Fidelity bank card banner Emerald Energy Institute Camano banner

The only way to stop oil theft, pipeline vandalism —NNPC chief briefs Confab C’ttee

By News Express on 02/05/2014

Gmail icon

Views: 5,488


The Nigerian National Petroleum Corporation (NNPC) yesterday explained why the crude oil theft and pipeline vandalism have been impossible to stop and also identified the only way the war against the twin evil could be won.

Appearing before the National Conference Committee on Power during its rescheduled meeting, NNPC’s Head of Strategy Planning, Mr. Jimoh Okon, expressed concern over the activities of itinerant crude oil refiners who degrade the environment. He pointed out that there was no difference between stolen and legitimate crude, hinting that crude oil traders are a veritable link between oil thieves and legitimate businessmen.

Stolen crude, according to him, goes through the creeks and such activities take place at night with the aid of small vessels that transfer crude into large ships anchored on international waters.

Okon lamented that the issue cannot be tackled in isolation (by Nigeria alone) because of its international dimension, and therefore called for international collaborative efforts that may involve the use of helicopters and gunboats on international waters.

He, however, offered that to stem the twin evil of pipeline vandalism and crude oil theft, a dedicated pipeline protection unit as obtained in Russia must be in place.

The NNPC chieftain said there are six main creeks in which barges operate and suggested the procurement of six coastal vessels to effectively police those creeks. He added that the recent meeting between President Goodluck Jonathan and the US Assistant Secretary of Defence was part of government’s efforts to curtail crude oil theft.

Okon insisted that Nigeria was suffering from energy crisis because the country exports primary energy sources and imports processed Premium Motor Spirit (PMS).

For Nigeria to reach the level of South Africa, he said the nation needed to generate 50,000 megawatts as opposed to the current 4,000 megawatts.

The Gas Master-plan by the federal government suffers a set back because international oil companies did not see Nigeria as a viable market, he said.

He spoke at length on the nation’s over reliance on its natural resources as income, especially oil and gas. Emphasis, according to him, should be more on the utilisation of oil and gas at home as these constitute about 15 per cent of the nation’s GDP, even though it constitutes about 85 per cent of government revenue.

While suggesting ways that government can generate revenue, he warned of a situation where there is complete reliance on a product whose price cannot be determined or controlled locally.

He suggested the removal of subsidy on oil saying it was a two trillion naira drain on the nation’s resources. He also suggested that the production of 300,000 barrel of crude oil per day be differed; and advocated the payment of environmental sub-charge, inclusion of pipeline tax of about six naira into the cost of PMS, as well as the implementation of the five per cent road maintenance charge.

Okon stressed the need for the use of energy to create wealth for the people rather than as a means of rent collection.

He doused fears about the possible non availability of kerosene in an event of subsidy removal and expressed firm belief that the product will be available.

While indicating that the unit cost of producing a barrel of crude oil was approaching 39 dollars, Okon said Nigeria currently exports 22 million tons of gas per annum from six trains. International gas demand, he said, stands at 992 million tons and Nigeria is the fifth gas exporting country with about 7.5 per cent of the international market.

Source News Express

Posted 02/05/2014 2:07:19 PM

 

 

CLASSIFIED ADS

 

You may also like...
Buhari congratulates Ouattara on re-election as Ivorien President...

Congresses: Rivers APC fails to get stay of...

BP suffers $5.2bn annual loss as oil price...

Coup d’etat is possible anywhere

Obi takes over as NIMASA Acting DG

Property destroyed, 2 injured in war between Obiano’s...

Enugu has enormous value for education — Speaker...

Groups call for caution on ongoing probe of...

Breaking: Chinese textile smugglers nabbed in Kano to...

Super Eagles goalkeeper Carl Ikeme diagnosed with blood...

Senate calls for serious efforts to end Rivers’...

Is Abati the new poster boy? By Tony...

 

Latest News How IGP Mohammed Adamu hijacked recruitment of Police Constables — PSC Commissioner Presidential poll: Tribunal verdict can’t stand — PDP governors •Urges Supreme Court to do the right thing Why we’ll not congratulate Buhari on tribunal victory: Ohanaeze Ndigbo Drunken policeman stabs nine in club Presidential Poll: Buhari told a lie of a fundamental nature — PDP Campaign Spokesman Buhari vs Atiku: A different and broader perspective to the PEPT judgement $9.6bn judgment: Why we’re negotiating with P&ID — FG 2021: PDP vows to take over Anambra Okowa mourns Joe Utomi, declares him ‘a perfect gentleman-politician who distinguished himself in the service of his people’ Fidelity Bank donates laboratory to correctional home •Commended by Lagos Govt. for CSR projects Neither amalgamation nor colonisation is our problem, By Chukwudi Ohiri Bishop Kukah to speak on security, economy at GOCOP annual conference

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (540,179 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (442,803 views) Shameless Genevieve Nnaji exposes breasts in public (389,074 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (326,531 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (294,489 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (253,565 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (249,609 views) 10 cars more expensive than Jets (238,217 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (231,364 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (217,356 views) Lagos plane crash: Journalist releases victims’ names (195,748 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (193,360 views)

 

CBN milk production

CBN banner advert

UBA Wise Savers Promo

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (102) Business & Economy (4,443) Business Verdict (80) Columnists (1,109) Complaints & Requests (96) Enterprise & Opportunities (215) Entertainment (664) Features (811) Global Business Monitor (442) ICT Monitor (63) International (3,952) Interview (203) Live Commentary (30) Love Matters (170) Maggie's Blog (410) News (51,343) Opinion (1,358) Pidgin (17) Politics (11,444) Religion (1,102) Sports (2,166) Stock Watch (39) AMA & Al Jazeera Global Update

 

 

 

 

 

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera