Preliminary investigation revealed that, while the vessel was nominated to load 400 Metric Tones (MT) of Automotive Gas Oil (AGO), it was discovered that she had about 1,000 MT of AGO onboard even as the final process for loading approval was not completed. The vessel would be handed over to relevant prosecuting agency for further action.

Similarly, the patrol teams deployed by FOB BONNY on 1 Nov 16 raided Ogbunku and Bolo Creeks in Rivers State, during which it destroyed two illegal refineries, one Cotonou boat and six storage tanks containing suspected illegally refined AGO.

Other items destroyed include four storage tanks of suspected stolen crude oil and three speedboats carrying eight drums each of suspected illegally refined AGO. Additionally, the patrol team recovered three outboard engines of 40 Horse Power capacity and three pumping machines.

Furthermore, on 3 November 16, FOB ESCRAVOS patrol team raided an illegal refinery site at Sara Creek and Ekpemu Community in Warri South West LGA, Delta State. During the raid, the patrol team destroyed 50 cooking points, nine Cotonou boat containing large quantities of suspected stolen crude oil and about 1000 jerry cans of Dual Purpose Kerosene (DPK).

In another development, NNS PATHFINDER patrol team raided an illegal refinery site around Ogu-bolo and Degema LGAs of Rivers State and destroyed five illegal refineries as well as one Cotonou boat carrying 50 drums of illegally refined AGO.

Consequently, the NN is once again sending a strong warning signal to vessels and elements operating in the maritime domain to avoid the temptation of engaging in criminal activities as the service would not tolerate any form of economic sabotage and security breaches in the area.

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It said the joint operation involving the Army, Police, State Security Service (SSS) and Civil Defence engaged the Air Force to capture wider latitude of the vandals’ shanties and nab suspected operatives.

The military swung into action last Thursday following a directive of the Chief of Defence Staff (CDS) to smoke out criminals operating in the entirety of Arepo and its extensions to parts of Lagos.

The Flag Officer Commanding Western Naval Command, Rear Admiral Ferguson Bobai, addressing the media, said the obnoxious development of kidnapping, robbery attacks and vandalism, which has overtime saturated the area, prompted military strikes.

He said the force was yet to put a figure to the number of casualties recorded in its first strike action as it was yet to wholly penetrate the creeks.

According to him, the military was fully braced up with well-wrought strategies to demolish their base.

“We have commenced an ongoing operation around Arepo. We are all very familiar with the ugly situation that have been developing around Arepo, ranging from pipeline vandalism to kidnapping, armed robbery, and so on.

“Just last month, we got directive from the Chief of Defence Staff that we should carry out an operation to the general area of Arepo, with a view to dismantling vandals’ shanties scattered around Arepo, Ibafo, Ishawo.

“Initially, we were directed not to use air power, but when we carried out assessment of the operation area, a lot of them had moved from areas accessible by water and land to areas that are very swampy, into the mangroves of the area.

“We had to get back to the CDS that the best way we can take out these targets is by the use of air power, and the CDS granted us permission to do a general re-assessment and employ attack helicopters to take out those targets. We had to use air power because of the nature of the terrain.”

He explained that an assessment of the target area revealed that oil bunkering operation was ongoing at full fledge.

The military vowed to bring to book the sponsors of the act and thwart the extant market they supply.

“Yesterday, we initiated the operation and we were able to knock off some targets, then a surveillance aircraft went up to do the after battle surveillance for us.

“We were able to interpret the video clip, and we could see that after the first attack, they came out from where they were hiding with guns.

“We could see one of their canoes which they mounted a GPMG on it. The interpretation is that all that is happening there is deliberate and well planned since they could arm themselves to that magnitude.

“It is our wish that at the end of this operation, we would find a means to go into the place to comb that general area.

“We anticipated that some of them will run away and the only two ways they could leave that place is either by land or water.

“The land component: the army, the police, Civil defence have identified some get-away routes.

“The get-away routes by water, the naval forces have blocked them. We have also employed the SSS. On the other hand, we have blocked escape routes towards Ogun State.

“The essence of having blockages on land is that when they are running out, we would be able to grab them, profile them, investigate them and trace their sponsors.

“Being in business means that they have a market. We want to identify that market. We are going to sustain this operation and see where it would take us.

Bobai noted that the two states involved, Lagos and Ogun states, have been adequately informed of the operation, adding that residents had no cause to panic.

“We are in touch with Ogun and Lagos state governments because the general operation area lies between the states,” he said.

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Sources said that the suspected pirates in the vicious operations on Sunday evening, also hijacked a military gunboat after killing their victims.

It was also learnt that the pirates laid ambush on the soldiers and killed them at Santa Barbara, a notorious river in Nembe area of the state.

The Sunday attack is one in a series of attacks on security personnel and the civilian populace in the state.

In the recent attack, the victims were said to be escorting some items to Brass terminal owned by an international oil company when the gunmen opened fire on them.

A security source said the soldiers were sailing from Port Harcourt, Rivers State, to Brass in Bayelsa State, when they were allegedly attacked.

“They were ambushed by deadly pirates. It is suspected that the gunmen either hijacked the gunboat, later killed the soldiers and threw their dead bodies into the water or they shot and pushed them into the water before stealing the gunboat.

“The gunboat appears to be the target of the hoodlums, especially as arms were being stockpiled by militants for 2015. The Santa Barbara, where the incident took place is in Nembe. It is a hotbed for pirate acticities in the state,” said a source who pleaded anonymity.

JTF however said that it did not believe the soldiers were dead, insisting, rather that they are missing.

JTF’s Coordnator, Joint Media Campaign Centre, Col. Mustapha Anka, confirmed the attack, but said it was premature to conclude that the soldiers were killed by the pirates.

Anka said the JTF had put its search-and-rescue team in motion, adding that frantic efforts were being made to locate the soldiers’ whereabouts.

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Yakubu who spoke at the capacity building workshop for media practitioners themed: “The role of NNPC in the Nigerian economy,” held in Uyo, Akwa Ibom State, explained that refineries have capacity to refine more crude but there is currently limited supply due to pipeline vandalism.

He said that the process of rehabilitation of the three refineries is underway, adding that there has been a procurement of long lead items, noting that the rehabilitation of Port Harcourt refinery has begun while awaiting the commencement of the entire rehabilitation programme.

He explained that major works have been carried out to ensure continued operations of the refineries, stressing that “The capacity utilization of the refineries as we speak today is 60 per cent of their nameplate. The 60 per cent nameplate capacity is not because the plants cannot take more but because we have this challenge with crude oil supply.”

He noted that the corporation has had recourse to the original builders of the refineries for benefits of their experience and expertise in terms of rehabilitation and equipment provision for the entities to derive maximum value from the money to be spent.

Yakubu also said that oil production has increased from 2.3 million barrels per day (mbpd) to 2.5 mbpd. He said the production feat was attained despite challenges of illegal oil bunkering and theft in the sector.

“In line with Federal Government’s aspiration to transform the industry and especially NNPC into a competitive oil and gas company, on assumption of office, we met and set up strategies to improve oil and gas production. On the average today, we are able to maintain 2.5 million barrels per day production.

“Although we have serious challenges with crude oil theft and bunkering from our major trunk lines, we have been able to maintain 2.5 million barrels per day production.” And these strong lines are mainly in the west, east and the centre of the country.”

He also noted that gas flaring has been reduced to 10 per cent from 30 per cent a few years ago. He noted that the period within which he has served as group managing director, has witnessed improvement in the performance of the company.

He said: “As at today, NPDC is proudly the fifth largest producer of crude oil as well the leading gas supplier in the country. Its production increased from 70,000 barrel per day when we came in and as at today we have about 170,000 barrel per day production and aspire to increase to 250,000 bpd by 2020. It has reserves of 2.1million barrel also.”

He also said that the company has increased its gas contribution to the domestic market to over 570 million standard cubic feet per day.

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Alamieseigha also declared that 50 percent of Nigerian oil was stolen daily and accused foreign embassies of having full knowledge of illegal purchase of crude oil from Nigeria.

Speaking Monday when officials of the Nigerian National Petroleum Corporation, NNPC, appeared before the Senator Adamu Aliero led Committee on Public Finance and Revenue, the former governor and a delegate from Bayelsa State told members of the Committee that he facilitated the arrest of some oil thieves in Bayelsa state as governor, but to his total dismay, these persons were left off the hook following what he termed high level conspiracy in high quarters and with the connivance of NNPC officials.

Alamieyeseigha also revealed that expatriates in the oil sectors were also deeply involved in the illegal activities in the industry and even collaborated with militants to kidnap themselves in the heydays of militancy in the Niger Delta region.

“I had one experience. Tankers were loaded in Bayelsa. I got the information and laid ambush for them and arrested them. About 14 big tankers and they were handed over to the police. They were charged to court and the judge ordered that the product should be tested to they were crude oil.

“NNPC was invited, they came took the sample and after a week the result came out as agro chemical and before I know all of them have been released. I went to President (Olusegun) Obasanjo. I even accused him that he is the chief bunkerer, that he should not call me again.

“I also accused him that those that are involved are also sitting in this arena and if he pushed me beyond that I am going to mention names. It became so hot that I was persuaded to follow him to his office. He held my hand and we entered. So there is actually enough intelligence that is open to the presidency. He himself, President Obasanjo, started mentioning names. I said ‘oh, you are the chief bunkerer, I confirm, you know them, don’t call me again.

“In fact, expatriates are more involved in the crime than Nigerians. In fact, some of them even offer themselves to be arrested so that when there is compensation, they have a share of it. They are also involved in kidnapping.

“They allow themselves to be kidnapped. Oil companies are invited, their home countries will shout that their men are kidnapped; management of oil companies will now make efforts and pay ransom. When the ransom is paid, they are released and that money is shared among them. So, it is a high level conspiracy that is going on.”

The former governor also alleged that retired naval officers were involved in oil theft, explained that the local boys that were regularly arrested for oil theft were mere “escorts” as they do not have the international connections to sell stolen crude oil, adding,

“The so-called militants we celebrate that tap oil are only employed as escorts. If there is no buyer, we will not find a seller. The post retirement job of a senior naval officer is bunkering. None of those boys you see in the Niger Delta have the necessary connections to bring ships to our economic zone to lift. Those that are making the connections are also part of us.

“In fact, almost 50 percent of what we produce in this country is being siphoned outside to augment the international market. They know the type of oil that is coming out from Nigeria is different from others. The sulphur content here is very low and they know this but everybody is gaining from it.

“Let the Federal Government send warning letter to all the embassies that are in this country and give them three months. After three months, if we see any ship that is not authorized in our economic zone, especially in the Niger Delta, it will should be destroyed.

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Uduaghan made the call at the second edition of the Delta Oil and Gas Industry Stakeholders’ Conference at the Petroleum Training Institute, Effurun, on Tuesday.

The theme of the two day conference is “Securing Oil and Gas Investment in Delta: The Role of Stakeholders, Oil and Gas Company, Host communities, Government and Society’’.

He said that if illegal bunkering was not nipped in the bud it would have an adverse effect on future generation.

According to him, if we are not able to stop illegal bunkering today, it will take about 50 years to clean up the environment to its natural state.

Uduaghan stressed the need to also look at the environmental degradation by crude oil while focusing at the dwindling revenue occasioned by crude oil theft, adding that “Environmental pollution has greatly affected our ecosystem.”

The governor assured the people that the Petroleum Industry Bill when passed into law would address most of the challenges faced in the region.

Rear Adm. Samuel Alade, Flag Officer Commanding (FOC) Western Naval Command, alleged that oil bunkers collaborated with workers in the oil companies to perpetrate the illicit act. “Most of the oil thefts are perpetrated at the loading points and some of the oil workers are involved,” he said.

Alade exonerated the Navy from the crime, adding that it only apprehended criminals and hand them over to the appropriate authorities for prosecution.

“We operate within the ambit of the law. Navy is not allowed to prosecute criminals rather we hand them over to the police or the Economic and Financial Crime Commission (EFCC) for prosecution.”

Alade identified poor logistics as a great challenge to the fight against crude oil theft in the country and urged government to provide more offshore patrol vessels to enhance their operations in waterways.

The FOC recommended collaborations among the navy, the multinationals and the host communities to effectively eradicate oil bunkering in the country.

The Manager, Ogoni Restoration Project of the Shell Petroleum Development Company (SPDC), Augustine Igbuku, identified poverty and high unemployment as some of the factors fuelling crude oil theft.

Igbuku, who represented the Managing Director of SPDC, Mutiu Sunmonu, said crude oil theft was a serious concern to the people, environment and the economy.

“Crude oil theft increases arm proliferation, attraction to crime, higher incidence of school dropouts, increase inflow of migrant workers to service the illegal business.

“There is need to improve intelligence gathering, stronger policing and prosecution of suspected criminals, to effectively tackle the menace,’’ he said.

Ayiri Emami, who represented Itsekiri Development Council, said that the community, security agencies and the multinational were all involved in the illicit business and called for a better understanding between the communities and the governments to address the challenges.

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Sheyi Gambo, the National Public Relations Officer of PENGASSAN, who stated this said that the bill was yet to be passed 12 years after stakeholders’ arguments and counter-arguments over its importance.

He expressed regret that this was in spite of promises by some members of the National Assembly that the bill would be passed before the end of 2013.

According to him, non-passage of the bill is responsible for investors’ apathy in the oil and gas sector.

“A development that has led to the holding back of several billion dollars worth of investments expected in the economy through the oil industry.

Gambo said that the delay in passage of the bill was among several other uncertainties holding back most International Oil Companies (IOCs) planned investment of about $100 billion in offshore deepwater projects.

He said that some oil companies, which planned to invest in the oil and gas sector, would rather wait for stable and right conditions before they could commit their finances to any project.

Gambo lamented the continued loss of revenues and investments due to the delay in the passage of the PIB, crude oil theft, bunkering and insecurity, among others.

He said that the oil and gas industry might be slipping into the situation when it took Mexico about 50 years to recover from such challenges in its oil industry.

“I recall the Mexican story, it took the country 50 years to recover from that loss in oil production and my worry is that we are slipping into that.

“Even today, if we produce a modest of three million barrels per day and just assume a modest decline rate of 10 per cent that leaves us with 2.7mbpd.

“What this means is that for us to maintain that level of three million barrels per day, we must produce additional 300,000bpd.

Gambo said that non-passage of the bill was hurting indigenous oil servicing companies as this had led to few jobs for them, while many of them are contemplating sacking some of their staff.

He said that IOCs are holding onto investments because of the non-passage of the bill.

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