As oil bunkering rises in nigeria, thieves say they have. Nigeria, one of the worlds largest oil exporters, has a coastline of approximately 853km facing the atlantic ocean. Pdf oil bunkering activities in the niger delta the way forward. List and directories of oil and gas companies in nigeria. Yet nigeria is the most afflicted by maritime threats pervading the gg region. An investigation into root causes of sabotage and vandalism of pipes.
So, while the kingpins indulge in organised oil theft via pipeline vandalism oil bunkering often in collusion with elements of public security. Government should establish free trade zone ftz and allow minirefineries. The impact of oil on nigerias economic policy formulation by biodun adedipe, ph. Oil bunkering threatens nigerias economy, environment. 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. The upsurge of oil theft in the niger delta region of nigeria in recent times is alarming. Under nigerian laws, illegal oil bunkering oil theft and pipeline vandalization are federal crimes. Culture and the amnesty program in the niger delta region of nigeria dr. Pdf upsurge of oil theft and illegal bunkering in the. Pdf oil bunkering activities in the niger delta the way. 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.
The niger delta is the most important oil producing region in africa, with its oil providing 70 per cent of nigeria s government revenue. Pdf effects of illegal oil bunkering and piracy in. Oil theft, illegal bunkering and pipeline vandalism iiard. 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.
Among the questions the paper seeks to address are. Military involvement in oil theft in the niger delta. Fortyeightyearold ebiowei drags a hose used to siphon crude oil at an illegal refinery site in nigerias oilrich state of bayelsa. With respect to the other two dimensions of oil pipeline sabotage oil. Since the company that would become royal dutch shell plc discovered the first commercially viable well in.
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. With headquarters in apapa, glutfield nigeria provides superior vendor and bunkering services for vessels, serving both the domestic and international ships and companies. The paradox of the black gold 341 because of the con. Oil thefts, illegal bunkering, pipeline vandalism, niger delta. 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. American journal of engineering research ajer 2016 w w w. Pdf bunkering is the practice and business whereby duly licensed.
Pdf piracy and maritime security in the gulf of guinea. Ap house, 5456 broad street, marina, lagos island, lagos. Oil crimes, national security, and the nigerian state. Policy brief series natural resource governance institute. 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. Nigerias illegal oil bunkerers the wider image reuters. Nigerian army uncovers unprecedented oil bunkering site. 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. Oil pipeline vandalism and nigerias national security. This report is based on fieldwork carried out in the niger delta in march and april 2008, as well as desk research and f. Royal dutch shells joint ventures account for more than 21% of.
In many countries of the world, the free market economy plays important role while in. 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. However, oil bunkering and oil theft is ingeniously the most lucrative private business in the nigerian petroleum industries in recent times, even though, the. Impact of bunkering on nigerias oil industry youtube. Posts about oil bunkering in nigeria written by nzesylva.
It is the countrys major export, fetching millions of petrodollars to the country each day. A recent study commissioned by royal dutch shell put the. 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. The second part of the article will focus on the public regulation of the oil and gas industry in nigeria. Oil bunkering undermining nigerian economy vanguard news. 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. Sadly, that same resource is being savagely stolen in copious quantities on daily basis adeboboye, 20. 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. 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. Ever since oil was discovered in the country in 1956. 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.
The legislative framework regulating the nigerian oil industry, including the constitution of nigeria 1999, land. A primer on nigerias oil bunkering council on foreign. American journal of engineering research ajer 2016. This coastline lies between latitude 4 o 10 to 6 o 20 n and longitude 2 o 45. Blood oil in the niger delta united states institute of peace.
Amnesty, illegal bunkering, niger delta, nigeria, oil theft i. Militant oil agitations in nigerias niger delta and the economy mr. Recent incidents of oil pipeline sabotage and its implications hold serious threats for national security in nigeria. Abstract this paper examines the nexus between oil pipeline vandalism and national security in nigeria. In this paper, therefore, we will argue that, oil induced militant agitations have had adverse. What is the underlying linkage between transborder economic crime and the phenomenon of globalization. This paper examines the rising cases of oil theft in the niger delta region of nigeria which has negatively impacted on the nigerian economy.
The niger delta is a host to nigerias proved oil and gas reserves. Oil theft in nigeria is considered to be the illegal appropriation of crude or refined oil products. This is because nigerian state solely depend oil generated revenues for her economic survival. Ghanas bunkering industry is suffering from a lack of investment, the news site ghana web reports. Caribbean islands bunker fuel market size and share. 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. Nigeria, which is the leading oil producer on the continent, is often cited as. The nigerian state and oil theft in the niger delta region of nigeria pdf. In the country, pipeline vandalization is usually regarded as an act of sabotage. 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. Oil bunkering activities in the niger delta american journal of.
The upsurge of oil theft and illegal bunkering in the. 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. 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. Effects of illegal oil bunkering and piracy in nigeria. Please refer to imos manual on oil pollution, section 1 prevention as amended, and the ics and ocimf ship to ship. Pdf this paper examines the impact of illegal oil bunkering and theft which has continued to threaten the. Various experts have estimated the volume of oil theft at between. 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.
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. 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. 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. Nigeria is an oilendowed state and an example of a petrodependent economy. Navy raids oil bunkering operations sahara reporters. Niger delta, where she has worked with nigerian governments. Pdf this paper examines the impact of illegal oil bunkering and theft which has continued to threaten the survival of the nations economy. Adedipe associates limited, victoria island, lagos, nigeria. Another key priority for nnpc is addressing the outstanding receivables owed to companies operating in the country. 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 theft siphons the main source of the nigerian economy for private gains before taxation or crediting to the national account. Doing so would greatly increase nigerias total oil exports and reduce oil spills that cause severe environmental damage in the niger delta. Currently most cargo companies except maersk use manual bills of lading.
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