How oil thieves are bleeding Nigeria dry

There is a sense in which the ongoing crude oil theft in the Niger Delta region is creating panic in the minds of both the Nigerian government and the major companies into oil exploration in the country. The proverbial cat was let out of the bag by Nigeria’s Minister of Finance Ngozi Okonjo-Iweala and the […]

There is a sense in which the ongoing crude oil theft in the Niger Delta region is creating panic in the minds of both the Nigerian government and the major companies into oil exploration in the country. The proverbial cat was let out of the bag by Nigeria’s Minister of Finance Ngozi Okonjo-Iweala and the Managing Director of the Shell Petroleum Development Company (SPDC) Mutiu Sunmonu, who implied that Nigeria risks fiscal crisis as a result of oil bunkering and pipeline vandalism.

Okonjo-Iweala reportedly said Nigeria is losing a fifth of its revenue to oil theft. Sunmonu on his part said Nigeria risks losing about N800 billion ($5billion) to oil theft this year alone.

This position was amplified yesterday by Minister of Petroleum Mrs Diezani Alison-Madueke who said at a roundtable with service chiefs and stakeholders in Lagos yesterday that Nigeria is losing an average of 180,000 barrels of crude oil per day to crude theft worth about $9 million per day and $7 billion annually, adding that is draining the resources of the country as the government has spent about $5 billion on repairs of vandalized pipelines recently.

But according to observers, what the trio of Ngozi, Diezani and Sunmonu said is not new to Nigerians. “It was an open secret that oil theft is an industry of its own in the Niger Delta, which is flourishing with the knowledge of authorities at both state and federal level,” a stakeholder told Weekly Trust in Port Harcourt. “The government is only raising the alarm now because it is affecting the money accruing to its officials,” he added.

‘Amnesty reduced bunkering’

In Bayelsa State, security agencies are worried over the new tactics being deployed by the oil thieves to siphon crude at the expense of the nation’s dwindling economic fortune. Public Relation officer of the Nigeria Security and Civil Defence Corps (NSCDC) in Bayelsa, Denny Manuel said when the federal government amnesty for militants was declared in 2009, activities of the illegal bunkering reduce drastically. “But, at the moment, it has assumed a new dimension. Oil thieves no longer thrive with local refining, they now specialize in loading vessels on the high sea to convey outside to the country of their destination.

“They have changed tactics and this is quite worrisome because it is an act of economic sabotage on the country’s major revenue. Moreso, we need a stronger security strategy to combat them on the high sea from where they now carry out their cankerworm operation,” Manuel said.

Another respondent, chief Bob Nabena, an expert in the Oil sector told Weekly Trust that any good cannot come out from where such illegal business activities thrive. “Everything associated with bunkering deprives both the federal and state governments a fruitful future.” He said that the oil producing communities are worst hit as bleak future stares at them from all angles.

Caught in the act?

According to Brigadier General Yusuf Tukur Buratai, the commander of the Joint Military Task Force (JTF) Operation Pulo Shield, saddled with the responsibility of combating oil bunkering, pipeline vandalism and other economic sabotage in the Niger Delta, said foreigners are actively involved in the stealing of Nigeria’s oil, adding that it is a threat to national security.

He said patriotic citizens from one of the communities informed the JTF of the presence of some suspected vessels which led to the arrest of culprits while siphoning crude oil worth over 350, 000 metric tons from a Shell pipeline.

“The information we got from individuals that they have seen two vessels coming in toward the direction of Awopa (in Degema local government area of Rivers State). That place is normally not a lodging point to such vessels. The Commanding Officer in Abonema quickly directed his officers on ground to go and see what was happening.

“They went there and at a particular point, they went into one of the pipelines and saw them, siphoning oil from pipeline belonging to Shell and apprehended them. On interrogation, we discovered there were 21 Ghanaians and five Nigerian accomplices,” he said, adding that this is not the first time foreigners are arrested in connection to oil theft in the Niger Delta.

He said, “The involvement of the foreigners in such illegal or criminal acts is unfortunate. But you know that these foreigners will not have a foot hole without their backers here at home. The ships, probably most have been hired by a Nigerian or probably belong to a Nigerian, but investigation will determine that.”

‘Politicians, security to blame’

But community members in the region are accusing fingers at politicians and security personnel. Some residents in the affected communities, where the oil thieves operate, say politicians and top security personnel for sponsoring and aiding activities of crude oil theft in their communities.

The residents, who spoke on condition of anonymity, called on the federal government to take urgent and drastic steps toward ending activities of oil theft in the Niger Delta.

One of these resident said, “There are criminal elements who engage in oil theft as a way of business. They have their collaborators. Often times some of them have been caught on the high sea and all that. But the important question is that what has happened to them that will serve as a deterrent to others?”

Another resident said, “Ninety percent of the bunkering happening in the Niger Delta is being done by people with a lot of backing. People who are caught are just the minis in the game. The real perpetrators are in the military and in the political circle.”

But speaking at the roundtable with the minister of petroleum, the Chief of Defence Staff Air Marshall Oluseyi Petirin said the task force is to make sure that we get to the bottom of the crude oil theft in the country. “This is not a task force parse, but a committee comprising of very senior military personnel to monitor the activities,” he said and dismissed the allegation that his men are collaborating with oil thieves to milk the nation’s resources.

The Commander of the JTF Operation Pulo Shield denied the allegation that security personnel are part of the deal saying “As far as I am concerned, these allegations are unfounded. I have not received any report on alleged connivance. It could be some kind of frame up by some individuals probably prevented from carrying out their nefarious activities. But never the less, if there is any cogent report or a specific allegation on any of our personnel; I assure you that we will deal with them squarely.”

‘How I was roped in’

Mike Edu, a Captain with about 30 years experience, was among the over 20 people arrested. He said “I found a job on the internet, on www.davidoil.com. I applied for it and got the job. They called me to come to Lagos and pick the vessels as a captain. I don’t know the David himself but a representative called Mr. Okon, a Nigerian from Bayelsa State. David himself is a Nigerian from Bayelsa State also. They told me to take the vessel to Cotonou for some repairs. After repairs, they told me to sail to Nigerian waters to load gas to Lagos terminal.

“We came to Bonny anchorage almost 18 days. On Sunday, evening around 1700 hours, David called me that I should come to  a point, I saw one speed boat, with three people, one came on boat and I asked him his name and he said his name is Soro and that is was David who directed him to come and take me to the loading position.

“I handed over the vessel to him (Soro). He took us into a channel, asking me to drop anchor in the night around 11: 00.  After dropping the anchor, I saw about three to four speed boats, which brought long hoses.

“When I dropped the anchore, I asked them, there is no loading point here, which oil you are going to give us. He said it was locally refined gas oil. I was tired and told them I needed to relax. About 30 minutes into my relaxation, the Bosun (boatswain) called me and said the thing they are giving us is not gas oil but crude oil. I used a torch light and saw that it was crude oil.

“I told them to take the hose out. They were many, as they were dragging the horse, and said it was an order from David. When they noticed the crude oil was throwing, they closed the valve. As they were dragging, saw about four or five speed boats with military men. Am 100% worried to be in the net of security men barely 17 days after picking the job, I have not picked even one dollar,” he said.

The Ghana connection

In Ghana, Weekly Trust’s findings revealed that those arrested are agents of some highly placed Ghanaians and Nigerians, who have turned crude oil theft and hijack into a very lucrative business. They masterminded the disappearance of several Nigerian oil vessels in the Gulf of Guinea.

“Most of the oil vessels that are stolen from the Gulf of Guinea are re-routed and discharged at the Tema Ports near Accra. Usually nothing is ever heard of them except when there is a disagreement between the perpetrators,” a source told our reporter in Accra.

“For instance,” he added, “the case of the vessel MV-Madina that was purportedly hijacked in March this year from Lagos and arrested by the Ghanaian Navy, at the Salt Pond Offshore producing company Limited (SPOCL) near Cape Coast, Central Region the version given to the press was not entirely true.

One of the partners, aggrieved for being short-charged by the others, blew the lid and instructed the Chief Executive of SPOCL Mr. Quincy Sintin Aboagye to detain the ship.” But with the help of an influential member in the Ghanaian cabinet the vessel was released and returned to Nigeria. “The perpetrators were never apprehended, the Navy said the Captain and his crew escaped with another ship into the Gulf of Guinea.”

The oil theft saga, industry insiders say, is just beginning as one official told Weekly Trust that the scale of the crime is profound. “Only a government sincere in intention can even try to do something,” he said.