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Business News of Wednesday, 22 February 2023

Source: thenationonlineng.net

Fed Govt to hold authorities responsible for crude oil loss - Osinbajo

Vice President Yemi Osinbajo Vice President Yemi Osinbajo

Vice President Yemi Osinbajo yesterday said the Federal Government would hold authorities responsible for loss of crude oil.

He described the menace as an affront on the integrity of the government.

He listed various factors responsible for the theft, stressing that the government cannot continue to entertain excuses from the authorities in the management and security of the hydrocarbon resource.

He spoke in Abuja during the “Stakeholders’ Conference on Oil theft and losses in Nigeria.”

The Vice President said: “It has been attributed to non-production, metering error and many other factors. It is an affront to our sovereignty to our collective wellbeing.

“We must hold authorities responsible for what is going on. Our public and personal reputations are at stake.”

Meanwhile, the Presidential Amnesty Programme (PAP) Administrator, Major-General Barry Ndiomu (rtd) said owing to pipeline protection contract model to curb crude oil theft, its production has increased by 100 per cent.

Gen. Ndiomu, who is also the Chairman, Special Investigative Panel on Oil Theft/Losses in Nigeria, said the approach of the pipeline protection could be improved upon to achieve lasting and sustainable results.

He noted: “For example, we can draw from the already working pipeline protection contract model employed by the Nigerian National Petroleum Company Limited (NNPCL), which have had the attendant outcome of an almost 100per cent increase in oil production in the few short months since commencement.”

The NNPCL Group said oil production had risen above 1.6million barrels daily.

Its Group Chief Executive Officer, Mele Kyari, represented by the company’s Chief Upstream Investment Officer, Bala Wunti, highlighted that the rectangular approach comprising NNPC & partners, regulators, government security operators and the communities underpinned by the adoption of technology ensured the recovery of production from an all-time low of sub-one million barrels of crude oil production per day last July 2022, to the current production figure of 1.67 million barrels per day.

He added that the implementation of the 3DR strategy [Detect, Deter, Destroy, and Recover], the establishment of the Central Command and Control Centre for effective monitoring and coordination, the launching of the Whistle-Blowers Portal and the Crude Oil Validation Portal, and the deployment of some of the best-in-class surveillance tools and technology have been a game changer in the fight against crude oil theft and vandalism.

Kyari said “a key element of the collaboration has been the onboarding the Private Security Contractors from the host communities, which were hitherto isolated.

“Their in-depth knowledge of the terrain and modus operandi of the criminals have led to massive discoveries of illegal connections and interception of vessels ferrying stolen crude oil.”

The NNPCL was upbeat that with the current sustained efforts, facilities that have been shut down have reopened, and injection of crude oil into major trunklines for evacuation to the terminals is being ramped up. Nigeria’s crude oil production output is steadily growing to hit the 1.8 million barrels per day OPEC quota.

He said this production growth implies significant economic benefits for the Country and all stakeholders.

In the bid to arrest the crude oil theft menace, National Security Adviser (NSA), Maj General Babagana Monguno (rtd) disclosed that between August 2018 and January 2023, security operatives have facilitated the prosecution of over 200 vessels involved in maritime criminality with Nigeria’s Exclusive Economic Zone (EEZ) up to the Republic of Togo.

He added that 83 oil tankers involved in various crude oil and product theft have been arrested while the theft of over three million barrels of crude oil was prevented and 11 million litres of petrol and Diesel were recovered.

His words: "Let me add me quickly add that the security agencies particularly the Nigerian Navy have been embarked on series of intelligence driven maritime security operations to curb the issues of oil theft and illegal oil bunkering particularly in the Niger Delta area.

“They have also been closely supported by JTF Operation Delta Safe, NSCDC, NIMASA and EFCC amongst other agencies.

I have also directed that the Falcon Eye System – a high tech real-time intelligence Maritime Domain Awareness facility domiciled with the National Security Adviser to be fully committed to address this emerging concern.

“The facility has between August 2018 and January 2023 facilitated the prosecution of over 200 vessels involved in maritime criminality within Nigeria’s Exclusive Economic Zone (EEZ) up to the Republic of Togo”

He said technology remains a major force multiplier for any integrated solution or framework to address security concern of this nature.