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Nigeria’s state-owned oil firm, NNPC Ltd, has announced that an intercepted 800,000-litre vessel carrying suspected stolen crude oil off the coast of Cameroon will be destroyed as a deterrent to oil theft.
Chief Corporate Communications Officer, NNPCL Garba Muhammad, said in a statement on Monday, that the oil was stolen from a well in south western Ondo state.
The vessel named MT Tura II with IMO number: 6620462 owned by Holab Maritime Services Limited, a locally registered Nigerian company, was intercepted on July 7, by Tantita Security Services, a private security outfit owned by former Niger-Delta militant Government Ekpemupolo alias Tompolo.
According to the NNPCL spokesperson, the suspicious vessel did not possess valid documentation for the oil cargo when it was apprehended.
“The illegal trade of stolen crude oil not only inflicts significant economic losses on Nigeria and legitimate stakeholders in the oil industry, but also perpetuates a cycle of corruption, environmental devastation, and social instability.
“Destroying vessels involved in transporting stolen crude oil is of paramount importance as a strong deterrent,” Muhammad said.
This comes at a time when Nigeria has invested over N11.35 trillion ($25 billion) in the past decade to revive its three moribund refineries, which are currently operating at less than 30 per cent capacity, resulting in a shortage of locally refined petroleum products.
While the move aims to deter oil theft and enforce stronger penalties, it could potentially exacerbate the challenges faced by the Nigerian energy sector.
The low production capacity, coupled with the removal of fuel subsidies, has led to a significant increase in petrol prices, with rates soaring as high as N557 ($1.21) per litre, up from N189.
The federal government had initially announced that the Port Harcourt Refinery would resume operations by the end of the first quarter of 2023, after failing to meet the initial December 2022 deadline.
However, further delays have occurred and as the third quarter begins, the refinery is yet to commence operations. Some modular refineries, such as the Waltersmith and Duport refineries, where NNPC holds a 30 per cent stake, are also scheduled to start operations this year.
The operational success of these refineries, alongside the Dangote refinery’s 650,000-barrel-per-day capacity, is expected to significantly reduce Nigeria’s dependence on imported petroleum products, stabilise petrol prices and ensure energy security for Nigeria.
But theft from pipelines and wells in the Niger Delta has remained a significant challenge to Nigeria’s oil output in recent years and is one of the biggest obstacles facing President Bola Tinubu.
According to NNPCL, preliminary investigations revealed that the recently intercepted vessel had been operating in stealth mode for the past 12 years, with its last reported location being Tin Can Port in July 2011.
The company said it had escalated the details of the arrest and investigation outcomes to the appropriate government authorities and assured Nigerians that the fight against crude oil theft would continue until it is completely eradicated.
Despite ongoing efforts to combat oil theft, the interception of the vessel underscores the persistent challenges Nigeria faces in addressing this issue.
Watch Video:
PRESS STATEMENT
PRIVATE SECURITY CONTRACTORS INTERCEPT 800,000 LITRE CAPACITY VESSEL WITH STOLEN CRUDE OIL
Following the receipt of credible intelligence, a Private Security Contractor engaged by NNPC Ltd., Messrs. Tantita Security Services, intercepted a suspicious Vessel with… pic.twitter.com/eWGD7XY0au
— NNPC Limited (@nnpclimited) July 10, 2023