The security agreement which the Nigerian National Petroleum Company (NNPC) Limited entered with Tantita Security Services Limited seems to be yielding positive results as the country has started experiencing an increase in crude oil sales at the international market.
This disclosure was made when the Deputy Majority Leader, House of Representatives, Hon. Peter Akpatason, commended the NNPC Limited and non-state actors for ensuring the security of oil facilities in oil-producing states. He stated this in Abuja after leading a delegation alongside the Chairman of the House Committee on Petroleum Resources (Upstream), Mr Sariki Arda, on an oversight function to riverine areas of Delta State.
Akpatason said the security of oil facilities in the region had increased the volume of crude oil production. He commended the Federal Government, the Navy, and Tantita Security Service Nigeria Limited for its success and urged the government to look into offshore oil theft. He attributed the successes recorded in the crude oil production a result of the signing of the pipeline surveillance contract with Tantita Security Service, owned by Government Tompolo.
On August 13, this year, NNPC signed a contract with Tantita Security Service for pipeline monitoring services. Before the contract was awarded, NNPC Limited’s Group Chief Executive, Mele Kyari, and the Minister of State for Petroleum, Timipre Sylva, had warned that more than 700,000 barrels of Nigerian oil were being stolen each day.
About 90 per cent of Nigeria’s foreign exchange comes from crude oil sales, which have been thwarted by oil thieves. The knock-on effect of this crude oil theft is that foreign exchange reserves are under considerable pressure, and the shortage of U.S. dollars causes the Naira to depreciate. Security contracts have become a priority because Nigeria also relies on crude oil and gas revenues to fund much of the Federal Government’s budget.
Cumulatively, Nigeria’s national oil production has recovered to an average of more than 1.47 million barrels per day in November from an all-time low of 1.1 million barrels per day before the contract was signed in August 2022, according to documents released by the NNPC. This translates to an increase of over 300,000 BPD.
Likewise, the findings further suggest that oil production continues to improve significantly as more and more wells and associated surface facilities, hitherto shut down by ongoing theft and vandalism, reopen. Specifically, narrowing down on the Joint Venture assets, mainly onshore which were mostly affected by the security challenges, the NNPC had witnessed a slump in production from a monthly average of 800,00 BPD in January 2022 to about 500,000 BPD in August 2022.
But after the mobilisation of production sharing contracts, the country’s average joint venture oil production in August – November 2022 period increased by about 190,000 barrels per day. A breakdown of the joint venture’s increase showed as of August, oil production averaged 502,759 barrels per day, which is the lowest this year.
According to the document, production rose to 521,834 BPD in September this year following the signing of the safety contract on August 13, before rising further to an average of 590,431 BPD and 668,147 BPD in October and November. The findings further suggest that gas production has been similarly impacted since the pact was signed. Specifically, before the agreement, disruptions to major arterial lines severely affected gas production and evacuations, depriving gas-fired power plants and industrial feedstock operations.
However, over the past four months, NNPC Limited has recovered an average of approximately 500 million standard cubic feet per day of gas production. This added over 230 MMSCFD to export via Nigeria Liquefied Natural Gas Limited (NLNG), and an additional volume of about 205 MMSCFD for power generation and other domestic uses.
It is for these reasons that we lend our voice to the commendation from the Representatives because the country has indeed seen a significant increase in its capacity to produce hydrocarbons, which is our main foreign exchange earner. Consequently, all stakeholders in the oil and gas industry should cooperate with the government to end crude theft and pipeline sabotage.
Security personnel must apprehend and prosecute criminals involved in the despicable act. All collaborators in the NNPC, whether regulators, supervisors, or managers, should be arrested and prosecuted, as they have shown themselves to be enemies of the nation. Sadly, there are reports accusing some international oil companies (IOCs) and national oil companies (NOCs) of economic sabotage in the Niger Delta. That is why security agencies must reinforce their efforts to break off the ill. The involvement of private security is imperative.
The Niger Delta communities and their leaders should spare no efforts to combat oil theft in the region. Bunkering, sabotage of pipelines and illegal refineries are criminal acts that not only threaten Nigeria’s economic security but also damage the environment and aquatic life. This fight requires a joint effort. Therefore, youth in the region must work hand-in-hand with the Joint Task Force (JTF), giving them the support they need to neutralise the threat.
As we applaud the efforts of various security agencies working alongside existing private security arrangements, there is good reason to maintain a constant crackdown on these criminals. Affected government representatives, including security operatives involved in the ongoing war against oil thieves in the Niger Delta, should be aware that this war will not end with the mere publication of photos in the national dailies. The Federal Government must make inclusive policies, exercise stronger political will, and provide security personnel with the proper guidance to end the hazard.