In terms of an orthodox definition and in the context of nigeria, oil theft is constituted as the illegal appropriation of refined oil or crude oil from the various multinational oil companies that are positioned in the country through the process of oil bunkering 4 this includes the theft, diversion, and smuggling of petroleum products. Adedipe associates limited, victoria island, lagos, nigeria. In the country, pipeline vandalization is usually regarded as an act of sabotage. The niger delta is a host to nigerias proved oil and gas reserves.
Posts about oil bunkering in nigeria written by nzesylva. List and directories of oil and gas companies in nigeria. Niger delta, where she has worked with nigerian governments. Recent incidents of oil pipeline sabotage and its implications hold serious threats for national security in nigeria. The niger delta is the most important oil producing region in africa, with its oil providing 70 per cent of nigeria s government revenue. Fortyeightyearold ebiowei drags a hose used to siphon crude oil at an illegal refinery site in nigerias oilrich state of bayelsa. Policy brief series natural resource governance institute. Sadly, that same resource is being savagely stolen in copious quantities on daily basis adeboboye, 20. With headquarters in apapa, glutfield nigeria provides superior vendor and bunkering services for vessels, serving both the domestic and international ships and companies. Since the company that would become royal dutch shell plc discovered the first commercially viable well in. The upsurge of oil theft and illegal bunkering in the. Ghanas bunkering industry is suffering from a lack of investment, the news site ghana web reports. Anchored on a frustrationaggression conceptual and theoretical framework, the study found that deprivation of oil benefits to nigerian citizens manifested in illegal oil bunkering, pipeline vandalization, crossborder smuggling of petroleum products, attacks on oil installations, kidnapping, and piracy, with attendant threats to national security.
Materials and methods extensive research was carried out on the fundamentals requirements and effective management of bunkering operations in nigeria and how to start a legal bunkering business in nigeria. Oil theft in nigeria is considered to be the illegal appropriation of crude or refined oil products. Oil pipeline vandalism and nigerias national security. American journal of engineering research ajer 2016. Pdf piracy and maritime security in the gulf of guinea. The paradox of the black gold 341 because of the con. This article seeks to explain the recent surge in oil theft in nigeria from the. Nigerian army uncovers unprecedented oil bunkering site. Military involvement in oil theft in the niger delta. Oil theft, illegal bunkering and pipeline vandalism iiard. The nigerian state and oil theft in the niger delta region of nigeria pdf. Public regulation of the oil and gas industry in nigeria. Yet nigeria is the most afflicted by maritime threats pervading the gg region. Pdf bunkering is the practice and business whereby duly licensed.
However, oil bunkering and oil theft is ingeniously the most lucrative private business in the nigerian petroleum industries in recent times, even though, the. Oil bunkering threatens nigerias economy, environment. Pdf upsurge of oil theft and illegal bunkering in the. Blood oil in the niger delta united states institute of peace. So, while the kingpins indulge in organised oil theft via pipeline vandalism oil bunkering often in collusion with elements of public security. In many countries of the world, the free market economy plays important role while in. The aim of this study is to critically examine the methods, actors, causes, impacts of oil theft and the measures adopted by nigerian governments to combat oil. Under nigerian laws, illegal oil bunkering oil theft and pipeline vandalization are federal crimes. Please refer to imos manual on oil pollution, section 1 prevention as amended, and the ics and ocimf ship to ship.
Oil bunkering undermining nigerian economy vanguard news. If communities and individuals in other regions are given a free. Pdf this paper examines the impact of illegal oil bunkering and theft which has continued to threaten the. In this paper, therefore, we will argue that, oil induced militant agitations have had adverse. This study aims to extend the frontier of knowledge by estimating the impact of the oil price shocks on the nigerian economic growth using aggregate demand framework that theoretically connect analytical variables, rather than. It is the countrys major export, fetching millions of petrodollars to the country each day. The second part of the article will focus on the public regulation of the oil and gas industry in nigeria. Nigerias oil companies are battling against rising theft costing an estimated 150,000 barrels of crude a day, a top oil official said tuesday in abuja, according to an afp report. Ap house, 5456 broad street, marina, lagos island, lagos. Culture and the amnesty program in the niger delta region of nigeria dr. Government should establish free trade zone ftz and allow minirefineries. Effects of illegal oil bunkering and piracy in nigeria.
The legislative framework regulating the nigerian oil industry, including the constitution of nigeria 1999, land. Navy raids oil bunkering operations the anti crude oil theft operations of the nigerian navy has once again yielded results with the sustained patrol of the maritime area. Oil companies, both producing and marketing, operate under licences, permits or leases granted by the ministry pursuant to the provisions of the petroleum act and specific regulations for activities that include, exploration, production, processing and. A bill for an act to repeal the oil and gas export free zone authority act, and to provide for the designation and establishment of oil and gas free zones and special investment areas in nigeria, establishment of the oil and gas investment and free zones authority and for related matters hb. Ever since oil was discovered in the country in 1956. Pdf oil bunkering activities in the niger delta the way forward.
Another key priority for nnpc is addressing the outstanding receivables owed to companies operating in the country. Introduction the niger delta accounts for over 80% of nigerias oil production with over 600 oil fields, 5,284 oil wells, 10 oil and gas export terminals, 275 flow stations 10 gas plants, and massive liquefied natural gas and is. What is the underlying linkage between transborder economic crime and the phenomenon of globalization. This is because nigerian state solely depend oil generated revenues for her economic survival. This report is based on fieldwork carried out in the niger delta in march and april 2008, as well as desk research and f. The impact of oil on nigerias economic policy formulation by biodun adedipe, ph. The bumper sticker dont steal, government hates competition comes to mind when one reads news like this recent one announcing the feat of our military through the joint task forces operation pulo shield in destroying 748 illegal refineries in the niger delta in four months. Royal dutch shells joint ventures account for more than 21% of. Since shell ghana, total ghana, and mobil oil sold their shares of ghana bunkering services gbs to ghana oil company limited goil years ago, the bunkering infrastructure has deteriorated, private bunkering firms say.
Amnesty, illegal bunkering, niger delta, nigeria, oil theft i. With respect to the other two dimensions of oil pipeline sabotage oil. Nigeria, which is the leading oil producer on the continent, is often cited as. Nigeria joined the organisation of petroleum exporting countries opec in 1971 and established the nigerian national petroleum company nnpc in 1977, a state owned and controlled company which is a major player in both the upstream and. Oil theft siphons the main source of the nigerian economy for private gains before taxation or crediting to the national account. However, alongside the legitimate trade in the deltas oil products, there is a lucrative and organised illicit oil trade that reportedly loses nigeria 200,000 barrels of oil every day. Abstract this paper examines the nexus between oil pipeline vandalism and national security in nigeria. Glutfield nigeria is a vendor, bunker supply supply of fuel oil, lube oil etc and marine transportation company that provides adequate and prompt service for its clients. Oil bunkering hacking into pipelines to steal crude then refining it or selling it abroad has become a major cost to nigerias treasury, which depends on oil for 80 per cent of its earnings. Nigeria joined the organisation of petroleum exporting countries opec in 1971 and established the nigerian national petroleum company nnpc in 1977, a state owned and controlled company which is. Pdf effects of illegal oil bunkering and piracy in.
Caribbean islands bunker fuel market size and share. Impact of bunkering on nigerias oil industry youtube. Nigerias illegal oil bunkerers the wider image reuters. Nigeria, one of the worlds largest oil exporters, has a coastline of approximately 853km facing the atlantic ocean. Opinion the national economic council nec last week put the amount of crude oil stolen from nigeria in the first half of 2019 at 22 million barrels. Among the questions the paper seeks to address are. Doing so would greatly increase nigerias total oil exports and reduce oil spills that cause severe environmental damage in the niger delta. This paper examines the rising cases of oil theft in the niger delta region of nigeria which has negatively impacted on the nigerian economy. Shell nigeria is the common name for royal dutch shells nigerian operations carried out through four subsidiariesprimarily shell petroleum development company of nigeria limited spdc.
Nigerias oil theft epidemic join our community although crude oil theft has long been the subject of intense media attention in nigeria, the downstream theft. Oil thefts, illegal bunkering, pipeline vandalism, niger delta. American journal of engineering research ajer 2016 w w w. Take a look for renegade complete oilfield services look forward to identifying the right oilfield services to meet your needs within the oil and gas industry list of oil and gas companies and contact details in nigeria. Various experts have estimated the volume of oil theft at between. As oil bunkering rises in nigeria, thieves say they have. Nigeria is an oilendowed state and an example of a petrodependent economy. Oil bunkering activities in the niger delta american journal of. Militant oil agitations in nigerias niger delta and the economy mr.
Navy raids oil bunkering operations sahara reporters. This coastline lies between latitude 4 o 10 to 6 o 20 n and longitude 2 o 45. An investigation into root causes of sabotage and vandalism of pipes. Oil crimes, national security, and the nigerian state. The paper examines the phenomenon of economic crime across borders and its specific character of illegal oil bunkering in nigeria visavis the countrys economic reform agenda. Pdf oil bunkering activities in the niger delta the way. Currently most cargo companies except maersk use manual bills of lading. Pdf this paper examines the impact of illegal oil bunkering and theft which has continued to threaten the survival of the nations economy. A primer on nigerias oil bunkering council on foreign. A recent study commissioned by royal dutch shell put the. Pdf transborder economic crimes, illegal oil bunkering.
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