Friday, 27 May 2016

Nigeria bleeds as militants blow up more pipelines

By Emma Amaize, Regional Editor, South-South, Soni Daniel, Clara

Nwachukwu, Emman Ovuakporie, Michael Eboh, Johnbosco Agbakwuru, Egufe

Yafugborhi, Brisibe Perez & Akpokona Omafuaire

WARRI — THE nation's crude oil fortunes took another downward plunge,

yesterday, following attacks by Niger Delta Avengers, NDA, on pipelines close

to Escravos Tank Farm at Ciera creek, near Abiteye community, Warri South-

West Local Government Area of Delta State, operated by Chevron Nigeria

Limited.

The attacks, on two separate gas and crude oil pipelines belonging to

Chevron, Wednesday night, caught security agents and the oil company

unawares.



it was learned that both lines were blown up during Wednesday's downpour

which prevented residents and workers from hearing the explosions.

An underground Chevron crude oil trunk line along the Ceria creek, near

Abiteye, and a major electricity gas line were severely affected in the attacks.

Sources said both incidents happened a short distance from the company's

multi-billion dollar tank farm in Escravos. It was gathered that the incident

was noticed by workers in the production department when they observed a

drop in production pressure early yesterday.

Militants attack

Yesterday, a top Chevron management staff and a security source confirmed

the incident to our correspondent. The source said a technical team of

experienced engineers had been dispatched to the scene of the spill to

ascertain the true cause.

A local source in the area said: "At the moment, the entire creeks are awash

with crude oil."

Another Chevron source, while confirming the incident, said: "The explosions

occurred while it was raining. There are two Chevron gas lines, which are the

onshore and offshore. It was the offshore pipeline that was affected, while the

other one is a crude oil line. The affected pipelines are located between the

Chevron Tank Farm and Ceria near Abiteye community."

Efforts made to reach Isa Ado, spokesman of JTF, to speak on the

development did not yield result as he did not respond to calls and SMS sent

to his telephone. Deji Haastrup, Chevron's spokesman, did not take calls put

to his lines, while mail sent to him was also not replied at press time.

Gbaramatu calm

Meanwhile, Gbaramatu Kingdom was peaceful and calm after the attack.

Speaking on the constraints facing residents of the area, Public Relations

Officer, PRO, Oporoza Youths, Paul Kirifede, said: "We did not record any

form of attacks on oil installations in Gbaramatu. Our only challenge is that

military operatives, who patrol the river every minute, are constantly

molesting us. We cannot fish, neither can we embark on our daily business

activities."

FG meets stakeholders on bombings

Meanwhile, the Federal Government has moved to end the destruction of oil

facilities by aggrieved Niger Delta militants, with a strategic meeting with

some militant leaders in Abuja, as a first step.

The meeting was attended by high level government functionaries such as the

governor of Edo State, Mr Adams Oshiomhole; National Security Adviser,

NSA, Maj.-General Mohammed Monguno (retd); Minister for Niger Delta,

Usani Uguru Usani; Minister of State for Agriculture, Senator Heineken

Lokpobiri; Coordinator Amnesty Programme, Brigadier-General Paul Boroh

(retd); and stakeholders from Edo, Bayelsa, Rivers, Akwa Ibom, Cross River,

Delta and Ondo states.

Following the meeting, the Amnesty Coordinator and SA to the President on

Niger Delta, Gen. Paul Boroh (retd), opted to move into the creeks to meet

with the aggrieved groups and individuals in order to end the renewed cycle

of attacks on oil facilities.

Boroh is to hold series of discussions with the militants to sheathe their

swords and embrace peace.

He said: "The whole aim of my relocation to the Niger Delta creeks is to

enable me identify the aggrieved individuals, groups and hold extensive

discussions with them on the need to keep the peace since the government is

working hard to put things right in the Niger Delta and other parts of Nigeria.

"From available records, the Federal Government has not reneged on its

amnesty package to the region and is working hard to improve the

infrastructure needs of the Niger Delta, one of them being the Calabar-Lagos

coastal railway, which is already captured in this year's budget."

Oil price rises to $50 per barrel

Also, oil price rose, yesterday, to $50 a barrel, for the first time in nearly

seven months, as a global supply glut that plagued the market for nearly two

years showed signs of easing.

The oil markets have suddenly been hit with a multitude of unexpected

supply disruptions, the largest of which comes from the more than four

million barrels per day that had been knocked offline because of wildfires in

Canada as well as crisis in Libya and easing of United States supplies have

contributed in buoying prices.

US pledges help

United States of America, USA, Consular General to Nigeria, Mr John Bray,

yesterday, expressed his country's preparedness to assist Nigeria restore

peace and end the ongoing violence in the Niger Delta by Niger Delta

Avengers and other militant groups.

The consular-general, made the disclosure when he visited former national

chairman of Association of Traditional Rulers of Oil Mineral Producing

Communities of Nigeria, ATROMPCON, and Pere of Seimbiri Kingdom, Delta

State, HRM Charles Ayemi-Botu, at his Edjeba Palace Annexe, Warri.

Bray, who was visiting Warri for the first time, said: "We are looking at

whatever we can do to assist the Nigerian government to establish a

peaceful, prosperous region in the South-South of Nigeria."

Oil firms owing FG $2bn — House c'ttee

Meanwhile, the House of Representatives ad-hoc committee probing all oil

prospecting licences, OPLs, and Oil Mining Leases, OMLs, granted by the

Federal Government, yesterday, said oil companies had deliberately avoided

to pay compulsory fees to the tune of about $2 billion.

Chairman of the ad-hoc committee, Gideon Gwani (PDP, Kaduna), who

briefed newsmen, said the oil companies, which ought to help the country in

view of its present predicament by prompt payment, were owing the

government hundreds of millions of dollars, thus compounding the nation's

woes.

He described the situation as alarming and worrisome, noting that it was a

dangerous trend that cannot be allowed to continue.

He said: "It is estimated that the oil companies, by their actions, have either

evaded or avoided the payment of these compulsory fees which is presumed

to have denied the Federal Government about $2 billion.

"At a time the government is talking of obtaining loans for infrastructure

development, such as roads, railways, power plants, petroleum refineries,

among others, and where oil blocs have been allocated to some companies

to use the proceeds accruing from loyalties, signature bonuses, etc, to fund

these important projects, yet several years after, these facilities are still

comatose, with little or no new projects to show as approved."

He expressed unhappiness that the Minister of State for Petroleum Resources,

Dr Ibe Kachikwu, and Central Bank of Nigeria, CBN, Governor, Mr Godwin

Emefiele, have not responded to requests of the committees.

Economic impact of attacks

Nigeria, which is hoping to fund its 2016 national budget in excess of N6

trillion benchmarked at $38/barrel, from mostly borrowings, will be hard put

repaying the loans, as the production cutbacks will significantly affect

building both the foreign exchange and production reserves.

Painting a gloomy picture of the situation, a former Director of industry

regulatory agency, Department of Petroleum Resources, DPR, Mr. Osten

Olorunsola, noted that the situation was so serious that it required both

urgent military and political interventions.

Olorunsola told Vanguard on phone: "If the situation is not resolved quickly,

it portends grave consequences for petroleum industry and the economy in

general, so it requires both political and military solutions.

"Attacks on oil facilities are a major setback because each time this

happened, apart from the production disruptions, it takes time, about two to

three years, for people to remobilise. As a result, oil and gas production

nose-dives, there will be no development in the region during the period of

the downturn, and if there are no production activities, there will be no

building of oil reserves."

Uduaghan urges FG to engage militants

Also, former governor of Delta State, Dr. Emmanuel Uduaghan, urged the

Federal Government to initiate a "serious engagement process" with the

militant group to end the bombings in the region.

Uduaghan told Vanguard: "I am disturbed by the damage, which the

explosions are causing to the environment. We live here, it is affecting us and

I also appeal to the Niger Delta Avengers to stop the attacks."

He said the Federal Government should review all the past decisions and

templates for the development of the region and take a holistic decision to

tackle development of the region to stem continuous resort to violence by

militants.

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