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Oil Theft: Senate Committee Submits Report, Keeps Mum On Masterminds

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The Senate Ad-Hoc Committee set upto investigate the theft of the country’s crude oil and its negative impact on the economy, submitted its findings to plenary on Tuesday

It revealed that between January and August 2022, Nigeria lost $2billion,with consequent loss of revenue that would support the country’s fiscal deficits and budget implementation .

The report kept mum on the masterminds of the act contrary to promise to name and shame them.

It claimed that efforts in combating the menace has begun yielding results with Forcados Terminal producing 500,000 barrels per day now as against zero production in the first six months of the year .

The Senate had on April 14, 2022, constituted a 13 – member Ad – Hoc Committee on Oil Lifting , Theft and the impact on Petroleum Production and Oil Revenues under the Chairmanship of Senator Akpan Bassey who incidentally , is the Chairman, Senate Committee on Petroleum ( Upstream) .

According to the report,Bonny Terminals, is also producing 87,000 barrels of oil per day now as against zero production a couple of months ago due to activities of economic saboteurs.

Parts of the 16 – point recommendations of the Committee as adopted by the Senate are that the Nigerian National Petroleum Company Limited ( NNPCL), should stop undermining Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) from performing their functions.

According to the report,the provisions of the Petroleum Industry Act ( PIA), should be adhered to by NNPCL as regards functions of the established agencies,adding that there was need for immediate streamlining of agencies present at the terminals in line with the relevance of their PIA delineated upstream and midstream / downstream statutory functions .

It recommended that NUPRC should fast track the upgrade of the National Production Monitoring Systems ( NPMS) to enable real time monitoring of flow station and terminal activities .

It added that the agency should expedite the deployment and strict enforcement of the Advance Crude Oil Cargo Declaration solution for detection and mitigation of illegal movement of vessels to ensure adequate revenue generation and optimal crude oil production.

According to the report,the Bureau of Public Procurement should expedite all processes of procurement for NUPRC in ensuring immediate deployment of an online real-time monitoring system by the commission across all upstream oil and gas production platforms for accuracy in measuring production volume by producers.

It said NUPRC should resume full regulatory oversight of all existing crude oil terminals in Nigeria including integrated ones, crude oil pipelines, issuance of loading clearance and processing of export permits in line with section 8(d) of the PIA, as regulatory activities at crude oil terminals are interdependent and contingent.

It added that curtailing crude oil theft should be a collective responsibility through report of illegal activities and transactions to appropriate authorities by well meaning Nigerians .

The report also punctured undue interference of the Minister of State in the operations of NUPRC as shown with letters made available to it by the agency and stressed that both the Minister and NNPCL should allow PIA to function .

It added: “The PIA as signed into law by the President , must be allowed to function by all stakeholders in the sector as any amendment on it now , will send wrong signals to the international community “.

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