Tag Archives: Niger Delta Avengers

Patriotic Traitors: Covering Up Oil Theft in Nigeria

Nigeria, Africa’s most populous country desperately needs the money an oil boom could bring. Some 40% of its people live on less than the equivalent of $1.90 a day. The woeful economy has contributed to the violence that afflicts much of the country. In the first half of this year, nearly 6,000 people were killed by jihadists, kidnappers, bandits or the army.

One of the reasons Nigeria’s public finances benefit so little from high oil prices is that production itself has slumped to 1.1m barrels per day, the lowest in decades. Output has been dipping since 2005.  Output is falling partly because the Nigerian National Petroleum Corporation (NNPC) is so short of cash…And a lot of the oil it pumps never makes it into official exports because it is stolen. Watchdogs reckon that 5-20% of Nigeria’s oil is stolen…The spate of vandalism at one point prompted the NNPC to shut down its entire network of pipelines, he said.

One way to steal is to understate how much oil has been loaded in legitimate shipments. Another is to break into pipelines and siphon oil off, then cook it up in bush refineries before selling it. Five years ago the Stakeholder Democracy Network, a watchdog in the Niger Delta, carried out a survey that found more than a hundred such refineries in just two of Nigeria’s nine oil-producing states. Lacking other ways to make a good living, hundreds of thousands of young people are involved in illegal refining, says Ledum Mitee, a local leader from Ogoniland, a region in the Delta.
 
Plenty of stolen crude goes straight into the international market. Small boats glide along the Delta’s canals, filling up from illegally tapped pipelines. They deliver it to offshore tankers or floating oil platforms. Sometimes the stolen crude is mixed with the legal variety, then sold to unknowing buyers. Much of it, however, is bought by traders who pretend not to know it is stolen, or simply do not care if it is or not. “

Tapping into the pipes for large volumes, heated to keep the crude flowing, requires real expertise. It also requires complicity from some of the officials running the pipelines and from the security forces supposedly guarding them…The NNPC itself is “the north star in Nigeria’s kleptocratic constellation”, says Matthew Page of Chatham House, a think-tank in London.

Excepts from How oil-rich Nigeria failed to profit from an oil boom, Economist, Sept. 17, 2022

From Natural Landmark to an Oil Spill Wasteland

Mohammad Abubakar, Minister of Environment  disclosed in July 2021 that Nigeria recorded 4,919 oil spills between 2015 to March 2021 and lost 4.5 trillion barrels of oil to theft in four years.

Mr Abubakar disclosed this at a Town Hall meeting in Abuja, organised by the Ministry of Information and Culture, on protecting oil and gas infrastructure. “The operational maintenance is 106, while sabotage is 3,628 and yet to be determined 70, giving the total number of oil spills on the environment to 235,206 barrels of oil. This is very colossal to the environment.

“Several statistics have emphasised Nigeria as the most notorious country in the world for oil spills, loosing roughly 400,000 barrels per day. “The second country is followed by Mexico that has reported only 5,000 to 10,000 barrel only per day, thus a difference of about 3, 900 per cent.

“Attack on oil facilities has become the innovation that replaced agitations in the Niger Delta region against perceived poor governance and neglect of the area.

Excerpts from Nigeria Records 4,919 Oil Spills in 6 Years, 4.5trn Barrels Stolen in 4 Years, AllAfrica.com, July 6, 2021

No Clean-Up, No Justice: Ogoniland, Nigeria

The UN Environment Programme in 2011 proposed the creation of a $1 billion fund to repair the damage done by decades of crude spills in the Ogoniland area in southeastern Nigeria. However, progress has been poor and the little work that has been done is sub-standard, advocacy groups including Amnesty International reported in June 2020.  “Research reveals that there is still no clean-up, no fulfillment of ‘emergency’ measures, no transparency and no accountability for the failed efforts, neither by the oil companies nor by the Nigerian government,” the groups said.

Shell’s Nigerian unit pumped oil in Ogoniland until 1993, when the company withdrew amid increasing protests against its presence. Even though the Hague-based company no longer produces crude in the area, a joint venture operated by Shell Petroleum Development Company, or SPDC, still owns pipelines that crisscross the region.

A government agency responsible for overseeing the clean-up, the Hydrocarbon Pollution Remediation Project, known as Hyprep, was finally set up in 2017 after several false starts, but it’s failing to deliver. …“Hyprep is not designed, nor structured, to implement a project as complex and sizable as the Ogoniland clean-up,” the report cites UNEP as saying in 2019

Excerpt from Clean Up Oil in Nigerial Lacks Progress, Bloomberg, June 18,, 2020

Cash or CleanUp? life in the oil polluted swampland

Nearly a decade after two catastrophic oil spills in the Niger Delta, a comprehensive clean-up has been launched in 2017 in the southern Nigerian region.

Earlier this month, crews of young men equipped with high pressure hoses began to attack the crude oil blighting the creeks and mangrove swamps where they live.  Workers from Bodo in Rivers State are beginning a three-year project that claims to mark a new approach to cleaning up the delta, the vast polluted swampland pumping the oil vital to Africa’s largest economy.

Four hundred workers will clear dead foliage and spilled oil before planting new mangroves. Where they are working is small but organisers hope the anti-pollution drive can be repeated elsewhere in the delta.

Unlike clean-up operations run routinely by oil giant Royal Dutch Shell, this one is backed by local communities and teams of scientists who will take samples of water, mud and soil in each area to measure progress and determine the best cleaning method.  Funded by Shell and its joint venture partners, the clean-up is the culmination of years of legal wrangling and international pressure to overcome animosity and mutual suspicion that have divided locals, government and oil companies.

Shell declined to say how much it was spending, while leaders see it as a glimmer of hope in a benighted land where many wells are not safe to drink from and fishing and farming are devastated.

“The Niger Delta is at a crossroads,” said Inemo Samiama, chairman of the Bodo Mediation Initiative (BMI), managing the clean-up. “We have a lot of polluted sites. We need something we can refer to, some shining example.”

The work of BMI covers 10 sq km, a fraction of the 70,000 sq km Delta.  As workers walk through gnarled, dead mangrove roots in protective gear and masks, oil seeps into their footprints – remnants of spills for which Royal Dutch Shell admitted responsibility. Despite the optimism, environmentalists point out at BMI’s work rate, it will take 21,000 years to clean the entire delta and that’s not including the 10 years of legal battles it took to make it happen.  Communities in eight other Delta states are unhappy they have no clean-up plan, fuelling the resentment underpinning militant movements that hit production last year and helped tip Nigeria into its first recession in 25 years.  One group, the Niger Delta Avengers, has threatened a return to violence. They say government is not keeping its promises to clean up the delta and provide more jobs, money and infrastructure.

Bodo received support from British law firm Leigh Day, which negotiated a 55 million pound pollution settlement with Shell in 2015. Leigh Day said it agreed to freeze a separate case to force a clean-up via British courts in order to give the BMI a chance.  Ogoni, the wider area in which Bodo sits, was the subject of a 2011 UN Environment Programme report warning of catastrophic pollution in the soil and water.

King Emere Godwin Bebe Okpabi of the Ogale community is on the board of a wider Ogoni clean-up effort and is optimistic its own clean-up, due to start next year, will work. But he fears it will not be replicated elsewhere without another marathon battle in the London courts.“The only place you get legal success is the international courts,” he said.

Under Nigerian law, oil companies must begin cleaning up any spill within 24 hours. But the remoteness of spills and lax enforcement mean this rarely happens.  Ferdinand Giadom, a lecturer at the University of Port Harcourt and technical advisor to the Bodo cleanup, said communities often block clean-ups in the hopes of cash settlements. Even in Bodo, works were delayed by two years due to local infighting.

Shell said most oil spilled last year was due to sabotage or theft for illegal refining. It also said communities block access to sites, making cleaning more difficult.

Excerpts from Anger on the margins of historic clean-up in Nigeria’s Delta, Reuters, Nov. 9,  2017

9 oil spills per month: Niger Delta

The oil-rich Niger Delta has generated billions of dollars for Shell over the past 60 years, but the company’s operations have been plagued by sabotage, theft and oil spills that ravaged the local environment.  Though Nigeria was one of its most prolific regions for crude production in 2015, Shell has sold off tracts of onshore oil fields. Its new focus—sealed with the mammoth $50 billion acquisition of BG Group PLC this year—is deep-water wells off the coasts of the U.S. and Brazil and a historic shift toward natural gas that puts it at the forefront of oil companies offering a more climate-friendly image to investors.

The hearings in London’s High Court on November 2016 represented an early test for cases brought by the community of Ogale and a group from the Bille Kingdom. The communities are hoping to hold Shell accountable for environmental damage they claim has been caused by spills from infrastructure operated by Shell’s Nigerian subsidiary, Shell Petroleum Development Co. of Nigeria Ltd., or SPDC.  Shell is expected to argue that only the subsidiary should be held liable and that the cases should be heard in Nigeria, SPDC’s base and where the incidents took place…

But the communities and their lawyers say seeking justice in Nigeria won’t hold Shell responsible for the actions of its subsidiary and is extraordinarily difficult...“You cannot fight Shell in Nigeria,” the king of Ogale, Emere Godwin Bebe Okpabi, said in a phone interview. “Shell is Nigeria, Nigeria is Shell.

It is a point Shell has already contested in The Hague, where four Nigerian farmers and Friends of the Earth successfully appealed a ruling that was largely in Shell’s favor in 2015, allowing them to pursue a case against the company in the Netherlands.

In 2015, the company said it experienced on average nine oil spills a month caused by sabotage or theft, with a handful of additional spills caused by operational issues. An uptick in violence this year has knocked important export terminals out of action for months at a time, though divestments onshore have helped reduce the overall number of spills Shell has recorded…

The company has already paid out £55 million, or roughly $80 million, to compensate another Niger Delta-based community in a settlement reached last year after they brought a separate lawsuit in London. In that instance, Shell admitted the spills were caused by operational failures.

Excerpts from Shell Fights Lawsuits Over Environmental Record in Nigeria, Wall Street Journal, Nov. 19, 2016

The Niger Delta Avengers

Leaders from Nigeria’s Niger Delta called on President Muhammadu Buhari to pull the army out from the oil hub, order oil firms to move headquarters there and spend more on development to end militancy in the region.  Buhari met leaders from the southern swampland for the first time since militants started a wave of attacks on oil pipelines in January 2016 to push for a greater share of oil revenues.

At the meeting in the presidential villa in Abuja, Niger Delta leaders, joined by representatives of militant groups, gave Buhari a list of 16 demands to pacify the impoverished region where many say they do not benefit from the oil wealth…

The delegation leader said oil firms should move headquarters to the region so unemployed youths – who often work for militants – could get more jobs. Foreign firms active in Nigeria are often based in the commercial capital Lagos.  The Niger Delta leaders also asked for more funds for the development and an amnesty plan for former fighters which Buhari had planned to cut.

The attacks, which put four key export streams under force majeure, had led production to plunge to 1.37 million barrels per day in May, the lowest level since July 1988, according to the International Energy Agency (IEA), from 2.2 million barrels in January 2016.

Nigeria agreed on a ceasefire with major militant groups in 2009 to end an earlier insurgency. But previously unknown groups have since taken up arms after authorities tried to arrest a former militant leader on corruption charges.  Under a 2009 amnesty, fighters who lay down arms receive training and employment. However, of the $300 million annual funding set aside for this, much ends up in the pockets of “generals” or officials, analysts say – an endemic problem in a country famous for graft.

Any ceasefire would be difficult to enforce as militants are splintered into small groups of angry, young unemployed men even their leaders struggle to control.

A major group, the Niger Delta Avengers, had initially declared a ceasefire in August 2016 but then claimed another attack in October 2016 .

Excerpts from Niger Delta leaders want army out, Reuters, Nov. 2, 2016