Illegal oil bunkering, violence and criminal offences in. The effects of oil bunkering in the nigerdelta region of. The result is that oil bunkering has transcended being a solely nigerian problem to be that of the entire gulf of guinea obasi, 2010. A primer on nigerias oil bunkering council on foreign. Effects of maritime illegal oil trading on economic growth in nigeria. The collapse of oil hit nigeria hard nigeria s 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. The niger delta is a host to nigerias proved oil and gas reserves. However, it is obvious that such bourgeois activity has not tangibly. Blood oil in the niger delta united states institute of peace.
In support of the above positions, obasi 2011 asserts that illegal oil bunkering as used in nigeria is a generic term encompassing not only unauthorized loading of ships but also all acts involving the theft, diversion and smuggling of oil. Pdf the upsurge of oil theft and illegal bunkering in. Pdf effects of illegal oil bunkering and piracy in nigeria. Effects of oil spills on fish production in the niger delta. It is less clear how much reaches the international market further afield. The upsurge of oil theft and illegal bunkering in the. Oil bunkering threatens nigerias economy, environment. Pdf oil bunkering activities in the niger delta the way forward. Pdf effects of illegal oil bunkering and piracy in. While it illegal oil bunkering has gone on around the niger delta for about 30 years, it escalated more recently 2012 to present thereby poses serious implications on many facets of in nigeria. Nigeria, a major producer and exporter of hydrocarbon fuels, has suffered significantly from the activities of illegal oil bunkers in recent past. Jun 22, 2020 although, these are part of the necessary measures to curb oil bunkering, maintaining tranquillity in and improving the economic growth of nigeria, but government should keep checks on corrupt security agents. Illegal oil bunkering in the niger delta region of nigeria.
May 11, 2019 illegal bunkering and oil theft have continued to threaten the growth and survival of the nigerian economy and has continued to cause pollution of the environment in the niger delta region. Nigeria has accounts for practically all of nigeria s oil exports a large deposit of crude oil, with proven reserves nnpc, 2010. The stolen oil is loaded onto barges and tankers and sold in nigeria and the surrounding region in ghana, cameroon, cote divoire, even south africa. As a consequence of damage to oil facilities and bunkering, shells oil production is currently only 20 percent of its capacity. Oil bunkering holds a positive meaning in a general sense, but in the rich oil fields of the niger delta in west africa the term more often than not implies a criminal practice embedded in political, social and economic controversies. Pdf the niger delta wetland, illegal oil bunkering and. Jun 04, 2012 insecurity in some parts of the country results in part, from accessibility of oil purchased arms with illegal bunkering serving as a major contributor to nigeria s violent crime, armed robbery. Some estimates, however, run as high as 600,000 bpd. Illegal oil bunkering is effectively nigeria s most profitable private business. Discovery of oil oil was discovered in nigeria in 1956 concentrated in niger delta previously an agricultural dependent economy, became reliant on oil.
In terms of an orthodox definition and in the context of nigeria, oil theft is constituted as the illegal appropriation of refined oil or crude oil from the various multinational oil companies that are positioned in the country through the process of oil bunkering 4 this includes the theft, diversion, and smuggling of petroleum products. Understanding the armed groups of the niger delta final. The discovery was made by shellbp, at the time the sole concessionaire. The aim of this work is to critically examine the causes, actors, methods, impacts of oil thefts, illegal bunkering, pipeline vandalism and the measures adopted by the nigerian government to combat it. Development crises and peasants survival mechanisms in. Oil bunkering operations are very common in nigeria s oil rich niger delta region. This paper examines the rising cases of oil thefts, illegal bunkering, pipeline vandalism in nigeria from 20152016. Findings show that violent attacks were unleashed on the residents of igboolomu community by poor and jobless youth with differing ethnic background who engage in illegal oil bunkering. Jan 15, 2014 it was a surprise to some, but business as usual to other experts in the nations oil sector, when the news broke that the federal government has approved oil bunkering business in the country. Maritime aspects of illegal oilbunkering in the niger delta. Proposing extension of informed policymaking richard ingwe institute of public policy and administration ippa, university of calabar, p. Oil theft, or bunkering, occurs throughout the niger delta, where pipelines crisscross the region.
There are eighteen international crude oil companies in nigeria, these companies include. A price recovery could spark renewed interest in exploration, but the past three lacklustre years have had a damaging impact on the continents oil and gas industry. Pdf this paper examines the impact of illegal oil bunkering and theft which has continued to threaten the survival of the nations economy. Postcolonial text, vol 8, no 3 20 the niger delta wetland, illegal oil bunkering and youth identity politics in nigeria paul ugor mcmaster university introduction between 2005 and 2009, almost an entire generation of youth in the oil rich niger delta area in nigeria took up military weapons against the nigerian state and multinational oil corporations. Nigeria had, of course, become an archetypal oil nation. This paper examines the rising cases of oil theft in the niger delta region of nigeria which has negatively impacted on the. Bunkeringis the practice and business whereby duly licensed.
In this study, the history of bunker oil and the various types of bunkers were examined. Oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of exploration. In recognition of the major challenges ahead for nigeria s oil revenue and ultimately its economy, this article briefly highlights some issues that need to be urgently addressed by the federal government if it is indeed serious about its intentions to stem the tide that currently threatens to overwhelm the nations oil. The stolen crude can currently be sold at around u. Aug 04, 2011 oil was first found in nigeria in 1956, then a british protectorate, by a joint operation between royal dutch shell and british petroleum. Oil export revenue accounts for 70 percent of nigeria s total government revenue and 95. There is a large scale illegal local and international trading on crude oil. Maritime aspects of illegal oilbunkering in the niger.
Pdf the upsurge of oil theft and illegal bunkering in the. Most sources quote around 100,000 bpd lost via bunkering in nigeria, a quantity equal to the entire oil production of cameroon. Applicants for bunkering licences must show evidence of technical and. Transborder economic crimes, illegal oil bunke natural. The business of oil bunkering is as opaque and murky as the. The techniques employed in oil bunkering makes it nigeria s most profitable illegal private business in the petroleum industry onuoha, 2009. Since the discovery of crude oil at oloibiri, delta state nigeria in 1956, nigeria became a major oil producing nation and by 2012 was the largest oil producing nation in africa and the sixth largest in the world.
While oil production has brought a significant level of development to the niger delta region in particular and nigeria at large, its effect on the host disastrous. Despite the huge financial cost on the part of the government and the multinational oil companies, the. Oil bunkering, a regular sight in niger delta region. Policy brief series natural resource governance institute. Comrade sunny ofehe visits the niger delta with sharon gesthuizen, dutch member of parliament. Oil bunkering undermining nigerian economy vanguard news. An investigation into root causes of sabotage and vandalism of pipes. It is a hazardous process that is very pervasive in. Oil theft, illegal bunkering and pipeline vandalism. Illegal oil bunkering is a regular activity in the niger delta region in nigeria. Examining the environmental vulnerability 1department of political science, anambra state university, igbariam campus, nigeria.
A challenge to nigeria s development tombari bodo, batombari gbidum gimah, kemetonye joy seomoni 4. Although some wide differentials exist in the diverse figures often bandied around as estimated loss of the nigerian government to illegal oil bunkering, human rights watch 2003 figures of between 150,000 and. Nigerian, niger delta context due to the presence of oil and gas activities. Here the are being informed about the oil bunkering in abuloma. Development crises and peasants survival mechanisms in the. The niger delta region is the crude oil and natural gas hub of nigeria with several networks of product pipelines both surface and subsurface which has created a social problem of vandalization of the product pipelines for the purpose of stealing the product. Solutions to piracy and oil bunkering in nigeria waters. Prior to the discovery of crude at oloibiri in communities where it is derived is nothing but. 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. Nigeria is africas most populous country and currently its largest oil producer.
Bunkering bunkering is the theft of crude oil directly from pipelines, flow stations, and export facilities. Crimes, illegal oil bunke ring and economic reforms in nigeria. Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream producing 5,100. A large, densely populated, and highly heterogeneous. Jul 20, 20 oil is the lifeblood of nigeria s economy. Amnesty, illegal bunkering, niger delta, nigeria, oil theft i. Even with sustained high oil prices, it will take time to recover.
Effects of illegal oil bunkering in nigeria matthew pickin nigeria is the most challenging maritime security environment on earth1. The report, while acknowledging improvements to shells jiv process since 2011, identified serious flaws that. Pdf transborder economic crimes, illegal oil bunkering and. Pdf oil bunkering activities in the niger delta the way.
Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream producing 5,100 bpd. Bunkering ob, oil scooping vandalization os, and environmental. Illegal oil bunkering in the niger delta region of nigeria european. 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. In recognition of the major challenges ahead for nigeria s oil revenue and ultimately its economy, this article briefly highlights some issues that need to be urgently addressed by the federal government if it is indeed serious about its intentions to stem the tide that currently threatens to overwhelm the nations oil industry. In fact, it is estimated that oil production in nigeria runs at only two thirds of capacity because of theft, vandalism and violence in the niger delta. Pdf transborder economic crimes, illegal oil bunkering. Findings show that violent attacks were unleashed on the residents of igboolomu community by poor and jobless youth with differing ethnic background who engage in illegal oil bunkering in the community. The two begun production in 1958, and were soon joined by. Proceeds from the oil bunkering go directly to militants and corrupt officials. Introduction a recent international maritime bureau imb report has stated that piracy off the coast of west africa is almost totally a nigerian problem.
Implications of oil theft and illegal bunkering in. The upsurge of oil theft and illegal bunkering in the niger. Introduction the niger delta accounts for over 80% of nigeria s oil production with over 600 oil fields, 5,284 oil wells, 10 oil and gas export terminals, 275 flow stations 10 gas plants, and massive liquefied natural gas and is. Oil bunkering threatens nigerias economy, environment the. Applicants for bunkering licences may have memorandum of understanding mou with reputable bunker fuel trade partners, locally or internationally. Illegal oil bunkering, violence and criminal offences in nigeria s territorial waters and the niger delta environs. Oil bunkering activities in the niger delta american journal of. The practice of illegal oil bunkering entails a dynamic that reaches offshore into the gulf of guinea to effect an impact beyond. 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.
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