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