Thursday, September 4, 2014

Navy accuses IOCs of oil theft in Nigeria


Navy accuses IOCs of oil theft in Nigeria
Chief of Naval Staff, Vice Admiral Usman Jibrin, yesterday accused International Oil Companies (IOCs) operating in Nigeria of being involved in the theft of the  Presination’s crude oil.
The Navy boss disclosed this at a meeting with the top leadership of the Navy and chief executive officers of the IOCs in Abuja. He said that the Navy would not pretend about the involvement of the oil companies in the crude oil theft.
Jibrin said it took him seven-and-a-half months to call the first meeting between the Navy and the oil firms since his appointment to discuss issues of concern in the oil sector, which included oil theft and illegal bunkering.
He also explained that he made it clear that the MD/CEOs should attend the meeting in person without representation because of the need to dis-cuss the issues, which he described as “worrisome” but the request was disregarded.

The Naval chief said that some of the oil firms had deliberately left the manifolds of their oil wells open for years without any conscious efforts to close them in spite of the fact that only experts had the capacity to reopen closed manifolds. He presaged that the Navy would ensure the arrest of operators of oil firms who decided to leave the manifolds of their oil wells open for years without closing them.
Jibrin also threatened to deal with any Naval officer found to have been involved in the criminal theft of the nation’s oil resources in accordance with the laws guiding the Armed Forces of Nigeria.
He warned that the Navy would go beyond accusing the firms to mentioning names of stakeholders suspected to be involved in the theft of the nation’s resources.
The Navy boss wondered why the oil chiefs had not given the expected cooperation in the bid to seek a concerted solution to the raging issue of oil theft. He said that the time had come for the oil firms and the security agencies to seek the solutions to the issue of oil theft in the country.
Jibrin said: “We have a serious challenge and we need the commitment of the CEOs to discuss in regards to oil theft. It has become worrisome that we have not been able to check the issue of oil well. It has gotten to a point that instead of pointing accusing fingers we will mention names including the major stakeholders.
“We cannot pretend that the oil companies do no not have a hand in some of these illegalities; pretending is to allow it to continue.
We will not pretend. I can start by citing some examples; for some companies that their oil wells are open for years and have done nothing to close them up… Because of the technical nature of the manifolds, once they are closed, only the experts can open them.
Why have they been left opened for years? “I have pictures here, I can pass it round for you to have a look at them.
Why is it that all of us cannot sit down at a roundtable and provide a solution?
Why are we denting the image of this country? It has come to a point that we would meet, discuss and provide solution to issues pertaining to oil theft. “Government is worried and those of us that are agents of government are also worried. On my part, if any of my personnel is involved, they will be dealt adequately in accordance to the existing law of the Armed Forces.
“I have decided that I will take some steps that if the manifolds are left open for years and our attention is drawn to the need for it to be closed, the oil company who owns it and left it without taken appropriate actions, we can look for them and start arresting them.”
He said that the government was taking the issue of oil theft seriously because of the loss of revenue and the inimical effect of oil theft on the environment.
Speaking on behalf of the IOCs, the Chairman of the Oil Producer Trading Services, Mr. Ayobami Olubiyi, said that the companies had also taken steps to curb the threat of oil theft.
He recalled that the Federal Government set up an ad hoc committee on the issue with some funds released to address the pressing issue some months ago.
Olubiyi said that the men of Nigerian Navy were involved in securing the operations of the oil firm in the Niger Delta and Lagos.
Olubiyi said: “I want to assure you that concerning oil theft, we have taken a lot of steps.
That is why in the last couple of months, an ad hoc committee was set up by the Federal Government to look into this and I am aware that some monies have been released to help curtail this situation.
“We will continue to advocate for a true platform and as you are aware, we have a number of your officers and men that have been supporting our operations in the Delta including Lagos.
They have been very professional in the way and manner they carry out this operation and together with CNS, I am sure we will all be able to work to ensure that, we mitigate this very unfortunate situation in our country today.”
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