Oil Pipeline in Nigeria

Nigerian oil firm, AITEO, has denied being behind the June 1 protest by hundreds of Niger Delta youth who accused the Commander of Operation Delta Safe, Rear Admiral Apochi Suleiman, and his troops of engaging in illegal oil bunkering.

The youth had organized a World Press Conference in Abuja during which they alleged that the JTF commander and his team were complicit in the growing menace of illegal bunkering and oil theft in the Niger Delta.

They then called for the immediate removal of the rear admiral from office.

But reacting to the development on Monday, AITEO dismissed suggestions that it had a connection with the protest and the call by the youth.

“For the avoidance of any doubt whatsoever, any attempt by the embattled Admiral Suleiman to suggest our involvement in the activities of those who undertook the event or indeed any other related activity is a distraction designed to fail,” the company said in a statement emailed to PREMIUM TIMES.

“It does not, in any way, detract from the weight of allegations with which Admiral Suleiman has been publicly confronted nor the overwhelming need for him to engage in a process that will allow him to deal with the substantive issues that flow from that event."

“Aiteo did not “mastermind” any of the protests by Niger Delta communities. As a socially responsible organization, we understand that the community bears the brunt of illegal bunkering and refining activities. 

“Indigenes of these communities remain morally and legally free to exercise their constitutionally guaranteed civil rights to peacefully protest against ills in their community till their voices are heard and desired remedial or corrective actions are taken."

“It is intriguing that the Admiral, rather than address the allegations directed at him, opted, unwisely to allege that Mr. Peters supposedly supported the protest because he is ‘trying to hide something’. By these utterances, he personalizes and trivializes, a matter of grave national concern in an incomprehensibly absurd manner.”

READ FULL STATEMENT BY AITEO BELOW.

AITEO NOT BEHIND NIGER DELTA PROTEST ON JTF’S INVOLVEMENT IN ILLEGAL OIL BUNKERING

We have read with consternation, comments attributed to the embattled Commander of Operation Delta Safe, Rear Admiral Apochi Suleiman on or about June 1,2018, in which, ostensibly in defence to serious allegations levied against him, he unfoundedly suggests that ourselves and our Chief Executive Benedict Peters are somewhat responsible for the publicly aired complaints about actions and outcomes arising from his work at the JTF. To put the factual matrix in perspective, it appears that on June 1, 2018, hundreds of youths connected to the Niger Delta region organized a World Press Conference at Abuja within which one of the central themes was to draw attention to the activities of Rear Admiral Apochi Suleiman in his role as the JTF Supremo. Allegations were made against him, accusing him of complicity in the growing menace of illegal bunkering and oil thefts and calling for his immediate removal from office.

For the avoidance of any doubt whatsoever, any attempt by the embattled Admiral Suleiman to suggest our involvement in the activities of those who undertook the event or indeed any other related activity is a distraction designed to fail. It does not, in any way, detract from the weight of allegations with which Admiral Suleiman has been publicly confronted nor the overwhelming need for him to engage in a process that will allow him to deal with the substantive issues that flow from that event. Admiral Suleiman’s attempt at diverting attention from himself represents an ill-conceived, reckless and ineffectual response aimed at fabricating a distant alibi to aerate a degenerating sore of a festering personal wound. Clearly, the Admiral misguidedly considers that there is some form of wrongdoing around genuine agitation by a people to get protection for their land, property, and assets from the vile criminality that oil theft has become. For one who professes to lead a security entity whose principal objective is to engender community safety and protection, this disposition suggests abject insensitivity and a total lack of responsibility, issues presumably at the top of the list of those seeking a change to JTF’s leadership.

Aiteo has enormous responsibilities in the oil industry requiring focused intensity and attention in the execution of our quite considerable commercial obligations. With a daily production in the region of 90,000kobp, the NNPC/Aiteo JV is now directly responsible for producing 5% of the country’s daily Oil production. In doing so, the group employs over several hundred direct staff and thousands of others indirectly through contractors and service suppliers. This sense of responsibility is the bedrock on which our commercial and other activities are founded. Sadly, these oil thefts have meant that we are one of the biggest victims of oil theft in the country.

As the opportunity regretfully presents, we consider it apt to clarify a number of “matters arising” from the Admiral’s unfortunate comments:

1. The Admiral referred to the Nembe Creek Trunk Line (NCTL) as the property of Benedict Peters. This is a poor, ill-informed and disappointing description of the ownership interests in an extremely valuable asset which the JTF, under his leadership, professes to support. We need hardly remind him, a very senior Naval officer, that the NCTL is actually more the property of the Federal Republic of Nigeria and we, as operating partners, holding a minority interest. The NCTL is an asset owned by the NNPC/Aiteo Joint Venture in which Aiteo owns 45% and the Nigerian Government owns 55%. How then can the Rear Admiral reasonably suggest that the pipeline is the property of one individual? There are several other oil majors whose crude is injected and transported by the NCTL, including Belema Oil Producing Limited, Eroton Exploration and Production Company, Newcross Petroleum Limited, and Shell Petroleum Development Company (SPDC). Shutdown of such a strategic public infrastructure due to activities from illegal bunkering has a staggering effect on the commercial fortunes of these companies and a significant impact on the Nigerian economy from the ensuing loss of revenue for government.

2. As a result of recurrent thefts along the NCTL pipeline route resulting in significant pressure reductions on the trunk line, theft points identification as well as illegal refineries, and corroborated by several Joint Investigative visits constituted by various regulatory bodies and the applicable host community, Nigeria has experienced loss of production and revenue that should have accrued to the country. In Dec 2016 alone, 45.46% of the total net crude injected into the NCTL was lost on this basis which implies that the country lost revenues that could have been accumulated in the country’s treasury from crude sales.

3. Third party interference with the line has often resulted in oil leaks which ultimately culminate in shutting down the NCTL to undertake emergency repairs. This in itself has resulted in the NCTL being shut down for about 145 days and an approximate deferment of 50.386 million barrels of Crude Oil (Net) for the 6 injectors into the NCTL since Aiteo took over the operatorship of the Trunkline in September 2015!

4. As recently as May 1, 2018 there were a total of 24 illegal bunkering points identified along the NCTL. Aiteo has successfully repaired 9 of these illegal bunkering points during May 2018 at a huge cost to the company. These illegal bunkering points also contribute to the huge losses on the volumes injected across the NCTL by the six OMLs and the volumes actually received at Bonny Terminal.

5. Due to the continued vandalisation of the NCTL and resulting oil theft, Aiteo has written to the Federal Government, through the Chief of Army Staff, General TY Buratai on two occasions (April 17 and 23, 2018), requesting the involvement of the Armed Forces in reinforcing existing security arrangements to the pipeline as the incessant security breaches were resulting in losses amounting to billions of Naira for the country. We have made similar efforts to various other arms of the security apparatus of the country.

6. Aiteo is very concerned, not just about the effect of these disruptions on its bottom-line, but the health and livelihood of people living in these areas. This tragic trajectory is not only condemnable, but inimical to human existence, in the long term. It appears that this is a situation that is lost on the Admiral.

7. It is intriguing that the Admiral, rather than address the allegations directed at him, opted, unwisely to allege that Mr Peters supposedly supported the protest because he is ‘trying to hide something’. By these utterances, he personalizes and trivializes, a matter of grave national concern in an incomprehensibly absurd manner. Aiteo and others with a proprietary interest in the pipeline are the hitherto unmitigated victims. As we have indicated, we have pressed relentlessly for the involvement of all arms of the security apparatus of the country to find an enduring solution to the problem, hardly the action of one with “something to hide”!

8 In our view, instead of seeking the location of “shadows”, the Admiral anxiously needs to address the issues that are critical to eking out a long-term solution to this pervading menace. Some of these issues are captured in recurring questions that may even have been articulated by those communities complaining about the JTF’s role as follows:

(a) Why has large-scale illegal oil bunkering and refining assumed unprecedented dimensions in recent times?

(b) Is it correct that the security forces are now offering protection/escort services to those allegedly responsible for oil thefts?

(c) How is it that vessel movement of the oil thieves occurs unnoticed in the region despite heightened activity in large-scale illegal bunkering.?

10.Nigeria cannot afford to remain passive as our sovereign wealth is being aggressively pilfered, aided by indifference on the part of relevant stakeholders. These activities are highly injurious to the economy of a country vacillating between recession and the fringes of economic stability. As a major indigenous producer, we identify with issues about which the communities rightly complain. Although – and again we make this abundantly clear – we have NOT instigated them to participate in any protest, we believe the object of their complaint about the persistence of illegal bunkering remains germane. All hands must be on deck to diminish and extinguish the theft of oil across the NCTL and other such national facilities and its attendant implications.

Aiteo did not “mastermind” any of the protests by Niger Delta communities. As a socially responsible organization, we understand that the community bears the brunt of illegal bunkering and refining activities. Indigenes of these communities remain morally and legally free to exercise their constitutionally guaranteed civic rights to peacefully protest against ills in their community till their voices are heard and desired remedial or corrective actions are taken. 

Aiteo utilizes this opportunity to reiterate its long-standing commitment to due process and international best practices in the discharge of every aspect of its statutory mandate

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