Oil
Oil theft: Nigerian Navy confiscates 66,000 barrels of crude oil
YENAGOA-Naval operatives from the Central Naval Command, Yenagoa, Bayelsa State, have arrested nine suspected illegal oil criminals and a vessel laden with 66,000 barrels of oil.
The suspects were arrested through a tip-off at Eremor field in Eremor community, off Brass River in the Ekeremor Local Government Area of the state.
The vessel, MT Dera 1, belonging to an oil exploration and production company, was said to have gone to the Eremor field for product testing, but was later discovered to have illegally loaded 66,000 barrels (10.5 million litres) of substance suspected to be crude oil.
Parading the nine-member crew on Friday, Commanding Officer of the base, Commodore Salisu Jubril, put the value of the crude oil at over N1 billion.
Jubril said the activities of the exploration company at the oil field had not been duly approved according to Nigerian Navy’s extant regulation.
He said naval operatives on patrol apprehended the vessel and its crew members about 6pm on Thursday.
He said, “Our men on patrol on Thursday, around 1800 hours, made the arrest of this vessel, MT Dera 1, which we found to have substance suspected to be crude oil, about 66,000 barrels, on board. The company is supposed to be testing for production and they already have this quantity on board.
“So, their activities are supposed to have been given due approval from the Presidency, petroleum resources ministry through Naval headquarters and they are supposed to have papers on board, which of course, they could not tender.
“The only paper they have that we have seen is for exploration and testing. So, the vessel is being arrested and we have stopped all their activities.
“The vessel was arrested at Eremor field. They are supposed to be testing for production, but they already had 66,000 barrels of crude oil on board. The vessel, MT Dera, is about 99 metres long, 3,800 tons. So, 66,000 barrels amount to 11 million litres. If you cost it in today’s oil price, it is in the region of N1 billion on board.”
Jubril called on oil-bearing communities to always synergise with the Navy and report such nefarious activities to the relevant authorities, stressing that such activities had multiple negative effects on their health, environment and the economy of the country.
He warned oil criminals to desist from unwholesome activities, saying the Central Naval Command was battle ready to stamp out all forms of oil–related theft in the states under its charge.
“This area falls under the jurisdiction of the CNC and the Flag Officer Commanding, CNC, has expressed nil tolerance for illegal activities.
“So, this is a clear warning to all perpetrators of this kind of activities and other people intending to commit crime– that whatever they do and wherever they go to perpetrate this atrocity, we shall catch them.”
The Production Supervisor of the vessel, Meshach Onofighara, argued that their mission was not illegal, saying they had all the documents for the well testing.
Meshach, who is an engineer, said, “I am the production supervisor for this well testing. What we are doing here is not illegal because we have all documents for the well testing with us.
“However, I cannot say whether it is legal or illegal. I do not have the details and I am not familiar with what is illegal. When you are doing testing, you are expected to have crude oil from the well.”
In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.
The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.
The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.
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These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.
The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.
This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.
These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.
The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.
By Yemie Adeoye
NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.
The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.
“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.
“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.
Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.
As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.
Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”
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This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.
Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.
We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.
“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.
On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.
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