Tackling crude oil thefts

The increasing incidence of crude oil thefts has become a source of concern to Nigerians and oil companies operating in the country. Hard hit are powers generating companies that depend on extensive pipelines to deliver oil and gas to their stations. The situation is made worse by oil bunkering and pipeline vandals who are always devising more sinister ways of evading detection by security agencies while carrying out their nefarious acts. In the process, the country and other related agencies continue to lose huge sums of money through repairing and replacing vandalised pipes, even when communities are mostly left to bear the brunt of oil spills.
Estimates put the volume of crude oil theft in the Niger Delta region to about 400,000 barrels per day. For this, Nigeria oil losses due to crude oil theft translate to almost $20 billion yearly. These losses do not only undermine Nigeria’s economy in terms of foreign exchange deficit, they also pose a threat to national security. Aerial images show illegal oil refineries in thousands doting the Niger Delta region.
These are avenues where stolen crude oil being ferried across the waterways in barges, canoes and vessels is illegally refined locally.      Crude oil theft and artisanal refining are criminal acts that are not only against the law but capable of mortgaging the future of the community.
Aside from revenue loss to government and other stakeholders, significant portions of the stolen crude are spilled, blighting large swathes of the ecosystem.
According to the London-based research group, Chatham House, “Oil is being stolen on an ‘industrial scale’ in Nigeria, the world’s 13th largest producer, and the country’s politicians and security officials are among those profiting.”
The scale of crude oil theft is so alarming that Nigerians are wondering whether the entire tragedy is perpetrated by local oil thieves. Curiously, Nigerians do not get to hear a lot about the real cause of the problem or what stakeholders are doing to stem the tide of oil thefts that is ravaging the nation’s economy. For all intents and purpose, crude oil theft involves a weird and complex web of relationships, spanning all levels of the society. Report has it that   stolen Nigerian crude oil is transported on internationally registered vessels, sold to international buyers, processed by international oil refineries and paid for using international bank accounts. That is why the  administration of President Muhammadu Buhari should take very drastic actions to end the menace, especially now that international crude oil price continues to tumble.
In order to achieve positive result,the so-called powerful Nigerians and military personnel allegedly bankrolling the illegal bunkering must be unveiled and brought to justice to serve as a deterrent to potential economic saboteurs.
The NNPC ought to deploy its security and surveillance apparatus to monitor its oil installations, and clamp down on oil thieves and illegally refined petroleum products being sold on the black market. This will help in preventing product adulteration and safeguarding the health of innocent users of petroleum products.

Moreover, the PIB should establish a standard pursuant to the American Petroleum Institute (API) standards of relevance to pipeline integrity and management. The process involves operator’s regular conduct and disclosure of ‘Asset Integrity Reviews’, and to have in place standards that require operators act to prevent sabotage and illegal activities.
All operators should be required to take specific steps, in line with international best practices, to make their infrastructure and operations as safe as practicable from sabotage, while upstream operators should be mandated to install surveillance systems to prevent sabotage and illegal activity. Such systems should comply with the rights of individuals and communities, including their right to privacy.