With the introduction of amnesty, training and capacity building of youths in the niger delta, expectations were high that the development would culminate in increased peace and end to vandalism, oil theft and illegal refining in the region. The online news media leadership news paper reports that nigeria oil and gas stakeholders proffer solution to curb oil theft, while nigeria continue to look for solutions towards stemming the huge revenue loss due to pipeline vandalisation, experts spoke on the topic exploring solutions to asset security challenges faced by the nigerian oil. Jun 05, 2018 oil spills due to crude oil theft and sabotage of facilities, as well as illegal refining cause the most environmental damage from oil and gas operations in the niger delta. Nigeria oil and gas professionals solution to curb oil theft.
Jun 27, 2003 shell nigeria officials claim the technology can be used to determine the source of crude oil whenever a ship suspected of carrying crude is apprehended. The unveiling of new technology tools recently to track crude production and shipment represents a practical step to end leakages and the industrial scale theft of nigeria s crude oil and gas. Today, black is the new gold, especially in nigeria. Blood oil in the niger delta united states institute of peace. Nigeria is the largest oil and gas producer in africa.
I have written about oil theft in a previous blog post on nigeria. Nigeria are most frequently associated with crude oil theft, but. The unep environmental assessment of ogoniland shell nigeria. Throughout the 1970s, the government progressively increased its participation in the equity of all oil international oil companies operations in nigeria until it reached 60 per cent in 1978. Both companies and governments take advantage of this resource wealth. Panic as oil theft, illegal refining increase in niger. Oil theft in nigeria is facilitated by the pragmatic cooperation between security forces, militia organizations, the local population, and oil company employees who use a variety of methods to steal oil from the multinational oil corporations that are stationed within the. The upsurge of oil theft and illegal bunkering in the. Nigeria has negotiated peace with militants who were wreaking havoc on oil infrastructure, but one problem remains. He further added that, the nnpc recorded a loss of over 650,000 metric tonnes of oil to theft, through pipeline vandalism in 2005 alone. A look at the steps that nigeria is taking to battle the theft of its national oil. Global modalities, trends, and remedies 4 atlantic council this is the most extensive and indepth study ever conducted concerning the global theft of refined oil products. Political economic analysis of oil theft in nigeria. That from 1,121 cases in 2000, it increased two folds to 2,258 in 2005.
Over 40 percent of the countrys oil production 980,000 bbld of crude oil, and slightly over 1 million bbld of total oil and products is exported to the united states making nigeria the 4th largest foreign oil supplier to the united states in 2010. This identification, they argue, eventually will discourage the theft and resale of crude oil on the international market. Firstly, the diversities of crude oil theft and the difficulties of oil antitheft are. How crude oil is stolen, refined, sold in niger delta. Nigeria is an important oil supplier to the united states. When theyre done, the pipeline spews oil for miles around.
Communities or criminals, a new report, goes deep to unearth the working of oil theft and illegal oil refining in nigerias oil rich niger delta. For the last nine years, the united states has imported between 911 percent of its crude oil from nigeria. John sowawi, pumps water into the distilling equipment that is used to refine the stolen crude oil. The stealing and smuggling of crude has become very extensive and large scale since the late 1990s. As crude oil is one of the main sources for world such, the oil extracted from the niger delta energy supply wu and chen, 2019. The nigeria natural resource charter nnrc commissioned a report on crude oil theft in nigeria that provides an updated assessment of oil theft in nigeria and the consequential revenue losses over the last few years. Niger delta, where she has worked with nigerian governments. Abstract this paper examines the nexus between oil pipeline vandalism and national security in nigeria. The combination of crude oil theft, illegal refining and pipeline vandalism has become a major threat to nigeria in meeting its revenue projections in recent time.
Over 40 percent of the countrys oil production 980,000 bbld of crude oil, and slightly over 1 million bbld of total oil and products is exported to the united states making nigeria the 4th largest foreign oil. This has manifested in series of arrest and detention of suspected ships, crewmembers and stolen crude oil or petroleum products through ongoing operation safety value. Indeed, the incidence of oil pipeline vandalism has been on the rise in nigeria. Shell condemns crude oil theft, vandalism in niger delta. Communities or criminals, a new report, goes deep to unearth the working of oil theft and illegal oil refining in nigeria s oil rich niger delta. Drawing from the propositions of the resource curse. The federal government has been urged to adopt multifaceted approaches towards halting cases of crude oil theft, which has caused the country about n15. Letter from mutiu sunmonu when i joined shell in the late 1970s, i entered a nigerian oil and gas industry that was heavily dominated by the international oil companies iocs.
Nnrc assesses the impact of crude oil theft on nigerians. Looking back after nearly 40 years the most striking development is the emergence of independent nigerian companies across all levels of the industry. It is a profitable criminal industry that cost the. It is a fact that there has been neglect and alienation of the host communities where these pipelines traverse, and without their cooperation many of the other suggestions above may be. Many have attributed the major cause of crude oil theft to pipeline vandalism. Pdf the chathams house report on oil theft in nigeria has been the subject of.
Oil thefts and pipeline vandalization in nigeria 68 significance to the central focus of the war against transborder crimes and its character of illegal oil bunkering in nigeria. Abstract nigeria is the largest oil producing in the subsaharan africa, with 32% and 34. It called on the federal government of nigeria, the oil and gas industry and communities to begin a comprehensive cleanup of the region and take coordinated action to end to all forms of illegal oil bunkering, crude theft, and artisanal refining of stolen crude causing oil contamination in ogoniland. Nigeria cold facts of crude oil theft vanguard news. The illicit trade is blooming in nigeria, where regulations are few.
Comprehending national security in terms of sustainability development and livelihood, the paper seeks to establish the implications of oil. According to the 20 annual report of the nigerian extractive industry transparency initiative neiti, nigeria lost a total of 10. Crude oil theft, sabotage and illegal refining are the main source of pollution in the niger delta today. Tackling social norms, a game changer for gender inequalities march 9, 2020. Unboxing crude oil theft in nigeria march 16, 2020. Nigeria energy data, statistics and analysis oil, gas. The import of the foregoing is that crude oil theft is any activity relating to the theft or sabotage of crude oil, facilities. At its lowest and most unsophisticated level, local groups tap into pipelines and wellheads by inserting siphons. Sep 20, 20 a worker at a makeshift production camp in nigerias swamps processed crude oil at an illegal oil refinery site near the river nun in bayelsa. But advocacy groups in the oil and gas industry, such as the new nigeria foundation nnf. Chapter six analyses the incidents, extents and nature of oil thefts and pipeline vandalization in nigeria. According to the managing director of the shell petroleum development company, mutiu sunmonu, oil theft by. Chapter four provides a discussion on the oil pipeline industry network overview. It is indicative of the readiness of the government and people of nigeria to meet the needs and aspirations of the youth as well as seek a solution to their problems.
Oil pipeline vandalism and nigerias national security. Oil theft in nigeria is the most important story of our now. In view of these defining features of military regimes, the existence of huge oil resources in nigeria and the consequent inflow of stupendous revenues from crude oil sales evidently provided considerable incentive for the successive military regimes in the country to seek to hold on to power. As oil thieves bleed nigeria, report says, officials profit. May 26, 2017 i have written about oil theft in a previous blog post on nigeria. Crude oil theft in nigeria has been in the media for over a decade now, and while the oil price crash saw a slight decline, the root problems still remain. Add downstream fuels and other services to that, and oil is a moneymaking machine. A case for reform in nigeria executive summary nigerias national oil company, the nigerian national petroleum corporation nnpc, sells around one million barrels of oil a day, or almost half of the countrys total production. In spite of the efforts being made by security agencies, oil companies and other critical stakeholders, nigeria is still losing thousands of barrels of crude oil daily to pipeline vandalism and. How crude oil is stolen, refined, sold in niger delta by ogala emmanuel communities or criminals, a new report, goes deep to unearth the working of oil theft and illegal oil refining in nigerias oil rich niger delta. The unveiling of new technology tools recently to track crude production and shipment represents a practical step to end leakages and the industrial scale theft of nigerias crude oil and gas. Oil theft in nigeria is considered to be the illegal appropriation of crude or refined oil products from the pipelines of multinational oil companies. With the introduction of amnesty, training and capacity building of youths in the niger delta, expectations were high that the development would culminate in increased peace and end to vandalism, oil theft. According to reports available at the chatham house website.
At the moment, nigerias oil industry is producing well under capacity. It is accurate to say that the menace of crude oil theft, illegal refining, pipeline vandalism and their attendant environmental degradation are more prevalent in the niger delta region, nigeria s oil and gas hub. Crude oil from the niger delta basin comes in two types. A man named godswill collects crude oil from a small storage pit filled with oil, which is waiting to be refined at an illegal refinery site near the river nun in nigeria s oil state of bayelsa. Reports of 400,000 crude oil theft in nigeria heart aching. The intelligent crude oil antitheft system based on iot under. The delta of the niger river is located on the bight of bonny, off the guinea gulf on the atlantic ocean in nigeria. Nov 28, 2018 the nigeria natural resource charter nnrc commissioned a report on crude oil theft in nigeria that provides an updated assessment of oil theft in nigeria and the consequential revenue losses over the last few years. While crude oil theft has been the subject of countless articles, reports. The oil theft syndicates have also graduated from boats and barges to ships and large oil tankers in the high seas. Nigerias oil and gas production and niger delta militant. In 20 the nigerian government estimated crude oil theft and associated deferred production at over 300,000 barrels of oil per day bopd. A report of the nigeria natural resource charter nnrc stated that in 2016, about n3.
Speaker of the house of representatives, femi gbajabiamila has said that the report of 400,000 crude oil theft in nigeria on a daily basis was heartaching. Aug 01, 2018 a fresh report commissioned by the nigeria natural resource charter nnrc, a nongovernmental organisation showed that the estimated value of crude oil stolen from the niger delta was higher than. Oil theft in nigeria occurs at every stage of the transportation process from the drilling site to export terminals. Oil theft in nigeria is facilitated by the pragmatic cooperation between security forces, militia organizations, the local population, and oil company employees who use a variety of methods to steal oil from the multinational oil corporations. Pdf political economic analysis of oil theft in nigeria. Also, the frequent illegal tapping of pipelines is often very crude and causes frequent. Despite the enormity of the social, economical, ecological, political, developmental, environmental and human problems associated with and posed by oil theft.
The stolen crude oil is then refined in local artisan. Nigeria lost at least 100,000 barrels of oil per day, around 5% of total output, in the first quarter of 20 to theft from its onshore and swamp operations alone. Crude oil theft, locally known as bunkering became a phenomenon during the years of militancy against the oil industry in the early 2000s. The need of oil resource to stop oil reliance for sustainable development. The business of oil theft and illegal oil refining in the niger delta region has become so brazen and networked, involving.
This report explores the international dimensions of nigerian crude oil theft. Crude oil theft, threat to nigerias economy report. Nigeria s oil rich niger delta region is losing its battle against organised oil theft. Nigerian crude oil is being stolen on an industrial scale. Sunmonu reckons that as at 2003, crude oil theft stood at some 100,000 barrels per day. Causes and effects of pipeline vandalism in nigeria. Thieves hack into or blow up pipelines to steal the crude oil, then sell it on international markets or refine it locally.
Finally, the collaboration of the host communities to check crude oil theft from the pipelines is imperative. In addition, the provision of up to date pipeline surveillance technology and equipment for the jtf will further improve the policing of pipelines and could ultimately lead to the end of pipeline vandalism in the country. International options to combat the export of stolen oil, september 20. There is speculation that the oil trade helps fund other transnational criminal networks creating vital links between oil thieves, pirates and drug and arms traffickers.
Nigeria produces mostly light, sweet low sulfur crude oil. Mar 27, 2015 the online news media leadership news paper reports that nigeria oil and gas stakeholders proffer solution to curb oil theft, while nigeria continue to look for solutions towards stemming the huge revenue loss due to pipeline vandalisation, experts spoke on the topic exploring solutions to asset security challenges faced by the nigerian oil. The trade also supports other transnational organized crime in the gulf of guinea. The combination of crude oil theft, illegal refining and pipeline vandalism has become a major threat to nigeria in meeting its revenue. Panic as oil theft, illegal refining increase in niger delta. Although crude oil theft has long been the subject of intense media attention in nigeria, the downstream theft of hydrocarbons has remained under the radar. Impact of illegal oil business and nigeria economy. It is africas largest oil producer and the th largest in the world. Tricks of the trade oil theft in nigeria occurs at every stage of the transportation process from the drilling site to export terminals. January 1, 2007, the nigeria estimated crude oil and natural gas reserves are 36. How nigeria loses billions to crude oil theft, pipeline. Despite this, downstream hydrocarbon theft is big business in nigeria, africas largest oil producer. It occupies a land area of about 112,110 square kilometers, and also very densely populated, with over 28 million people as of 2006.
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