Oil bunkering threatens nigerias economy, environment. Oil theft and blood oil the illegal siphoning of oil off from pipelines, termed bunkering, is an enormous criminal enterprise run by multiple layers and units of operators. Crude oil theft, locally known as bunkering became a phenomenon during the years of militancy against the oil industry in the early 2000s. Understanding the armed groups of the niger delta final. Thieves hack into or blow up pipelines to steal the crude oil, then sell it on international markets or refine it locally. Nigerian ports authority npa security personnel and patrols boats within the various port areas nigerian territorial water 12nm from coast. As a consequence of damage to oil facilities and bunkering, shells oil.
Irans impending oil export boost no longer a problem. Nigerias position is that the countries where such stolen crude ends up encourage the crime, as there would be no market for the oil thieves if some countries refineries would patronize only genuine crude. Contracts out partial responsibility to global west vessels. No recoverable oil found on site, free phase oil was consumed by fire. Illegal oil bunkering is effectively nigerias most profitable private business. Feb 21, 2012 oil bunkers feb 21, 2012 oil bunkering in nigeria. As oil bunkering rises in nigeria, thieves say they have no. A large, densely populated, and highly heterogeneous. Oil being the biggest single business in nigeria, the transborder character precipitated by its illegal bunkering is not only accentuated by the logic of globalization, but it is also portending serious. Recovery of spilled volume commenced on 10th march 2011 and was completed on 23rd march 2011. Illegal oil bunkering, violence and criminal offences in. Every licensee shall file an application for the renewal of a licence at least one. Delmar petroleum company limited is an indigenous oil and gas trading company in nigeria with areas of specialization in petroleum products bunkering including storage, distribution, marketing.
Oil theft siphons the main source of the nigerian economy for private gains before taxation or crediting to the national account. The compensation of these victims has become clumsy and dark in the wake of oil bunkering, pipeline vandalism, sabotage, since in the past, oil spill was as a result of the activities of the oil. Jul 20, 20 oil is the lifeblood of nigerias economy. Crude oil was first discovered in commercial quantities in nigeria in 1956, while actual production started in 1958. Oil pipeline vandalism and nigerias national security.
Niger delta, where she has worked with nigerian governments. In addition to the violent protests, a quieter form of sabotage goes on known as oil bunkering. Pdf bunkering is the practice and business whereby duly licensed. In nigeria, oil pipeline vandalism has been perpetrated principally by criminal syndicates who are motivated by the desire to loot oil products for material aggrandizement. Garuba, david 2010, transborder economic crimes, illegal oil bunkering and economic reforms in nigeria, policy brief series 15, october, global consortium on security transformation. Proposing extension of informed policymaking richard ingwe institute of public policy and administration ippa, university of calabar, p. First is the rank and file of exmilitants who feel betrayed by their.
Stop all attempts to divide and coopt armed militants by offering contracts and appointments to leaders and instead encourage them to create and articulate a common and realistic political agenda. Press the nigerian government to institute resourcecontrol reforms and negotiate in good faith with. Post cleanup inspection was carried out on 20th april 2011. The niger delta is the most important oilproducing region in africa, with its oil providing 70 per cent of nigeria s government revenue.
The stolen crude can currently be sold at around u. Pdf this paper examines the rising cases of oil theft in the niger delta region of. This paper sets out to examine the compensation of oil spill victims in the nigerian oil industry. Illegal oil bunkering, violence and criminal offences in nigeria s territorial waters and the niger delta environs. Pdf oil bunkering activities in the niger delta the way forward. As seen in nigerias oilrich niger delta, discontent among local communities in the lake chad basin could lend support to boko haram or subsequent militant groups. Throughout the last decade or so nigeria has supplied around 810% on average of us oil imports and within a decade, as the deepwater fields are exploited and as new reserves are discovered, nigeria could be producing annually far in excess of venezuela or kuwait. 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. Available data shows that since 1989, shell petroleum development company spdc, one of the giant oil companies in the nigerdelta region has recorded an average of 221 oil spills peryear involving a total of 7,350 barrels spills annually spdc, 2000. The niger delta is a host to nigerias proved oil and gas reserves. The report, while acknowledging improvements to shells jiv process since 2011, identified serious flaws that. Oil bunkering threatens nigerias economy, environment the.
Disputes over government resources and control of crude oil, including the stolen oil, drive the violence that has engulfed parts of nigerias oilproducing niger delta. The discovery of oil in commercial quantity in nigeria in 1956 ushered in a period characterized by endemic crises of oil rents management and corporate insecurity. Pdf the upsurge of oil theft and illegal bunkering in the niger. This organized crime is often aided and ablated by the state agents, which gives it a. Among the questions the paper seeks to address are. In nigeria the theft of oil is also known as illegal bunkering, regardless of whether it takes place on land or at sea.
The term appears to be a nigerian colloquialism which has nothing to do with actual bunkering which generally refers to supplying vessels with fuel. Shimmering crude oil fills its hull, almost indistinguishable from the polluted water in the creek. Nigerias illegal oil bunkerers the wider image reuters. Nigerias delta unrest crisis group africa report n115, 3 august 2006 page iii to the u. Oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of exploration. In areas like nigerias niger delta for example, decades of oil production7 have virtually destroyed the environment, many peoples livelihoods and their hopes for a better future. The loss amounts to roughly seven percent of nigerias total output. Since the company that would become royal dutch shell plc discovered the first commercially viable well in 1956, oil earnings grew to account for some.
African piracy moves from east to west home worldaware. Spills data for january 2011 all download files are in pdf format and open in a new window. Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream producing 5,100 bpd. Disputes over government resources and control of crude oil, including the stolen oil, drive the violence that has engulfed parts of nigeria s oil producing niger delta. However, in the local printed press, oil theft, kidnapping and hostagetaking, bank fraud, bank robbery, and car theft constantly make headlines, in addition to the others listed above. Nigeria is africas most populous country and currently its largest oil producer. Former militant enterprises have effectively purchased the influence. It is a profitable criminal industry that cost the. In this study, the history of bunker oil and the various types of bunkers were examined. Nigerian army uncovers unprecedented oil bunkering site. After discussing the importance of pipeline security to the nigerian petroleum sector, it.
This organized crime is often aided and ablated by the state agents, which gives it a nigeria as oil bunkering, which is the act of. Blood oil in the niger delta united states institute of peace. Jun 04, 2012 oil theft siphons the main source of the nigerian economy for private gains before taxation or crediting to the national account. The nigerian army says it has uncovered a massive illegal oil bunkering site located one kilometre along the nigerian ports authority npa in port harcourt. When theyre done, the pipeline spews oil for miles around. The discovery was made by shellbp, at the time the sole concessionaire. Oil production in nigeria is measured at export terminals rather than wellheads, and, as such, the system fails to account for unregistered, illegally produced, or stolen oil at an official cost of usd 20 billion per year. Jan 16, 20 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. 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. Site is continually being impacted by crude oil bunkering and illegal refinery activities. The nda, which is demanding a larger share of the countrys oil wealth, has been so successful in its brief campaign that at one point it had reduced nigerias daily oil production by nearly 50 percent. Oil bunkering activities in the niger delta american journal of. Bunker fuels include but not limited to fuel oils, automotive gas oil. 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.
Oil spillages and gas flaring are common occurrences in nigerias oil industry. After discussing the importance of pipeline security to the nigerian petroleum sector, it discusses challenges such as the high rate of pipeline vandalism. In the mid2000s, oil theft, and the vast revenue it produces, allowed for a conflict to. In a uturn on comments he made just days ago, nigeria s junior oil minister friday told media at the december 4 organization of petroleum exporting countries opec meeting that renewed oil exports from iran would not exacerbate global oversupply. The collapse of oil hit nigeria hard nigerias federal government is highly dependent on oil supply disruptions hit nigeria at the worst possible time volatility of oil has unleashed a chain of negative economic consequences 7. Oil bunkering undermining nigerian economy vanguard news. Unfortunately, the situation nigeria finds herself in today is no different from liberia and sierra. Sep 22, 2014 crude oil theft, locally known as bunkering became a phenomenon during the years of militancy against the oil industry in the early 2000s. Aug 04, 2015 oil theft, or bunkering, occurs throughout the niger delta, where pipelines crisscross the region.
Oil theft, or bunkering, occurs throughout the niger delta, where pipelines crisscross the region. Pdf transborder economic crimes, illegal oil bunkering. A primer on nigerias oil bunkering council on foreign. Oil crimes, national security, and the nigerian state. This article seeks to explain the recent surge in oil theft in nigeria from the.
In a uturn on comments he made just days ago, nigerias junior oil minister friday told media at the december 4 organization of petroleum exporting countries opec meeting that renewed oil exports from iran would not exacerbate global oversupply. As oil bunkering rises in nigeria, thieves say they have. Oil export revenue accounts for 70 percent of nigerias total government revenue and 95. Various experts have estimated the volume of oil theft at between. Military involvement in oil theft in the niger delta. History of the nigerian petroleum industry oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of exploration. Investigations into the incident continue, as this area has experienced numerous attacks by criminal gangs.
No company shall be cleared by the dpr to load without remitting the previous loading documents. Navy raids oil bunkering operations sahara reporters. From 1999, democratic renewal, backed by excess oil rents returns, made the popular democratic control of oil wealth critical. Policy brief series natural resource governance institute. This is not the first movement to make such demands of the nigerian government. Ending unrest in the niger delta crisis group africa report n5, 5 december 2007 page ii 2. The report, while acknowledging improvements to shells jiv. 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 governance and development in africas gulf of guinea. Nigeria had, of course, become an archetypal oil nation. Pdf effects of illegal oil bunkering and piracy in. Actors, crude oil, niger delta, nigerian economy, oil theft.
Instead, emmanuel kachikwu now thinks the added iranian output will accommodated by declining u. Likewise in iboland, the eastern region marketing board was linked to the african continental bank. Clean up of residual impacted areas completed on 28th january 2011. Here and there on the banks, people coated in oil wade through greasy mud in patches of landscape blackened and stripped of the thick vegetation that makes nigerias oilproducing. Oil exploration and security challenges in the nigerdelta. The impact of organised crime on governance in west africa.