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Oil Theft: Avuru Seeks National Emergency On Oil Sector
Former chief executive officer of Seplat Energy Plc, Austin Avuru, has said that 80percent of Nigeria’s oil production was lost to oil theft.
This is coming amid an assertion by the Chairman of the United Bank for Africa (UBA) Plc, Tony Elumelu, that Nigeria was “losing over 95percent of oil production to thieves”.
Avuru, in a report titled, “Reining in the Collapse of the Nigerian Oil Industry” published by the Africa Oil+Gas Report, called for a state of emergency in the Nigerian oil and gas sector.
He urged regulators and the Nigerian National Petroleum Company (NNPC) to set up a “war room” strategy to develop a plan to return the oil sector to “full bloom.
“With eyes fixed on divestments and exit, the IOCs have not made any meaningful investments in the last 15 years,” he said.
“The result has not just been declining production. Much worse, the entire export pipeline network has been surrendered to vandals and illegal bunkerers. Thus, the phrase “crude theft” which crept into the industry about 2010 has taken on a new meaning.
“There are some pipeline systems now (particularly in the East), where 80percent of production injected therein does not make it to the terminal!”
According to him, almost every producer is now cooking up “alternative evacuation” schemes that cost four to five times what pipeline export would normally cost!
“The stark reality today is that the IOCs are leaving. Their decision to leave is outside our control as a nation. In fact, over the last 12 years, Shell and Chevron have divested from a total of 21 blocks. It is now public knowledge that Shell and ExxonMobil are now exiting the onshore/shallow water altogether,” he said.
“In fact, my projection is that, by Christmas day of 2025, Total would be the only IOC in JV with NNPC.
“The situation is the same with domestic gas delivery. Even though we are weaving all the right slogans about the future of gas in Nigeria, in the past five years, I can only point at a couple of Nigerian independents who are investing in gas development and processing for the domestic market.
“The state of the NNPC Towers in Abuja, headquarters of the Nigerian oil industry: Just standing back and intervening by pre-emptive acquisitions cannot be a sustainable solution to the question of retreating IOCs Nigerian Petroleum Industry is a national emergency. Oil production is down to about 1.4million barrels per day and declining and this includes about 600,000BOPD from the deep-water.
“Domestic gas production has stagnated at about 1.2billion cubic feet (Bcf) per day over the past five years at a time when projected production should have been 3.5Bcf per day. The collateral impact of course, is the low level of power generation which itself has stagnated at about 4,000megawatts per day since 2015.”
Avuru added that the full impact of the current oil production level can only be imagined when oil prices return to the $60 per barrel level.
“I dare repeat that the situation has to be treated as a national emergency,” he said.
“Between the upstream regulator (the commission) and NNPC, they need to set up a ‘war room’, some form of an effective task force to develop a blueprint for returning the industry to full bloom. The responses we hear today to the myriad of problems outlined above have been ad-hoc, knee jerk and in some cases only self-serving.”
Avuru outlined some issues that must be addressed in the oil and gas sector.
“When IOCs leave a matured petroleum patch, independents, whether local or international, usually move in to inject fresh capital, run a nimble efficient operation and maximize production and reserves addition,” he added.
“A well-organised transition driven by a clear policy direction, from the retreating IOCs to a crop of efficient independents with the requisite resources will have to be implemented.
“Just standing back and intervening by pre-emptive acquisitions cannot be a sustainable solution proffered by NNPC.
“There has to be a deliberate policy-driven return to the traditional onshore/shallow water terrains. 80percent of our remaining reserves are still in this belt.
“To do this, we have to address the twin problems of reliable pipeline evacuation and community restiveness. These problems have become heightened, not because there is no solution, but because we have abandoned every attention to them in the last 15 years.
“When these two problems are tackled, plus a strict application of the ‘drill or drop’ provisions of the new PIA, huge investments in drilling and facilities revamp will flow again into this terrain.
“Finally, we have to match our gas slogans with effective, measurable, policy actions to drive investments in domestic gas supply. The current flip-flops on pricing and commercial structure of the gas business cannot stimulate investments in the sector.
“This industry will not wake up by God’s miracle. We have to wake up and design the stimulant that will revitalise it.”
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had said the country loses more than 115,000 barrels per day to oil theft and vandalism.
Oil producers in Nigeria lamented oil thieves are raking in ‘petrodollars’ while Nigeria is bedevilled by low production.
In February, Nigeria’s oil production had dropped to an average of 1.25million barrels per day (bpd) from 1.39million the previous month.
News
Horsfall’s Legacy ‘ll Inspire Generations Yet Unborn -Fubara
Rivers State Governor, Sir Siminalayi Fubara, has described the late Chief Albert Korubo Horsfall as a distinguished statesman whose contributions to national development brought honour and distinction to the Kalabari Kingdom and Rivers State.
Fubara said Horsfall’s life of service, patriotism, integrity and commitment to humanity had left an enduring legacy that would continue to inspire generations.
The governor spoke through the Secretary to the Rivers State Government, Dr Dagogo Wokoma, at the funeral service of the late elder statesman last Saturday in Buguma, Asari-Toru Local Government Area of the State.
He described Horsfall as a patriotic Nigerian whose leadership and dedication to the country’s development earned him a place in the nation’s history.
“Chief Horsfall was a distinguished statesman whose life was defined by service, patriotism, integrity and commitment to humanity.
“His contributions to our nation, particularly through his service as Director-General of the State Security Service, pioneer Director-General of the National Intelligence Agency and Chairman of OMPADEC, remain significant milestones in our national history,” Fubara said.
The governor noted that the late Horsfall’s contributions to national security, intelligence administration and the development of the Niger Delta would remain part of his enduring legacy.
“His legacy of leadership, national service and dedication to development will remain an enduring source of inspiration to generations yet unborn,” he added.
Fubara urged the bereaved family, the Kalabari people and other Nigerians to uphold the values of peace, unity and selfless service exemplified by the late elder statesman.
The funeral service attracted several dignitaries, including the Director-General of the Department of State Services (DSS), the Director-General of the National Intelligence Agency (NIA), a representative of the Bayelsa State Governor, the Managing Director of NDDC, Chairman of PENDEF and the Regent of the Kalabari Kingdom.
Also in attendance were the Rivers State Commissioner for Education, the Commissioner for Special Projects and other government officials, traditional rulers and stakeholders.
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Fubara Reaffirms Commitment To Grassroots Dev
Rivers State Governor, Sir Siminalayi Fubara, has reaffirmed his administration’s commitment to partner with local government councils that prioritize the welfare and development of people at the grassroots.
Fubara stated this last Thursday in Nkoro Town during the commissioning of the newly built Sir Siminalayi Fubara Corps Members’ Lodge, executed by Hon. James A. James, the Chairman of Opobo/Nkoro Local Government Area.
Represented by his Chief of Staff, Mr Sunny Ewule, the governor said the project goes beyond a building to represent hope, hospitality and responsible leadership.
According to him, providing decent and safe accommodation for Nationl Youth Service Corps (NYSC) members who leave their comfort zones to serve in communities is the least government can do.
“Today we are not just commissioning a building, we are commissioning hope, hospitality and responsible leadership. The Chairman of Opobo/ Nkoro LGA, Hon. James A. James has understood a very simple truth that those who come to serve us must serve with dignity,.
“Our young graduates who serves under the NYSC scheme leave the comfort of their homes and travel far to contribute to our communities, they teach our children, they work in our health centres, and they become parts of our families.
“The least we can do is give them a decent, safe and befitting place to lay their heads. What Hon. James A. James has done today is in total alignment with the vision of this administration, an administration that believes in people, that prioritises welfare and that believes development must be felt in every local government and not just in Port Harcourt” he said.
Fubara further urged the beneficiaries of the corpers lodge to make good use of the facilities of the newly built edifice and be good ambassadors of Nigeria, respect the culture and traditions of the host community while continue to serve with dedication and patriotism.
“This Corpers lodge will enhance the security and welfare of serving corps members, boost their morale and make Opobo/Nkoro and even more attractive place for posting, it is a strategic investment in human capital and in peace building,” he said.
He commended the Opobo/Nkoro Council Chairman for aligning with his administration’s vision of ensuring development is felt in all 23 local government areas of the State, and not just in Port Harcourt, adding that the lodge is a strategic investment in human capital, security and peace building.
In his goodwill message, the Rivers State NYSC Coordinator, Mr. Moses Oleghe, said the accommodation was 85 percent of Corps members’ challenges.
Oleghe thanked Governor Fubara for the recent increase in the State allowances for Corps members to N35,000 for those in 21 rural areas and N20,000 for those in Obio/Akpor and Port Harcourt City LGAs, describing the gesture as a moral booster for the corps members.
News
IGP Secures Foreign Training Offer For 5,000 Police Officers
The Inspector-General of Police, IGP Olatunji Disu, has secured an offer of specialised training for up to 5,000 Nigerian police personnel under a proposed security cooperation involving Nigeria, the United States and Italy.
The Force Public Relations Officer, CSP Ani Iniedu, disclosed this in a statement issued at the Force Headquarters, Abuja, at the weekend.
The initiative is aimed at strengthening the operational capacity of the Nigeria Police Force to tackle insurgency, terrorism, kidnapping, arms trafficking and other emerging security threats across the country.
According to the statement, the proposed training programme will focus on counter-insurgency operations, intelligence-led patrols and tactical operations, particularly in difficult rural and forested environments.
Other areas of training include critical infrastructure protection, digital and scientific forensics, cybercrime investigations, explosives detection, financial investigations, asset tracing and anti-extortion operations.
The programme is expected to extend beyond the Police Mobile Force to other specialised units, including explosive ordnance disposal and forensic teams.
As part of the engagement, Disu met with the Commander-General of the Italian Carabinieri, Lieutenant-General Salvatore Luongo, to explore areas of technical assistance, professional training and institutional cooperation.
The police chief and his delegation also visited the Carabinieri Centre of Excellence for Stability Police Units in Vicenza, Italy, where they assessed training facilities and explored opportunities to adapt specialised policing programmes to Nigeria’s security needs.
Proposals discussed during the visit included command courses for 40 senior police officers, leadership training for 100 junior commanders and the deployment of a mobile assistance team to support Police Mobile Force training schools in Gwoza, Borno State, and Ila-Orangun, Osun State.
The discussions also covered the development of a national stability policing doctrine and standard operating procedures to improve professionalism, operational coordination and civilian protection, particularly in communities recovering from conflict.
Other areas of proposed cooperation include canine operations, forensic science and mounted policing, including horse breeding and local capacity development for effective public order management.
To formalise the proposed partnership, the IGP has initiated moves towards a Memorandum of Understanding covering specialised training, technology transfer and operational procedures.
He also invited an Italian Carabinieri assessment team to Abuja to identify priority needs and develop implementation arrangements.
Disu reaffirmed the commitment of the Nigeria Police Force to international partnerships that will strengthen operational readiness, improve investigative capacity and enhance the protection of lives and property.
The statement did not, however, indicate when the proposed training programme would commence or provide a definite implementation timetable.
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