‘It’s inaccurately captured’ — navy denies accusing NNPC of exaggerating oil theft figures 

The Nigerian navy says it did not accuse the Nigerian National Petroleum Company (NNPC) Limited of disseminating exaggerated figures on oil theft in the Niger Delta.

A report had, on Sunday, quoted a representative of the navy to have said NNPC was not “sincere” about the quantity of crude oil stolen while speaking to a senate committee.

But Adedotun Ayo-Vaughan, spokesperson of the Nigerian navy, in a statement on Sunday, said the discourse between the senate panel and navy’s representative was unfairly-worded.

“The attention of the naval headquarters, Abuja, has been drawn to a publication in a national daily of 4 December 2022 with the heading, ‘NNPC not sincere about oil theft, exaggerating figures-navy’. The said statement was purportedly made at an interactive hearing before the senate committee on economic and financial crimes during which the relevant agencies implementing the proceeds of crime (recovery and management) act, 2022 briefed the committee at the national assembly,” Ayo-Vaughan said.

“The report indicated that the chairman of the committee demanded explanations on why the country continued to experience cases of oil theft if the waterways were secured.” 

Ayo-Vaughan quoted the committee chairman as querying: “How come the navy hasn’t been able to solve the issue of oil theft and if the navy is claiming that the waterways are secured, why are there still cases of oil theft?”

He said it was equally mentioned that another lawmaker noted, at an oversight function, that the NNPC said crude pipelines were being tapped from the pressure pipe undersea and crude oil was usually transferred from there into vessels, and this had been happening for nine years. 

The navy spokesperson quoted the lawmaker as asking: “Is the navy aware or not of the taping going on under the sea?”

Ayo-Vaughan said the questions were all responded to and in the course of responding, it was explained that the challenge were due to the criminal activity inshore by the illegal local refiners in tapping into the export lines, many of which have not been in operation “since early this year, 2022 resulting in opportunity lost”.

“Also, the major terminals have not been able to process crude for export since around February/March and this inability to process as export is reported as stolen oil since it is practically impossible to steal and move 100,000 barrels per day out of the creeks.

“The navy representative at the senate hearing repeatedly mentioned that the navy is not indicting the NNPCL in any way and has been working with the national oil giant to curb the menace of crude oil theft since 1 April, 2022 when operation DAKATAR DA BARAWO (OPDDB) was launched in Onne, Rivers state as a mutual effort and synergy between the navy and NNPCL to address issues of crude oil theft, rampant illegal artisan refineries, illegal oil bunkering, amongst other criminalities in the creeks.

“At the strategic level, almost daily and regular consultations, engagements and meetings hold between the navy and NNPCL to review the situation, appraise the approach to curb the menace and proffer ways forward. 

“Pertinently, to attempt to imply otherwise will be a gross misrepresentation of the cordial and mutual working relationship between the two organisations.

“The said allegation of insincerity and exaggeration by NNPCL as captured by the journalist of the daily is not, therefore,  a fair wording of the actual discourse that transpired because what was said and what was meant was inaccurately captured particularly in the wording of the heading of the report.” 

FISCALISATION PROCESS 

Meanwhile, Ayo-Vaughan said the navy, in collaboration with the NNPC, intends to commence the “fiscalisation” process.

The process, he said, would see personnel of the navy present at offshore oil loading terminals to physically sight the metre reading at the point of loading of crude oil to tankers at sea.

“Again, for the avoidance of doubt, the Nigerian navy under the able leadership of vice admiral Awwal Zubairu Gambo CFR has been and will continue to work with NNCPL to fashion out solutions and remedies to the challenges in Nigeria’s maritime environment as concerning the oil industry for the overall good of Nigeria and indeed for all well-meaning Nigerians,” he said.

“Foremost of these mutual efforts is the planned return of the ‘fisicalisation’ process, which was stopped in the late 1980s, whereby personnel of the navy as at then, will now again, be present at offshore oil loading terminals/platform to physically sight the metre reading at the point of loading of crude oil to tankers at sea. 

“The first set of naval personnel to soon commence this task were sponsored by NNPCL and trained in the UAE and at Uyo, Akwa Ibom state. 

“There is, thus, a harmonious working relationship between the NN and NNPCL.”