Multinationals aiding oil theft in Nigeria – Naval chief

Chief of Naval Staff, Vice Admiral Usman Jibrin

The Chief of Naval Staff, Vice Admiral Usman Jibrin, has accused International Oil Companies operating in Nigeria of complicity in the theft of the nation’s crude oil.

He also said that the Navy would not pretend about the involvement of the oil companies in crude oil theft.

He spoke at a meeting of the top leadership of the Navy and the Managing Directors/Chief Executive Officers of the IOCs in Abuja on Wednesday.

Jibrin said it took him seven and a half months since his appointment to call the first meeting between the Navy and the firms to discuss serious issues of concern in the oil sector, which included oil theft and illegal bunkering.

The Navy boss also explained that he made it clear that the CEOs should attend the meeting in person without representation because of the need to discuss the issues, which he described as worrisome, but regretted that the request was ignored.

Jibrin said some of the oil firms had deliberately left the manifolds of their oil wells open for years without conscious efforts to close them in spite of the fact that only experts had the capacity to reopen closed manifolds.

He warned that the Navy would ensure the arrest of executives of the IOCs who decided to leave the manifolds of their wells open for years without closing them.

He also threatened to deal with any naval officer found to have been involved in the criminal theft of the nation’s oil resources in accordance with the laws guiding the Armed Forces of Nigeria.

The CNS warned that the Navy would go beyond accusing the firms to mentioning names of those suspected to be involved in the theft of the nation’s resources.

Jibrin wondered why the oil chiefs had not given the expected cooperation in the bid to seek a concerted solution to the raging issue of oil theft.

He said the time had come for the oil firms and the security agencies to seek solutions to the issue of oil theft in the country.

Jibrin said, “This is the first meeting I am having with the oil firms to discuss the issue of oil theft and illegal bunkering. It took us seven and half months to call this meeting, and specifically, we said we don’t want representation.

“We have a serious challenge and we need the commitment of the CEOs to discuss oil theft. It has become worrisome that we have not been able to check the issue of oil wells. It has got to a point that instead of pointing accusing fingers, we will mention names, including those of the major stakeholders.

“We cannot pretend that the oil companies do not have a hand in some of these illegalities; pretending is to allow it to continue. We will not pretend. I can start by citing some examples; some companies have left their oil wells opened for years and have done nothing to close them up. Because of the technical nature of the manifolds, once they are closed, only the experts can open them. Why have they been left open for years?”

He added, “I have pictures here. Why is it that all of us cannot sit down at a round table and provide a solution? Why are we denting the image of this country? It has come to a point that we must meet, discuss and provide solutions to issues pertaining to oil theft.

“Government is worried and those of us who are agents of the government are also worried. On my part, if any of my personnel is involved, they will be dealt with adequately in accordance with the existing law of the Armed Forces.

“I have decided that I will take some steps that if the manifolds are left open for years and our attention is drawn to the need for it to be closed, we will look for and start arresting officials of the oil companies who own that and left them without taking appropriate action.”

He said that the government was taking the issue of oil theft seriously because of the loss of revenue and the inimical effects of oil theft on the environment.

Responding on behalf of the firms, the Chairman, Oil Producer Trading Services, Mr. Ayobami Olubiyi, said that the companies had also taken steps to curb the threat of oil theft.

He recalled that the Federal Government set up an ad-hoc committee on the subject, with some funds released to address the pressing issues some months ago.

He said the men of the Nigerian Navy were involved in securing the operations of the oil firm in the Niger Delta and Lagos.

Olubiyi said, “It is not just the Nigerian Navy but all who have been supporting our business. And I also want to assure you that concerning oil theft, we have taken a lot of steps. That is why in the last couple of months, an ad-hoc committee was set up by the Federal Government to look into this, and I am aware that some money had been released to help curtail this situation.

“We will continue to advocate a true platform; and as you are aware, we have a number of your officers and men who have been supporting our operations in the Delta, including Lagos. They have been very professional in the way and manner they carry out this operation; and together with the CNS, I am sure we will all be able to work to ensure that we mitigate this very unfortunate situation in our country today.”