By Adewale Sanyaolu
The growing scale of the twin challenge of oil theft and illegal refining has been identified as major barriers to the country’s energy security and threat to the environment.
The duo of the Executive Secretary of the Nigerian Content Development and Monitoring Board(NCDMB), Mr. Felix Omatsola Ogbe and the Country Chair, Shell Companies in Nigeria and Managing Director, The Shell Petroleum Development Company of Nigeria Ltd (SPDC,) Osagie Okunbor, stated this at the 42nd Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE) which opened in Lagos, Monday
Ogbe, in a paper entitled “Resolving the Nigerian Energy Trilemma: Energy Security, Sustained Growth, and Affordability,” identified “alarming scale of pipeline vandalism and theft of crude oil” as the biggest threats to Nigeria’s energy security, noting that major oil and gas projects are required as well as a robust security strategy based on mutually beneficial collaboration with host communities.
On the Board’s strategy to create a safe and secure operating environment for oil and gas companies and thus eliminate the huge costs associated with vandalism and attacks on personnel and installations, the Executive Secretary disclosed that NCDMB has introduced a new policy known as “Back to the Creeks Initiative.”
According to him, “We are convinced at the Board that the incessant tampering with crude oil pipelines and hostilities in oil-producing communities have a huge impact on energy security,” and that the new initiative is geared towards curtailing incidences of disruptions of oil industry operations through targeted interventions.
These include execution of corporate social responsibility projects in communities, provision of affordable finance to local contractors, upgrade of basic educational facilities in villages and communities, building the capacity of teachers and improving the infrastructure at that level.
He said NCDMB has canvassed industry-wide support for initiatives that would reverse negative trends in Nigeria’s energy sector.
To achieve the above objectives, the Board has undertaken to work with stakeholders in the industry to dedicate one week in every calendar year to signing Final Investment Decisions (FIDs) on new projects, as prospective investors couldbe motivated to act expeditiously to meet agreed-upon deadlines and regulators are similarly encouraged.
Okubor said “The menace of crude theft and illegal refining must also be tackled to safeguard the nation’s resources and protect the environment,”.
The Shell boss who was represented by the Exploration Manager, Gogo Eneyok said the range of the Shell businesses were integrated across the energy value chain and working hard to address the challenges as captured in the theme of the event: “Resolving the Nigeria Energy Trilemma: Energy Security, Sustainable Growth & Affordability.”
“Shell, working with government, regulators and stakeholders, is actively participating in finding a pathway through the energy trilemma. We are focused on generating maximum value and cash to power the country.”
Referring to efforts towards low and zero-carbon products to market, he said: “Shell is deploying latest technologies in reducing emission in our operations and we are well on track to meet our forecasted Green House Gas reduction targets.” SNG is also increasing domestic gas delivery through its distribution network of 150 kilometers in Nigeria while Daystar and All On are giving individuals and communities access to cleaner and affordable energy.