News Update

Let Communities Guard Oil Facilities, Okowa Tells Oil Companies

By Sunny A Ijomah

Governor Ifeanyi Okowa of Delta State has advocated a review of surveillance contracts on oil facilities to involve host Communities in order to check the high rate of oil theft in the country.

He said that reviewing oil surveillance contracts based on performance of the contractors and engagement of host Communities would ensure effectiveness in securing the Nation’s Oil and Gas assets.

Senator Dr. Okowa made the call when he received a Federal Government delegation on anti-Oil theft led by the Minister of State for Petroleum Resources, Chief Timipre Sylva, on Wednesday at Government House, Asaba.

He admitted that the challenge of oil-theft was huge, given the level it had assumed, but expressed happiness with the steps being taken by the authorities to curb the menace.

“I am glad that we are discussing this hydra-headed issue which impacts directly on our economy and the environment.

“It impacts on the health of the people and sustainability of the environment and I am glad that we are taking some steps because there are so many issues that led us to this.

“We went through situations where gaps where created between host Communities and oil companies, and unfortunately criminality set in.

“It has gone so bad but we are doing our best as a state. I am also glad about this collaboration,” he said and stressed the pertinence of a review of surveillance contracts of the oil facilities to ensure community involvement.

Governor Okowa pointed out that it was often difficult to secure the facilities, especially when the persons given the contracts did not have adequate information on the environment or not have the buy-in of host communities.

“Why investment of the Communities is needed is because there are some parts of the creeks that cannot be accessed by the surveillance contractor. Therefore, surveillance contracts should not be such that communities are not involved.”

The Governor flayed the oil companies for not keeping faith with their Memorandum of Understanding (MOUs), thereby making the stakeholders to lose confidence in the system.

He explained that when oil companies failed to sign or implement MOUs, “it becomes very difficult for the State government to mediate when there are issues.”

Earlier, Sylva had told the governor that the team was in Asaba to seek the support and buy-in of the state government on measures to be adopted to check oil-theft, saying “as a country we cannot sustain this kind of theft perpetually”.

He said that oil theft had become a national emergency, especially as the nation had not been able to meet its OPEC production quota.

“Our production has dropped drastically to very unsustainable levels; so, we have decided to take the bull by the horn by putting some structures in place and those structures cannot function effectively without the collaboration of the state government,” the minister said.

Chief of Defence Staff, General Lucky Irabor, who is coordinating the security intervention against oil theft, disclosed that in the last five months security agencies had been dealing with issues of illegal refineries and oil bunkering across the Niger Delta.

The CDS also advocated for the engagement of indigenes and host communities in the fight against the criminal activity.

On his part, Group Chief Executive Officer of NNPC Limited, Mallam Mele Kyari, said that Nigeria was currently losing about two billion dollars monthly to the activities of oil vandals, with its attendant effect on environmental degradation.

“This has done extensive damage to the environment and losing 1.9 billion dollars every month is colossal, considering the nature of the global economy at the moment,” he disclosed.