Opinion
Whither The Modular Refineries?
If top government officials are not sleeping well, especially those in the security arm, two issues may be responsible for their induced or forced insomnia; Boko Haram insurgence and the rising incidence of crude oil theft in the creeks of the Niger Delta which appear so far to be unstoppable.
The reason for this assertion may not be far fetched if the quantity of our oil that has been siphoned through illegal means – illegal bunkering and through illegal refineries, is anything to go by, despite attempts by the security agencies to stop this economic crime.
These illegal refineries have become so ubiquitous that the more they are destroyed the more they seem to spring up like mushrooms even as the Joint Task Force (JTF) is battling to dismantle them.
For instance, between January and December 2012 about 4349 illegal refineries were destroyed in the Niger Delta by the JTF. The Commander, Joint Task Force, (Operations Pulo Shield) Maj Gen. Jao Ochoga who disclosed this at Yenagoa during the media briefing on the JTF Operations for 2012 also said that 1945 illegal oil bunkering suspects, 1215 Cotonou boats, 187 Tanker Trucks, 178 fuel dumps, as well as 5574 surface tanks, were destroyed during the period, among other valuables like pumping machines and outboard engines.
It is however heart warming that the Commander identified social impediments in the way of eradicating this crime which cost the country so much both in terms of human and material loses and environmental pollution.
He said that community support for oil thieves, involvement of foreigners, ineptitude in the prosecution and quick dispensation of justice to offenders are some of the challenges confronting the force in the region. This foot-dragging, as it were at hitting back at these economic saboteurs is inexplicable if the fact that the country lost over N197bn to crude oil thieves in the first six months of last year, is taken into account.
This development must not be allowed to continue unchallenged, particularly now that the home based thieves have introduced the crime to their foreign friends, all with a view to robbing the federal government of much needed resources to develop the country.
As such there is need for stiff punishment for those caught in this act, particularly as most of them would hardly name their main sponsors.
This line of thought is also informed by the fact that though several lives have been lost occasioned by the use of ill-refined kerosene emanating from the illegal refineries, some unpatriotic community leaders appear to be supportive of this vice, for of obvious reasons. However, the recent move by the JTF to prosecute some oil thieves is reassuring moreso when the new Commander of the force, Maj. Gen. Bata Debiro had already launched a counter strategy with the objective of wiping out oil thieves in the Niger Delta.
In fact the JTF has already, handed 175 suspects arrested during their operations to the prosecuting agencies in the hope that justice will be meted to them. Most reassuring, however, is Maj Gen. Debiro’s identification of our countrymen’s connivance with foreigners to steal our crude, an action which he described as economic sabotage and a threat to economic security and future generation of Nigerians, and his pledge to ensure they never succeeded in their nefarious plans.
While we hope that the law takes it course on the suspected oil thieves and pipeline vandals we recall that the federal government had promised us what it called, modular refineries. In July 2012 the federal government signed a Memorandum of Understanding with a US based oil consortium to build six modular refineries in the coastal areas of the country with the capacity to produce 30 million litres of products daily.
The $4.5bn deal with Volta Petroleum Resources Ltd and its Nigerian counterpart Petroleum Refinery and Strategic Reserves Ltd. according to the Minister of Trade and Investment, Dr. Olusegun Aganga who stood in for Nigeria, two of the refineries which would refine between 30,000 and 60,000 barrels of crude per day were expected to be completed within the next 12 months. This means the two advance modular refineries are expected within the next few months.
There is no gainsaying the fact that the country needed more refineries to refine the crude available here in large quantities in order to shore-up short falls in demand of petroleum products in the country.
This explains why government should put in place necessary measures to ensure the success of the joint venture. In fact Mr. Edozie Njoku who signed the MoU for the Petroleum Refining and Strategic resources Ltd. noted that there was need for the Federal government to establish more modern refineries toward alleviating some of Nigeria’s economic problems, adding that when the refineries become functional the issue of fuel subsidy would be dropped entirely. There is no doubt that the Federal government must heed this advise to establish modern refineries, rather than spending money in Turn Around Maintenance (TAM) schemes for the old refineries that have since refused to function optimally. The etroleum industry has many problems but checkmating crude oil theft is top priority.
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