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Ex-Militants N5.6 billion Pipelines Security Contracts Face Imminent Termination

By on November 13, 2012
Oil-pipeline

Oil-pipeline

The contentious N5.6 billion pipeline surveillance contracts awarded to ex-Niger Delta militant leaders is at the verge of termination following rising oil theft.

It could be recalled that at the peak of militant activities in the Niger Delta, production was at 1.3 million barrels per day (bpd) all-time low.

However, output increased progressively – up to 2.7 million barrels per day when the controversial contract was awarded coupled with the amnesty programme.

Unfortunately, production has now dropped to 2.5 million barrels per day, significantly reducing the country’s revenue and recent sabotage leading to shut-ins.

With the surveillance contract seeming to be a waste, unconfirmed reports indicate that President Goodluck Jonathan is said to be considering the cancellation of the contracts.

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, owing to crude theft.

Several crude theft points were found on the facility.

According to a source in the oil industry, 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.”

A Presidency source said President Jonathan’s unwillingness to renew the contract is informed by the dismal performance of the ex-militants in Bayelsa and Rivers.

2 Comments

  1. Makeri

    November 13, 2012 at 8:50 am

    Giving contract to criminals is an act of criminality and corruption in side of FG. Mr. President ignored warnings from security expert just to favour his boys. OBJ yesterday spoke the TRUTH. REVOLUTION on the way.

  2. Nura Mohammed Kamfut

    November 13, 2012 at 7:28 pm

    Hope d terrorist will not go back 2 d creeks & continue wiz their terrorist activities. It was even wrong & unreasonable 4 d govt 2 enter into such contract 4 d protection of pipelines wiz d same people dat were destroying it thru bunkering & other forms of stealing d nation’s crude. Dat was one of d biggest mistake dis govt made & it will b very difficult 4 them 2 manage dis problem. Authorised security agents are d right people dat are suppose 2 tackle any form of criminal activities not d same criminals dat created d insecurity in d 1st place.