…Pass vote of confidence in Tantita, others
JONAS EZIEKE, Abuja
The joint National Assembly Committees on Petroleum Resources on Wednesday dismissed three petitions against the pipeline surveillance contract, while passing a vote of confidence in Tantita Security Service, the security agents and the NNPCL for helping to restore the nation’s oil production.
Oil production, according to available records to the panel, stood at about 1.8 million barrels per day as at April, an increase from about 900,000 per day in 2022 when the surveillance contract was awarded.
The resolution followed a motion moved by the Chairman of the House Committee on Petroleum Resources, Midstream, Henry Okojie, at a one-day parliamentary roundtable on the state of pipeline security and the battle against crude oil theft.
Okojie said that Tantita and the security agencies have recorded lots of achievements in securing the nation’s petroleum assets, thereby increasing oil revenue for the country.
Speaking at the roundtable, Speaker of the House of the apex legislature, Rt Hon Abbas Tajudeen said despite the ongoing tensions in the Middle East and the protracted conflict involving Russia and Ukraine, the need for valiant efforts at finding alternative energy sources has become necessary, adding that crude oil still remains the largest source of primary energy in the world, especially the transport sector where it still powers 95 percent of all vehicles, planes and ships.
The Speaker said the current crises, particularly with the closure of the Strait of Hormuz, has resulted in price surges and supply shortages, with consequential impact on the nation’s economic survival, saying “as a nation, we must rise to the challenge, and this roundtable is a clear indication that the National Assembly is ready to lead the way.
He said further that in order to understand why the surveillance contract became necessary, “we must remember that Nigeria’s journey as an oil-producing nation has been a very challenging one.
“The discovery of petroleum has both earned us massive foreign exchange and resulted in environmental degradation and despair. As a result, the Niger Delta has witnessed profound agitations over the years which often resulted in pipeline vandalism, crude oil theft, and illegal refining activities.
“Desperate communities and weak enforcement structures created a climate of instability in the oil sector with staggering consequences.
“At some point, Nigeria was losing billions of dollars annually as between 10 to 30 percent of crude oil production was lost to theft, undermining national revenue and questioning our capacity to remain a reliable oil producer.
“It was within this context that the Federal Government introduced the pipeline surveillance contract, including the engagement of private security actors and community-based structures.
“These interventions were designed to provide security to our oil facilities, with the understanding that without the help of the communities where these pipelines and other infrastructure were located, the job of securing them would be impossible.
“In the end, the synergy of private surveillance providers, our security agencies, and community engagement, led to remarkable improvements in our daily production quotas.”
The number four citizen of Nigeria said further that there has been clear undeniable and compelling success stories, saying “recent reports indicate that most of the illegal tapping points have been dismantled, production levels have improved significantly and oil receipts are approaching near-total delivery to export terminals, compared to the alarming losses of previous years when production sometimes plummeted to about 700 barrels per day.
“Today, largely due to these surveillance/security efforts, we have been able to ramp up production to about 1.8 million barrel per day. Importantly, the surveillance contract has been able to create direct employment for thousands of Niger Delta youths who were formerly agitators, providing a legitimate alternative to crime, and placing security back in the hands of the people who host the facilities.
“There is no doubt that we can do better. There are still a number of challenges, particularly as they concern accountability, transparency, and the effectiveness of certain surveillance frameworks.
“Recent public discourse suggests that crude oil theft still occurs at concerning levels, sometimes even under existing security arrangements. This underscores the need for continuous oversight and reform.”
He said the National Assembly has remained at the forefront of confronting the challenges in the oil sector and has through legislation, oversight, and appropriation, taken deliberate steps to strengthen Nigeria’s response to threats to our oil industry.
He said, “We have enacted and reviewed laws such as the Petroleum Production and Distribution (Anti-Sabotage) Act and other relevant statutes aimed at deterring pipeline vandalism while emplacing stringent penalties.
“We have also worked to strengthen institutions like the National Oil Spill Detection and Response Agency (NOSDRA), recognizing the need for improved monitoring and environmental accountability.
“Both are the fruits of comprehensive and deliberate policy actions that were enabled by the passing of the landmark Petroleum Industry Act (PIA). Some of the provisions of this act, like the Host Community Development Trust, made Corporate Social Responsibility a legal mandate and gave host communities a direct financial stake in the profitability of the oil sector.”
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