Senate Interim Report on Crude Oil Theft Exposes $300bn Unaccounted for

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By Ogechi Anita Agu

Report of Senate Ad-hoc committee investigating crude oil theft and related sabotage in the Niger Delta has uncovered $300 billion lost to oil thieves.

The chairman of the committee, Senator Ned Nwoko (Delta North), while presenting an interim report of the committee during the plenary on Wednesday said the committee’s findings so far indicate massive revenue losses running into more than $300 billion from unaccounted crude oil proceeds over the years.

He said the report recommends strict enforcement of internationally recognised crude oil measurement standards at all production sites and export terminals.

He stated that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) should be mandated to acquire modern measuring technology. He further stressed on the need for Federal Government to deploy surveillance technology, including unmanned aerial vehicles, to support security agencies in tackling oil theft.
“Special courts should be set up to promptly prosecute crude oil thieves and their collaborators,” he said.

Nwoko said the host communities development trust under the Petroleum Industry Act (PIA) should be fully implemented to reduce sabotage.

Other recommendations include “Abandoned or decommissioned oil wells should be handed to NUPRC for possible allocation to modular refineries to support local processing.

“The committee should be empowered to “track and trace” proceeds of stolen crude oil locally and internationally, noting that consultant reviews suggest over $22 billion, $81 billion, and $200 billion in different periods remain unaccounted,” he added..

Deputy Senate Leader, Senator Lola Ashiru (Kwara South) said the estimated losses amount to “almost 10 years of Nigeria’s budget” and urged the committee to continue its work.

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Godswill Akpabio, Senate President, commended the committee for the “good work” and said the senate will consider recommendations after the final report is submitted.

He instructed the committee to continue its investigation and present a comprehensive final report.

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Dangote Refinery makes case for 100% Nigerian crude …as Senate probes alleged sabotage in petroleum industry By Our Correspondent The Dangote Refinery has made passionate appeal to the Senate, NNPCL, NUPRC, NDMPRA and other stakeholders in the industry to help supply the refinery its crude oil need 100 per cent from Nigeria. Group Strategy Officer, Dangote Refinery, Aliyu Suleiman made the appeal at the Senate Ad-hoc Committee probing alleged economic sabotage in petroleum industry at the Senate Complex, Abuja on Wednesday. He said right now, the refinery bought about 50 million barrels of crude out of which about 60% comes from NNPC. Mr. Suleiman who expressed gratitude to NNPC for their support, added that, essentially, all they are asking is for them to get their crude requirement from Nigeria 100%. “Let’s be very clear, we are happy to pay fair prices. We hope that we’ll work with the regulator and we’ll get their support so that the refinery can get 100% of its crude from Nigeria and buy the crude from companies that produce it in Nigeria not from international middlemen. “We count on support of the committee, the regulators and other stakeholders to ensure that the refinery succeeds, because if it does, aside from the other obvious benefits, like forex generation, job creation and the rest, most importantly, there is the psychological benefit of making, giving Nigerians, Africa in general, the confidence that we can succeed. Giving a progress update on the refinery, Mr. Suleiman said since the refinery started full trial production in January and then full time production started in March, we processed about 50 million barrels of crude. “We have produced about five million tons of petroleum products. And these petroleum products have been sold to various parts of the country and Jet oil has been sold in Europe since May. He said other products have been sent to places as far as Asia, US, Brazil, and so on. So the refinery has been making a lot of progress. He emphasized the importance of deliberately protecting local industries for the over all economic development of the country. According to him, “the US, for example, has done that, to protect their own industries against attack by China that subsidize their own industries and then sends them to the US. So that’s the first question. We want to urge the committee to consider if we deserve protection against them”. He posed three basic questions that revolved around protection of local industries for the consideration of the committee and Nigerians at large. The questions are: “Do local refineries deserve protection from NUPRC? “Should Nigeria protect its infant industries in order to improve investment? “Should local refineries have preferential access to Nigerian crude? He said Dangote found itself competing against Russian products that were produced with oil that is valued at $60. “We all know that because of the cap that has been put Russian oil, the value of Russian oil today in the market is $60. And that’s what Russia is using to produce their products and those products are being sent in large quantities into Africa to compete with products that are produced in refineries that buy crude at $90. “We don’t think this will be a fair competitive environment and I think that when you have such unfair competition, it is normal to put protective measures. “I think even in the animal world, the moment a new baby is born, they don’t just go and leave it out in the wild. “What we want is to sell more of our products in Nigeria, because we believe we can do that, we can compete. And even though there are concerns that have been expressed around monopoly, that is a problem that has been identified. The right thing to do is to say, how do we address this problem? If monopoly is a risk, how do we address this risk while at the same time ensuring that we protect our domestic industries? The good thing is that in the PIA, there are provisions around that, you can monitor and take action if you feel there’s monopoly.

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Share…as Senate probes alleged sabotage in petroleum industry By Our Correspondent The Dangote Refinery has made passionate appeal to the Senate, NNPCL, NUPRC, NDMPRA and […]

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