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Nigeria’s oil output falls as theft soars



Despite the controversial N5.6 billion pipeline surveillance contracts awarded to ex-Niger Delta militant leaders, oil thieves are in business and Nigeria’s production is falling.

Production at the peak of militants’ activities in the Niger Delta was at its 1.3m barrels per day (bpd) all-time low.

Output increased progressively – up to 2.7 barrels per day after the amnesty programme and the award of pipelines surveillance contracts.

But following the recent sabotage, which led to shut-ins, production has dropped to 2.5m, thereby significantly reducing the country’s revenue.

Now, President Goodluck Jonathan is said to be considering the cancellation of the contracts. There was no confirmation of the plan last night, however.

Alleging crude theft, the Shell Petroleum Development Company (SPDC) at the weekend shut down the Imo River Trunkline in its Eastern operation, reducing production by 25,000 barrels daily.

Several crude theft points were found on the facility.

Agip, Total and others are also believed to be losing thousands of barrels daily to crude oil thieves “because beneficiaries of the contract have not been putting their houses in order”, said a source in the oil industry.

Representatives of the major oil firms, who insisted on not being named, are of the opinion that Ateke, Asari, Dagogo and Egberi Papa failed to justify the N2bn contract they got for the Rivers pipeline.

A Presidency source, who shares this view, hinted that the dismal performance of the ex-militants in Bayelsa and Rivers may have informed the unwillingness of President Jonathan to renew the contract.

It was gathered that the president is unhappy that even “after sticking out his neck” to approve the contract and the controversial multibillion naira coastal security contract awarded to ex-militant Chief Government Ekpemupolo (alias Tompolo), oil theft continues.

A company, Oil Facilities Surveillance Limited (OFSL), incorporated by Ekpemupolo got the biggest contract to police the Delta State end of the pipelines.

The contract is worth N3.6b.

The Gbaramatu-born Tompolo enjoys the support and respect of over 60 per cent of former militants from Akwa Ibom State to Ondo State.

The company owned by Mr. Victor Ebikabowei (a.k.a Boyloaf) got a N580m contract to take care of the pipelines in Bayelsa State.

The Rivers State group of Alhaji Mujaheed Asari-Dokubo, Ateke Tom, Prince Ipalibo Gagogo Farah and Soboma Jackrich, got a N2 billion contract to work in Rivers State.

Asari-Dokubo could not be reached for comments. But his spokesperson, Comrade Rex Anighoro, said: “On the surveillance contract, it is not an issue for Alhaji (Asari). Ateke Tom is the chairman of the company. Ipalibo Gagogo Farah is the Secretary and Alhaji Asari-Dokubo and Soboma Jackrich are members.”

While maintaining that he was not speaking on behalf of the company, Anighoro said the best avenue to seek answers as to why the company is not executing the contract is the Nigeria National Petroleum Corporation (NNPC), adding: “The contract was duly awarded by the NNPC to the beneficiaries who are qualified citizens. So, if there is a problem, those who awarded the contract should be asked about the bottleneck,” he added.

However, failure to renew the contracts which are due for review next year, might lead to massive unemployment among the over 5,000 people, some of them ex-militants, in employment as a result of the contract.

Keston Pondi of OFSL said the management of the company relies on its “goodwill and personal resources to continue to pay the huge wage bills”, adding: “We are getting close to a point where the company would be forced to lay off thousands of the youths.”

He advised the Federal Government to think about the implication of throwing about 5,000 more youths into the streets without jobs. “If the contract is not renewed, we could be returning to the dark days because illegal bunkering and other crimes will escalate; it will spell doom and the country will be worse off,” he said.


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Asari-Dokubo could not be reached for comments. But his spokesperson, Comrade Rex Anighoro, said: “On the surveillance contract, it is not an issue for Alhaji (Asari). Ateke Tom is the chairman of the company. Ipalibo Gagogo Farah is the Secretary and Alhaji Asari-Dokubo and Soboma Jackrich are members.”


These guys,particularly Ateke Tom are barely literate yet gej handed our common wealth to them largely because most educated unemployed graduates who constitue a large percentage of nigerian youths are intellectually lazy and cowardly.The same thing will play out at the end of boko hara-FG dialogue.In Nigeria,it seems school is meant for the weak .

Why can't nigerian soldiers take over this jungle nigeria, kill all these corrupt fools and restore proper democracy.

Why am I even shouting, they have found oil in my state anambra,I will register a security outfit and ask for billions to guard the oil facilities else I will explode it.

Imagine!!


Dirty things wt alien names awarded multi-million dollar contracts

GEJ ηo be complete human being

The federal government should learn from the UK as regards security matters being left for private organizations at the just concluded Olympics. I am very sure that the Joint Task Force can do a very good job if giving those billions.

A Presidency source, who shares this view, hinted that the dismal performance of the ex-militants in Bayelsa and Rivers may have informed the unwillingness of President Jonathan to renew the contract.

It was gathered that the president is unhappy that even “after sticking out his neck” to approve the contract and the controversial multibillion naira coastal security contract awarded to ex-militant Chief Government Ekpemupolo (alias Tompolo), oil theft continues.

A company, Oil Facilities Surveillance Limited (OFSL), incorporated by Ekpemupolo got the biggest contract to police the Delta State end of the pipelines.

Some of us warned that , at a very critical junction, it was a recipe for disaster that Nigeria was gaining a corrupt and historically unprincipled mediocrity as its number 1 citizen. Now we are seeing the fallout of this with how GEJ is a President who is always being 'played' and held to ransom by every punk and wannabe.

If it is not MEND, then it is AGIPs and terrorists groups 'extorting' or embarrassing our President. Sad for Nigeria. Boko Haram are now about to join the crew of those enriching themselves due to the capitulation of a weak, naive and unprincipled President. They will then go back to killing Nigerians after feeding fat from GEJ's weak disposition and desperation. Same as Tompolo et al take the money and look the other way. Sad. Everyone is just getting stupendously rich playing on the fact that GEJ is a clueless individuals who simplistically believes throwing money at everything delivers solutions.

lacasa: Imagine!!


Dirty things wt alien names awarded multi-million dollar contracts

GEJ ηo be complete human being

how can he be complete when his is missing a pair of shoes

lagerwhenindoubt:

how can he be complete when his is missing a pair of shoes

Well, he has plenty of shoes now and he appears hell-bent on using Nigeria's wealth to buy shoes for all the miscreants, AGIPs and blackmailers in society.

Gbawe:

Well, he has plenty of shoes now and he appears hell-bent on using Nigeria's wealth to buy shoes for all the miscreants, AGIPs and blackmailers in society.

That would be ascribing too much initiative to GEJ where there is none. He is not hell-bent, he simply wavers to any side that says NO twice. If he tries to resist MEND and they say NO, NO he gives them amnesty, If he tries to resist corrupt oil marketers and they say NO, NO he pays up. I was dog-gone sure that a teary-eyed GEJ made this clear to the US-Envoy that he is not fit for the role of President (thanks to WIKI-LEAKS) but hey 90% of Nigerians voted anyway

man go dey because man nor fit

lagerwhenindoubt:

That would be ascribing too much initiative to GEJ where there is none. He is not hell-bent, he simply wavers to any side that says NO twice. If he tries to resist MEND and they say NO, NO he gives them amnesty, If he tries to resist corrupt oil marketers and they say NO, NO he pays up. I was dog-gone sure that a teary-eyed GEJ made this clear to the US-Envoy that he is not fit for the role of President (thanks to WIKI-LEAKS) but hey 90% of Nigerians voted anyway

Was it GEJ that gave amnesty to MEND? Are you this dense? Which Oil Marketers 'pay up' are u talking about? You live in Nigeria at all? Oil marketers that have been so denied monies that they can no longer afford to import fuel, service their loans in d banks, sm are actually closing shops, just as more than 45 of them and dier companies are currently been prosecutd in batches (anoda 7 new ones were just arraignd in court yterday); again, which 'paying up' Oil marketers are u talking about? How does obvious Lies and Propaganda sound in yr heads b4 spitting it

@ OP - wetin concern arewa with this thread

@topic, i am always astonishd at d Hypocrisy of most 'talking' Nigerians! Was it not Nigerians that were shouting: give dem Amnesty AND let the youths monitor the pipelines cos they know dier areas? Most 'talking' Nigerians supportd these 2 moves sm few yrs ago at d height of d Niger Delta crisis, even though a few of ppl (including myself) were cautious of such calls; Yar'adua then gave Amnesty to d youths while GEJ gave dem contracts to 'protect' d pipelines. So while are ppl complaining now; was it not what u guys wantd. Bunch of confusd noise makers...... GEJ shld NOT renew d contracts for the youths, moreso that a provision in PIB bill provides 10% of d net profit of Oil companies directly to d villagers with d conditn that no oil pipeline shld be vandalisd in that village- this hopefully wud force ordinary villagers to help security agents protect d pipelines that passes tru dier lands. The Amnesty programme shld also be gradually phasd-out by paying a lump sum to those youths who hv already finishd their trainings instead of continually paying them and keeping them in d programme; while those youths still undergoing training as well as those that were brought in dis yr shld be allowd to finish with their trainings after which they wud be paid a lump sum and askd to leave d programme... LESSON: Nigerians shld undastad what they really want, and then be willy to stand by their choices

But seriously I don't think any nation this big has been saddled with such mediocre leadership. How illiterate and thuggish tompolo is among twenty most powerful nigerians (believe it or not) and is a multi billionaire is beyond me

nku5: @ OP - wetin concern arewa with this thread

y'mean mallam taharqa it is a good sign

onomeasike: Asari-Dokubo could not be reached for comments. But his spokesperson, Comrade Rex Anighoro, said: “On the surveillance contract, it is not an issue for Alhaji (Asari). Ateke Tom is the chairman of the company. Ipalibo Gagogo Farah is the Secretary and Alhaji Asari-Dokubo and Soboma Jackrich are members.”


These guys,particularly Ateke Tom are barely literate yet gej handed our common wealth to them largely because most educated unemployed graduates who constitue a large percentage of nigerian youths are intellectually lazy and cowardly.The same thing will play out at the end of boko hara-FG dialogue.In Nigeria,it seems school is meant for the weak .

my broda i tire oo

nku5: @ OP - wetin concern arewa with this thread

arewa is the most vociferous against the contract,as a matter of fact,arewa sponsored an advertorial against it.Gej,acting through NIMASA defended it,they called it development of local content in nigerian oil and gas business.