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.
SOURCE: 13 November 2012.
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