EFCC Now to Prosecute Oil Thieves
Nigeria loses 55,000 bpd to bunkering
By Mike Oduniyi
Following the resurgence of crude oil theft, the Federal Government has transfered the prosecution of suspects arrested for the offence from the police to the Economic and Financial Crimes Commission (EFCC).
Oil theft, perpetrated through illegal bunkering activities in the creeks of the Niger Delta, has led to the loss of 55,000 barrels per day (bpd) of the nation's crude production, according to latest official figures.
THISDAY gathered at the weekend that in line with the new government directive, 13 of the 47 suspected oil thieves who were arrested recently in a fresh onslaught by the Nigerian Navy personnel, had been handed over to the EFCC.
Sources said the transfer of the suspects' prosecution to the Commission came after the Presidency expressed dissatisfaction with police handling of the cases of illegal bunkering, which allegedly fuelled the resurgence in the criminal act.
It was gathered that fresh raids on the thieves by personnel drawn from the Nigeria Navy (NNS) Pathfinder, in Rivers State, led to the arrest of the 47 suspects along with 18 barges each weighing about 1,000 metric tons used in siphoning the crude, five vessels, eight tankers and four canoes each carrying 400 drums filled with crude oil.
Officials disclosed that the syndicates, which specialise in breaking into oil manifolds and risers in the night to perpetuate the act, were more prominent in oil production facilities in Cawthorne Channel, Soku, Alakiri, Ekulama and Som-breiro creeks, all belonging to Shell Petroleum Development Company.
The Commander of the NNS Pathfinder, Captain Goddy Ohuabunwa, told THISDAY that the unit was now doing "more of static surveillance and monitoring to improve patrol on the water ways."
According to him, there are about 3,000 creeks the Navy needed to patrol to check the menace of illegal oil bunkering. He added that the thieves were getting more daring and heavily armed.
Industry estimates put oil losses due to illegal bunkering at 200,000 barrels per day (bpd) last year. Shell alone lost as much as 100,000 bpd to the well-organised syndicated crime.
The business of oil theft, according to industry officials, has become more lucrative, not less due to the relative ease it is carried out by a well organised, but powerful syndicate of armed gangs.
Officials said the bunkerers sold the stolen crude to ocean going vessels at between $5 and $8 per barrel, compared to the current market price of about $40 per barrel or even Nigeria's official selling price of $25 per barrel.
Shell officials said while the rate of losses dropped to some 25,000 bpd early this year, but that it had picked up again to 55,000 bpd. In monetary terms, that translates to $1.98 million per day.
Sources said some of the suspects arrested last year, were left off the hook as the police claimed the offence was bailable.
"We are seeing an upward trend, so it is looking as if there is a relaxation of whatever measures were taken to arrest it in the past," said one industry official.
The official added that every week, oil producing companies under the umbrella of the Oil Producer Trade Section of the Lagos Chamber of Commerce and Industry (LCCI), wrote the President on the development and the quantity being lost.
It was gathered that the Senate Committee on Defence also visited some of the affected oil wells two weeks ago to assess the situation.
Shell Managing Director, Mr. Chris Finlayson, who confirmed the increase in quantity of crude lost to thieves said the real worry for oil producers was that money made from sales of the stolen crude, were now being re-cycled to purchase arms and unleash violence in the Niger Delta.
"Crude oil bunkering is now a big business, those involved make about $1 billion yearly. The trend may continue to rise until government successfully prosecute those caught," said Finlayson.
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