Komolafe: $3bn Oil Theft in Niger Delta Criminal, Horrific
*Says security of oil assets outside NUPRC’s mandate
Emmanuel Addeh in Abuja
The Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Mr Gbenga Komolafe, Monday described the massive theft of crude oil in the Niger Delta as criminal and horrific.
Speaking on Arise Television, THISDAY’s broadcast arm, the NUPRC helmsman stated that while over $2 billion worth of oil was estimated to have been illegally siphoned in 2021, when added to the first quarter of 2022, it could have climbed beyond $3 billion.
Recently, the Governor of the Central Bank of Nigeria (CBN) Godwin Emefiele, who spoke at the end of the 284th monetary policy committee (MPC) meeting in Abuja, blamed the trend of oil theft for the inability of Nigeria to meet its oil production quota.
Describing the situation as unprecedented, he stated that the occurrence had had a debilitating effect on government revenue and accretion to reserves, adding that the global prices have gone up and are compounded by the shortage of supply of petroleum products.
The association of indigenous exploration and production companies, the Independent Petroleum Producers Group (IPPG), also a few weeks ago put it succinctly when it described the occurrence as an “existential threat.”
Chairman, IPPG, Mr Abdulrasaq Isa, speaking at the 5th Nigeria International Energy Summit (NIES), said that the challenge should be tackled before it finally kills the sector.
Also, weeks ago, Aiteo Eastern Exploration and Production Company (AEEPCO), operators of the Nembe Creek Trunk Line (NCTL) pipeline, threatened to exit the facility due to incessant vandalism, sabotage and outright theft.
In the same vein, THISDAY reported a Co-founder and former Chief Executive Officer of Seplat Energy Plc, Mr Austin Avuru as recently calling for a state of emergency in the Nigerian oil and gas sector, revealing that up to 80 per cent of oil pumped in the country, particularly in the East, is stolen.
Avuru’s comments came days after a businessman and Chairman Heirs Holdings, Mr Tony Elumelu, similarly bemoaned the worsening state of the industry, stressing that about 95 per cent of oil production does not get to the terminal.
Last week, the General Overseer of the Redeemed Christian Church of God (RCCG), Pastor Enoch Adeboye, warned that Nigeria might go bankrupt if the trend was not checked.
He also raised concerns over the country’s economic future, warning that Nigeria’s debt to service revenue ratio might pose danger for decades to come.
However, speaking today, Komolafe stated that it was not the duty of the commission to secure government oil and gas assets, stressing that the organisation does not “regulate” criminal activities.
“The commission does not regulate criminals, that’s not the mandate of the agency. It does not actually extend to dealing with criminal. We do not have the abrasive or the coercive machinery to subdue criminals. Our mandate actually covers technical and commercial regulatory functions,” he argued.
Komolafe noted that whatever affects the oil sector affects the health of the entire nation, reiterating that the upstream and downstream parts of the industry are facing challenges at the moment.
“What we’re witnessing has reached a very alarming situation, a very horrific situation,” he lamented.
According to him, getting investors to put their hard-earned money into the sector has been very difficult with the existing harsh conditions , including the theft of the commodity by saboteurs. “It is worrisome due to the activities of these criminals,” he lamented.
By rough estimates , the NUPRC had said that Nigeria lost more than 115,000 barrels per day (bpd) to oil theft and vandalism between January 2021 and February 2022.
Komolafe reiterated that the NUPRC had established a panel to audit the activities of operators in the upstream sector to ascertain the actual volume of oil lost to the menace.
The commission’s chief executive further pushed back on insinuations that the Timipre Sylva-led steering committee was slowing down work on the commencement of the Petroleum Industry Act (PIA), saying that the collaboration has been seamless.
