Oil & Energy
Unmasking Oil Thieves In Nigeria
More chilly revela
tions have emerged to show that not only operators of thousands of tiny illegal oil refineries dotting the Niger Delta landscape are involved in crude oil theft, but that some high authorities entrusted with the responsibility of protecting the nation’s crude are neck deep in the mega naira oil theft, after all.
On their part, those in high authority are pointing accusing fingers at some host communities, multinational oil companies including Shell Petroleum Development Company (SPDC), Staff of the Nigerian National Petroleum Corporation (NNPC), men of Joint Task Force and even some elements in the presidency.
At the recently concluded second Delta Oil and Gas stakeholders conference held in Effurum, Delta State, the Itsekiri Regional Development Council accused oil companies and military men of being involved in the illegal crude oil bunkering deals in the Niger Delta region.
Chairman of the council, Chief Ayirimi Emmanuel, alleged that host communities benefit through handouts and other forms hence would not offer information or report those involved and urged the multinationals to look inward in their quest for an answer to the menace.
He also accused the oil companies, saying the technical skills needed to carryout illegal bunkering operations were beyond the knowledge of the layman.
Emmanuel explained further that companies were insincere in reporting illegal bunkering activities by exaggerating figures involved for fraudulent reasons.
He said, “If one barrel of crude is stolen, the oil companies would say it is 10 and the balance goes into their account thereby benefiting from the crime.”
The accusation of the Itsekiri chief that the military men where also involved received the support of the Governor of Delta State, Chief Emmanuel Uduaghan, who explained that the military men have the responsibility of securing all the three entry and exit points in the state.
He wondered how the illegal crude dealers could always pass unnoticed when the military men are at their strategic checkpoints.
Governor Uduaghan argued that even him as the governor was being stopped at each of the check points when passing and wondered how vessels and boats of the illegal bunkerers pass through the checks.
The Managing Director of SPDC, Mr Mutui Sunmonu tried so hard to exonerate staff of the company from illicit crude deal, but he said he could not vouch for thousands of SPDC contract staff.
The SPDC boss who lamented at the scope of illegal bunkering activities also remarked that operators involved trained engineers instead of the layman.
What could be more perturbing was the bombshell from a former governor of Bayelsa State, Chief Diepreye Alamieyesiegha who last week accused former President Olusegun Obasanjo of shielding oil thieves during his administration.
At an interactive session between the National Conference Committee on Public Finance and Revenue and officials of the Nigerian National Petroleum Corporation (NNPC) which took place Monday in Abuja, the former Bayelsa State governor told the public how he arrested some oil thieves, but to his astonishment the former president shielded them from prosecution.
He narrated, “I had an experience. Tankers were loaded in Bayelsa. I got the information and laid ambush for them and arrested them. About 14 big tankers and they were handed over to the police.”
“They were charged to court and the judge ordered that the product should be tested. NNPC was invited, they came out as agro chemical and they were all released,” the former governor continued.
Chief Alamieyesiegha said when he confronted the ex-president and accused him of being the chief bunkerer, the ex-president, “started mentioning names. I said, oh, you are the chief bunkerer. I confirm you know them. Don’t call me again.”
The ex-Bayelsa State executive officer went further to disclose that expatriates are even more involved in the crime than Nigerians, stressing that local boys who were regularly arrested for oil theft were mere escorts with no international connections to sell stolen crude oil.
News is awash with daily arrest of many illegal oil bunkerers both offshore and onshore. Men of the JTF in collaboration with other security agencies destroy their facilities and its contents yet, the transaction remain unabated.
Experts and regulatory authorities have lamented that billions of naira worth of crude oil was being stolen thereby sabotaging the economy of the country.
This trend coupled with lack of transparency in accounting for the value of crude sales by the regulatory authorities have continued to deny Nigerians of the needed social amenities resulting in crisis in education, health sectors as well as lack of strategic infrastructure.
Apart from the economic loss, hazard caused by the illegal bunkering activities on the environment cannot be over emphasised.
The resultant oil pollution has rendered farm lands which were formerly fertile to be barren and aquatic lives wickedly destroyed. Thereby denying the local farmers their major sources of livelihood.
The question is, how would Nigeria be able to surmount the hydra-headed illegal oil bunkering phenomenon? SPDC boss, in submitting solution, called for urgent and concerted efforts that should embrace local, national, regional and international levels to address the situation.
He suggested that such action plan should also include improved intelligence gathering, stronger policing and the prosecution of suspected criminals.
The oil sector has become the most controversial in the country in the past two decades. Inclusion of the native people who feel excluded from the policies of the government and oil exploration companies should also be explored.
At least when the host communities have the sense of belonging in the sharing of oil proceeds, the could as well redouble their efforts in protecting the common good.
Another alternative which a school of thought has always put forward is that of legalizing the activities of illegal refineries.
The argument being pushed forward is that as the government owned refineries across the country, with all the experts cannot work up to acceptable capacity, leading to incessant scarcity and wholesome importation of petroleum products, the native refineries should be empowered by supplying to them, enough crude to refine for the masses.
Those in the school of thought believe that with needed training and adequate supply, their activities could become legal, monitored and of better benefits to the nation.
Some commentators have also frowned at the mass destruction of facilities and large volume of crude by the military task force.
Instead of destroying the vessels, boats, vehicles used in illegal bunkering including setting ablaze the contents, the government could as well sieze and converts them to its property to control the wastage, health, and economic hazard caused by such massive destruction in time of extreme need.
As efforts geared towards reducing the rate of economic sabotage through crude theft, involvement of the caretakers,’ especially those entrusted with protection of he nation’s economy would only dim the confidence of Nigerians in the fight.
It is most disturbing that Ex-President Obasanjo has not reacted to the public accusation of Chief Alamesiegha, especially at a time some of those in high quarters are being viewed as the hunters that should rather be the hunted for their nefarious activities.
Chris Oluoh
Oil & Energy
Navy Nabs Six Oil Thieves, Dismantles Illegal Refining Site
The Nigerian Navy Units under the auspices of Operation Delta Sanity says it has recorded significant successes against crude oil theft and illegal refining sites in the Niger Delta.
The Navy, in an updated operations, said the successes were recorded between Thursday August 29 and Monday September 2, 2024.
According to the information, on 29th August, seven large cotonou and two fibre boats operated by heavily armed oil thieves loading crude oil from an illegal loading point around Botokiri axis of Nembe Local Government Area of Bayelsa State were seized.
Also, on 31st August, six suspected crude oil thieves with 109 sacks of illegally refined petroleum products, four fibre boats and two wooden boats were arrested and seized along Ogboinbiri-Kasama-Azama-Isoni of Bayelsa State.
Again, on 1st September, two wooden boats and 328 sacks of illegally refined automated Gas Oil were seized at Otuogori community’s river bank in Yenagoa, Bayelsa State.
Additionally, on 2nd September, 35 sacks of illegally refined Automotive Gas Oil in a wooden boat were seized at Gbaraun area of Southern Ijaw Local Government Area of Bayelsa State.
These successes indicate the effectiveness of Operation Delta Sanity, and the resolve of the Nigerian Navy to sustain current efforts to rid Nigeria’s maritime environment of the menace of crude oil theft and enhance crude oil production for the overall growth of the economy.
Oil & Energy
Security Agencies, MDAs Owe Eko DISco N42bn – BPE
The Eko Electricity Distribution Company Plc. has clarified that the Ministries, Departments, and Agencies of the Federal Government, including the military, owed the power distribution company N42billion as the cost of electricity consumed and not N144billion.
The Bureau of Public Enterprise(BPE), disclosed this in a Statement signed by the Head, Public Communications, Amina Othman, at the Weekend.
According to the Statement, the Disco affirmed that its total outstanding debt was N144billion, of which the MDAs and the military owe N42billion.
“The Eko Electricity Distribution Company Plc has clarified that contrary to earlier reports, the aggregate outstanding debt owed by consumers is N144billion, out of which, ministries, departments, and agencies including the military owe N42billion”, Othman stated.
The Statement said this was against prior reports that the MDAs, including the army, police, and other government agencies, were owing N144billion and had refused to pay.
The Disco said, “the clarification became necessary for proper reportage on the matter and to put the records straight”, it stated.
Recall that during a recent oversight visit by members of the House of Representatives Committee on Privatisation and Commercialisation, led by its Chairman, Ibrahim, the Acting Managing Director of the EKEDC, Mrs. Rekhiat Momoh, among other things, informed the members about the legacy debts owed the company by MDAs.
The committee had reported the acting MD as stating that the company was owed N144billion by MDAs within its operational area, saying she mentioned that the military, police, and various state government agencies failed to settle their debts, creating financial difficulties for the distribution company.
Oil & Energy
Unveiling Of Crane: Energy Infrastructure Set To Get Boost
Energy infrastructure, a crucial part of global oil and gas supply and the energy transition, are set to get a boost after a heavy lifting equipment provider unveiled the world’s strongest crane-equipment capable of lifting 6,000 tons, or 15 fully loaded Boeing 747 aircraft.
Dutch heavy lifting and transport services company Mammoet has launched a new type of crane, the SK6,000, which, the firm said, could be used for modules to be built faster and also “bigger than ever before”.
As oil and gas continue to be a key part of the world’s energy system—and likely will continue for decades to come—and as renewable energy developers aim for bigger wind turbines, the support equipment for installing oil and gas platforms, offshore wind equipment, and even nuclear power stations is becoming bigger.
Bigger cranes such Mammoet’s SK6,000 could remove some of the limitations of engineering and construction firms. These firms are generally limited by how much weight can be lifted when installed on a platform or turbine.
Cranes that can carry 5,000 tons and more can shorten the time of a project being erected on a site, onshore or offshore, Mammoet says.
“Limitations on lifting capacity force engineers to fabricate smaller modules than would be optimal; tying up site space and increasing the complexity and duration of projects,” the company notes.
“This limitation can also narrow the execution choices available during each project’s planning stage and the percentage of each project that can be executed locally.”
These days, energy companies and their contractors seek faster deployment of energy infrastructure, be it wind turbines or floating production storage and offloading (FPSO) vessels and platforms for oil and gas production.
“There are so many supply chain constraints at the moment that need to be de-bottlenecked,” Gavin Kerr, Mammoet’s director of global services, told Bloomberg, commenting on the new crane.
“The bigger everything gets, you need bigger cranes.”
Moreover, the SK6,000 is containerised and can be assembled quickly on-site. This feature allows it to deliver heavy lift capability wherever it is needed, giving contractors greater flexibility in where and how energy projects are completed” Mammoet said.
“With the innovation of the SK6,000 crane, our customers can think bigger than ever before; pushing modules beyond the 4,000t and even 5,000t barriers. Its low ground bearing capacity also means the crane can be used all over the world”, said Mammoet’s Sales Director Giovanni Alders.
“With its long outreach, small minimum footprint and relatively small site impact, the SK6,000 greatly reduces the topside integration time.
“Needless to say, with larger building blocks you spend less time connecting and testing, and more time producing” Alders added
Energy companies do need faster permit-to-production times in both oil and gas and renewable energy to provide the conventional and green energy sources the world will need.
Wind turbine technology is evolving and making the hub height increasingly taller. According to the Office of Energy Efficiency & Renewable Energy at the U.S. Department of Energy, the hub height for utility-scale land-based wind turbines has surged by 83per cent since 1998–1999, to about 103.4 meters (339 feet) in 2023. That’s taller than the statue of Liberty.
The average hub height for offshore wind turbines in the United States is projected to grow even taller from 100 meters (330 feet) in 2016 to about 150 meters (500 feet), or about the height of the Washington Monument, in 2035, DOE said.
In the oil and gas industry, new resource development is needed as demand for LNG grows and legacy oilfields mature and output declines.
If contractors can bring energy projects on stream faster, both oil and gas supply and the energy transition will benefit.
By: Charles Kennedy
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