…Union stages protests in Abuja, Warri, Kaduna, P’Harcourt
Protesting members of the Petroleum and Natural Gas Senior Staff Association of Nigeria on Thursday threatened to shut down oil production in Nigeria for 30 days if the Federal Government fails to curb the lingering massive oil theft in the Niger Delta.
Members of the union staged protests in various parts of
Nigeria including Abuja, Warri in Delta State, Kaduna and Port Harcourt in
Rivers State. Findings by our correspondent showed that should the workers
implement their threat, Nigeria might lose about N1.37trn from the
non-production and sale of crude oil, a major foreign exchange revenue earner
for the country.
Speaking at the sensitisation rally that was held at the
Delta State Governor’s Office Annexe in Warri, the PENGASSAN Zonal Chairman,
Prince Audu Osihiokhamele, noted with concern that, “the big men doing the
business of crude oil theft are in government.”
He added, “They say they load vessels, but we don’t see any.
Is it a needle?” He then declared that failure by the authorities to find
lasting solutions to the menace would push PENGASSAN into taking more drastic
actions. “We will shut down the country for 30 days until we all come to the
round table to unravel the mysteries surrounding the thefts,” Osihiokhamele
stated.
He added, “PENGASSAN will resort to shutting down production
for 30 days by withdrawing members, both onshore and offshore, wherever they
are producing crude, should the government fail to hearken to this warning.” An
analysis by The PUNCH showed that by shutting down oil production for 30 days,
the country could lose about 30.03 million barrels of crude, valued at an
estimated N1.37trn.
Figures from the Nigerian Upstream Petroleum Regulatory
Commission showed that in January, February, March and April 2022, the
country’s crude oil production (without condensates) were 1.39 million barrels
per day, 1.26mbpd, 1.24mbpd and 1.22mbpd respectively.
In May, June, July and August 2022, the figures were
1.02mbpd, 1.16mbpd, 1.08mbpd and 0.97mbpd respectively. The average oil
production for the eight months is therefore 1.168mbpd. This means that should
the workers shut down production for 30 days, the country would not produce
about 30.03 million barrels of crude.
For the prices of oil during same eight-month period, data
from countryeconomy.com, an international analytical firm, showed that the
average monthly costs of Brent, the global benchmark for crude, was
$86.51/barrel in January, $97.13/barrel in February and $117.25/barrel in March
2022.
In April, May, June, July and August 2022, the average costs
of a barrel of crude were $104.58, $113.34, $122.71, $111.93 and $100.45
respectively. This implies that the average cost of the commodity in the
eight-month period is $106.74/barrel. By not producing an estimated 30.03
million barrels in 30 days, the country would lose about $3.21bn or N1.37tn (as
at Thursday’s official exchange rate of N427.43/$)
The protesters besieged Delta State Governor’s Office Annexe
in Warri on Thursday as at 8 o’clock in the morning. The governor’s office
complex was jam-packed with the placard-carrying protesters, who sang
solidarity songs, condemning the massive crude theft.
They called on the government to take urgent and proactive
measures to checkmate the ugly trend, which they said had virtually crumbled
the national economy. They lamented that Shell and Mobil had been compelled to
relocate and divest following unbearable crude oil theft coupled with pipeline
vandalism.
Also speaking, Prince Emea Okorie, PENGASSAN Group Chairman,
NNPC Ltd, Warri, expressed concern that Nigeria could no longer meet its OPEC
target of 1.8mbpd, as the country was “presently struggling to meet 1mbpd due
to thefts.” Addressing the gathering, Mrs. Violet Onowakpokpo, the Director,
Governor’s Office Annexe, Warri, said the protest was a noble course. She
commended the participants for their patriotic and peaceful disposition.
She said the issue at stake was affecting everybody,
stressing that the struggle must continue until there was enduring peace in the
sector.
Sack non-performing service chiefs in 30 days
The National President, PENGASSAN, Festus Osifo, who led the
protest in Abuja, called on the President, Major General Muhammadu Buhari
(retd.), to sack his service chiefs in 30 days if the massive theft of cruse
oil continues.
He said, “We have said over and over again that the
President of Nigeria should sit up. He is the Minister of Petroleum Resources.
He is also the Commander-In-Chief. “He must act. He must give KPIs to the
security chiefs and he must give them a timeline. Give them one month, if there
is no appreciable progress, then you sack them. You bring in new set of people
who will go into the details to investigate the entire security outfit that you
have sent to the Niger Delta. Anyone who is found culpable should go to jail.”
Osifo said the union had repeatedly engaged stakeholders
over the last one year to proffer solutions to the problem of oil theft and
pipeline vandalism, but that the engagements had not yielded results. “In the
last one year, we have been engaging all stakeholders and we have been trying
to proffer solutions on what we think could resolve this impasse on crude oil
stealing and pipeline vandalism,” he said.
He added, “We have engaged all the stakeholders, from the
regulatory agencies to the operators, to the security chiefs, in other to find
a solution to this menace, but we have realised that those engagements have not
yielded the desired results.”
Osifo said the problem had continued to degenerate, while
vandals and oil thieves got emboldened, causing the shutdown of oil production
in the Niger Delta. He added that over 95 per cent of crude oil in the pipelines
were stolen, and that members’ welfare and jobs were being threatened.
The PENGASSAN president said, “A lot of companies operating
today in the Niger Delta, most especially, in the land regions, shut-in their
production, they don’t produce anymore, in most of the land locations. “It’s
affecting literally every single operator in the Niger Delta. They shut down
their production because their efforts became fruitless. When you pump in
10,000 barrels into the pipeline, at best, you are going to get about 1,000
barrels from there.
“Over 95 per cent of the crude oil, pumped into the
pipeline, they are vandalised. So, because of that, the majority of them have
had to stop production. And because they have shut down production, the welfare
of our members is being threatened, the jobs of our members are being
threatened.”
The Deputy Inspector-General of Police, Department of
Operations, Bala Senchi, received members of the association, on behalf of the
Inspector-General of Police, Bala Mohammed, at the Police headquarters.
He appreciated the protesters for keeping the protest
peaceful and promised to relay their message to the IG, for onward transmission
to the President, and assured them of further actions on the issue.
Similarly, the Group General Manager, Security, Nigerian
National Petroleum Company Limited, Abba-Gana Muhammed, received the protesters
at the NNPC Towers, on behalf of the Group Chief Executive Officer of the oil
firm Mele Kyari. He also appreciated members of PENGASSAN, stating that the NNPC
boss was also doing his best to nip the situation in the bud.
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