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Thu, Mar

Oil theft: NNPC deliberately misleading Nigerian – NAVY

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Nigerian Navy has accused the Nigerian National Petroleum Corporation Limited, NNPCL of being economical with the truth about oil theft that has become the talk of the town in recent days in the country, saying figures were being exaggerated. A Navy General of Training and Operations, Rear Admiral Solomon Agada made the disclosure yesterday while speaking to the Senate House Committee on Economic and Financial Crime at the interactive session for the relevant agency to implement the proceeds of the Crime (Recovery and Management) Act, 2022 at the National Assembly.


The Naval Chief disclosed that several interactions with the NNPC have tabled the real causes of the fuel scarcity that have refused to go away in the country, saying that there was no way anyone would steal 100,000 barrels of oil in a day, but the NNPC had deliberately continued to mislead Nigerians. 

Agada stated this when he was quarried by the Chairman Senate Committee, Senator Suleiman Kwari on why the country has continued to experience oil theft despite the military presence on our waterways. 

Kwari queried, “The oil theft issue has been a very worrisome one to every Nigerian and more importantly, it has negatively impacted our economy. How come the Navy hasn’t been able to solve the issue of oil theft and if the Navy is claiming that the waterways are secured, why are there still cases of oil theft?” 

Agada in his response said, “The challenge is that because of the criminal activity inshore by the illegal refiners in tapping into the export lines, those export lines have not been in operation since early this year. 

He added, “The major terminals have not been able to process fuel for export since around February/March and instead of the NNPC telling the Federal Government that this product is not brought out to be able to process as export, they say the oil was stolen.” 

The Naval Chief insisted that the NNPC should tell Nigerians the difference between the oil that they have shut in and not brought out, and what is being stolen. 

Agada explained, “The stolen produce that we have been dealing with among illegal refineries is nothing compared to what the NNPC is declaring as being stolen. 

“The only reasonable explanation why the fuels are not coming out is because the Shell platform on Bonny Island is not exporting and the Chevron terminal in Escravos is also not exporting. All these things are very clear, but because it is easier to say these things are stolen, then they just come up with that. 

“Let’s get someone who can do a proper analysis of these figures and we’ll find out that these claims are just bogus; there is nothing substantive about them. We have communicated appropriately with the NNPC; even at our last interface with them, they agreed with us; but when they come to the public, they say oil theft, hiding the fact from the public.” 

Senator Yusuf in his submission asked the Navy that the NNPC claim crude pipelines were being tapped from the pressure pipe undersea and crude oil was usually transferred from there into vessels, and this had been happening for nine years. 

“Is the Navy aware or not of the taping going on under the sea?”

Agada responded, “On the tapping of the vessel, I also visited that location with the Chief of Defence Staff and there is a directive by the President from the office of the Secretary to the Government of the Federation to set up a committee on that particular incident. 

“We are not indicting the NNPCL; we are just saying that let matters be presented correctly so that people can make informed decisions. The Navy has no hand in any stealing of oil in this country. I have no ship or vessel, nor do I know anyone who has; you can investigate me.” 

The Naval chief added that the hike experienced in diesel prices was due to the operation in stopping illegal bunkers. 

He explained, “People who have been doing this illegal business will confirm to you that since we started this special task force operation in April, their business has gone sour. 

“This is also responsible for the increase in diesel prices in the country. Since we stopped the illegal diesel from coming to the market, the price has gone up, because once there is high demand and the supply is low, the price will go up. 

“People who ought to import will cut corners and buy the illegal products, but now that they can’t import and the illegal ones are not coming, this has reduced the quantity in the country. But somehow, nobody is coming to share this information with the people.” 

He applauded the federal government that it has invested heavily in infrastructure through Maritime Domain Awareness Infrastructure, which had assisted the Navy in detecting and arresting illegal refiners and vessels that were usually handed over to the Economic and Financial Crimes Commission for prosecution. 

Explaining how the facility works, Agada said, “And right from Abuja here, we have the capacity to see the entire Nigeria Exclusive Economic Zone. We have 24 hours watch on the exclusive economic zone. Any vessel that enters Nigerian waters that are not permitted to be is immediately arrested because we see their movement. 

“Any vessel in the international waters is expected to have their automatic identification system on and that shows that you’re transparently operating; so, any vessel that switches off its identification system automatically becomes a vessel for the Nigeria Navy and we will immediately arrest them and thereafter investigate. 

“So, as of today, there is no tanker that can enter Nigerian waters to carry anything without being noticed. All these things that happened now have sent a very strong signal to the international community that Nigeria is now a place where illegal activities can’t take place any more.” 

Earlier in his explanation, Kwari said, “As part of our oversight duties, it has become imperative to ascertain your organization's level of compliance with the specific provisions of this Act with due respect to the actual laid down procedures on how you are to handle and dispose of forfeited assets. 

Meanwhile, it was learned that the NNPC has 21 depots, which are meant for the storage of petroleum products, particularly Premium Motor Spirit, popularly called petrol, but all of them are not functioning. 

Just like the four refineries, they have been redundant under the management of the NNPC.

More so, inadequate daughter vessel that will be used in evacuating the petroleum product from the mother vessel to the said deports are another challenge that is responsible for fuel scarcity.

 

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