom-made ambulances for easy access different parts of the state.
Shell Employees Launch N82m Free Feeding Programme
Employees of Shell companies in Nigeria have launched free feeding programme in COVID-19 isolation centres in seven states under the Shell Employee Care Programme, the General Manager External Relations of Shell Nigeria, IgoWeli, said in a statement issued on Sunday.
“The programme has kicked off in Abia, Bayelsa, Delta, Imo, Lagos, Ogun and Rivers States and it is a further demonstration of care to the people following the numerous intervention programmes by Shell companies in Nigeria particularly in support of government at all levels in the fight against the spread of the novel coronavirus pandemic,” Weli said.
The feeding programme, according to Weli, was being funded from personal donations by staff and contractors of the Anglo-Dutch integrated energy giant, the total amount of which was matched by the companies to make up the N82.6million for the programme.
The programme delivery strategy involves a collaboration with the state governments, non-government organisations and certified caterers to provide freshly cooked meals daily to patients and healthcare workers at the isolation centres.
Head of Clinical Services at the Bayelsa State Isolation Centre in Yenagoa, Dr James Omietimi, who oversees the distribution of the meals said, “I eat the lunch provided and the nutritional value is good because of the variety. I can tell you it’s tasty and meals have been coming in daily.”
So far, this intervention has provided over 31,000 meals to the isolation centres with plans to scale up to 54,000.
Shell companies in Nigeria had earlier donated ambulances, testing machines and kits, medical consumables and personal protection equipment to Abia, Bayelsa, Delta, Imo, Lagos, Ogun, Oyo and Rivers states to help in the fight against the spread of the COVID-19 pandemic.
In 2012 and 2018, staff and contractors of Shell companies in Nigeria had also made personal cash donation to provide succor to victims impacted by the unprecedented flood and Internally Displaced Persons humanitarian crises in the Niger Delta, Kogi and Anambra States, and North East of Nigeria, as part of the Shell Employees Care scheme.
Shell companies in Nigeria comprise The Shell Petroleum Development Company of Nigeria Limited (SPDC); Shell Nigeria Exploration and Production Company Limited (SNEPCo); and Shell Nigeria Gas.
Social Action Condemns Police Arrest Of Fuel Hike Protesters
Social Action comprising of various non-governmental organisations has called for urgent reversal of hike in fuel price, as it condemned police arrest of fuel price hike protesters.
In a statement signed by the Communications and Advocacy Manager of Social Action, Lilian Aikhigbe, and made available to The Tide, in Port Harcourt, the body averred that the fuel price hike was ill-timed and unwarranted.
It further said, “the organization, therefore, condemns the harassment and brutalisation of several civil society actors, students and journalists who were arrested by the Nigeria Police following a series of demonstrations across the country, against the petrol price and electricity tariff increment.”
The organisation maintained that it was within the rights of Nigerian citizens to publicly express displeasure with the insensitive policies of the government which were glaringly inimical to the wellbeing of the Nigerian masses.
“Most Nigerians are yet to recover from the economic downturn occasioned by the Covid-19 pandemic. Many lost their jobs or experienced a drastic drop in personal income, owing to the pandemic”, it said.
The body insisted that the price increment was, therefore, ill-timed and highly insensitive for the government to initiate policies that could bring more suffering upon the people, no matter the reasons proffered by the government as justification for the increment.
“We, therefore, strongly demand for a reversal of this anti-people policy which has already brought untold hardship to many Nigerians. We stand in solidarity with the Nigeria Labour Congress (NLC), students’ union bodies, Civil Society Organisations and the Nigerian masses to call for the immediate reversal of the fuel price increment and electricity tariff hike.
“We also call for an immediate end to the needless harassment of patriotic citizens protesting the hike in fuel and electricity costs, as it is undemocratic for such well-meaning citizens to be arrested on account of their legitimate stance against the suppressive and draconian policies of the government. Such arrests portray the Muhammadu Buhari-led government in bad light and the Nigerian Police ought to know that the people have the right to hold the government accountable by demanding for good governance and better standards of living,” it insisted.
The body urged the Federal Government to expedite action in revamping the moribund oil refineries in the country, and establish modular refineries as well.
“After several decades of importing refined petroleum products, it is high time the oil-rich nation, popularly referred to as the ‘giant’ of Africa, began to refine as much of its crude oil as is needed to meet local demand, rather than exporting it and placing the burden of these exports on the masses who are made to pay exorbitant prices to purchase the imported, refined products”, it added.
By: Kevin Nengia
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