Confronting the menace of oil theft

It is a surprise that Nigeria has just woken up from its heavy inertia to know that the country is losing substantial volume of crude oil to oil theft and bunkering. These activities are as old as the oil industry. Nigeria cannot shy away from the truth or claim ignorance of the astronomical volume of oil theft for the past 50 years. It deliberately let loose the baby tiger into the wild to mature to a monstrous size and sophistication to evade being caught or detected in the act for several years.

There is a common sense that anywhere in the world where criminals are never caught or brought to justice for a long time, the government agents are directly involved or a cartel with powerful links to high profile politicians in government protecting the common interests of both parties is involved. The world is very familiar with this phenomenon as we always see in mafia movie plots. You may go to church every day and twice on Sundays, it does not to change the way of this world because this world is not a holy place but a hotbed for intimidation, victimisation and terrorism garnished with condiments of betrayal, greed and corruption.

The unprecedented economic consequences of the immense oil theft has left most serious thinking business men and high value politicians to ponder in their silent moment saying “What have we done to get to this state of putrescence?”
It is not that nothing was done in the past. Actually, in year 2000, NNPC made a very innovative and successful strategy to combat corruption at the PPMC depots nationwide, reduced pipeline vandalism and smuggling of petroleum products to the neighboring countries.

Let me rewind. A few years back, NNPC was fighting this battle alone especially the theft through pipeline vandalism for crude and finished products along system E and 2E NNPC pipelines. The depot pumping station may hardly know the conditions along the pipelines but a receiving depot may notice a drop in pumping pressure (signaling a suspected line break). At this stage it is impossible to physically inspect hundreds of kilometers of pipeline to detect the exact spot but have to patiently wait for a report from the affected community. Early detection of pipeline disruption was not possible at that time and may still be so today. In the past it took four to seven days to locate a vandalised spot through the effort of good Samaritans who took upon themselves to travel long distances to the nearest pipeline depot to report a case of pipeline rupture from either failed integrity of highly corroded pipes or from vandalism. On receiving such reports, NNPC would mobilise MOPOL with selected engineers to the location for the repairs of the damaged line.

In the early 2000, NNPC mobilised military and MOPOL to assist to curb the menace but it was later discovered they were part of the problems too. It was a nightmare for NNPC.

There was a proposal to involve the local communities to constantly monitor the safety of the pipelines passing through their communities in return for monthly payout for work well done. In this scenario, you cannot rely too much on human beings where there is exchange of money as a reward. The highest bidder becomes the master of the business and immediate change of loyalty.

In 1994, a think tank of NNPC then, the Consultancy Services Unit (CSU) based in Lagos proposed the use of technology to monitor the distribution of crude and product lines using the principles of TELEMETRY/ SCADA where NNPC could monitor real time distribution activities of the pipelines along the country’s arteries of pipeline network. Any vandalism or pipeline break along the distribution lines is instantly detected with a telltale blinking lights or audible alarm displaying the coordinates of the location on the screen. An SOS signal is immediately dispatched to the nearest military base (Airforce, Navy or Army or combined team) for immediate dispatch of anti-terror personnel to swoop the area and contain the menace.

Response time would be such that the vandals would not have enough time to inflict maximum damage. This idea was muted at the presentation venue and did not get to top management of NNPC at that time because of the associated high cost to deploy such technology. That costly decision to mute the idea did not consider the long term cost- benefit implications. If that technology was deployed at that material time, the country would have saved more than $20bn or more to date. Apart from the long term cost saving, the technological experience in managing the pipeline surveillance and security over the years would have been extended to our railway and road networks for same purpose.

This 1995 technology has advanced to modern and faster technology with many adds on (e.g. use of HD video cameras to capture footage needed in identifying and persecuting the criminal bunch in court, SMS, long distance drones, cloud storage, satellites, etc.).

It is still not too late if we prioritise the need to deploy this technology. The money to acquire this technology can be generated if we can significantly reduce the huge wastages from the three tiers of government which are too numerous to mention here. The government can reengineer its processes to save cost and improve efficiency in delivery of their goals.

If the government means business, to stop the oil theft, it should invite NNPC R&D division, Nigeria Upstream Petroleum Regulatory Commission, Multinational and National oil companies to meet and come up with solutions to put a final stop to the old problem that has wrecked the nation below its productive organs of survival.
The oil theft can be decimated through combine use of Advanced Warning and Detection Technology, Policy and Judiciary. The local vigilante group can be a useful catalyst in this drive for intelligence surveillance and information gathering. It is long overdue to overhaul the security of our national asset or we are gradually preparing a ground breaking recipe for self-implosion.

For the public knowledge, NNPC Research and Development outfit was set up at the same time with NNPC via the Federal Government April 1977 ACT No. 33. Most times when a war or a battle is won, nobody hears about those intellectuals and intelligent community that worked 24/7 behind the scene to support and enhance the outcome of the victory. It is now time for the federal government to wake up, make an early morning call to challenge and push the intellectual community of our great nation to start solving national problems through aggressive research and innovation. No Nation on this planet thrive in this highly competitive age without a solid foundation in Pure and Applied Research.

•Mr. Obaigbena is a retired Group General Manager in the NNPC Research & Development Division.

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