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  • Oil & Gas - News
  • Updated: September 08, 2022

Oil Theft: PENGASSAN Urges FG To Take Measures

Oil Theft: PENGASSAN Urges FG To Take Measures

In order to increase production in Nigeria, the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has urged proactive steps to reduce the high rate of oil theft and pipeline damage.

The call was made on Wednesday in Abuja during a press conference announcing PENGASSAN's new advocacy programme with the slogan "Chasing Oil Thieves and Vandals out of Business."

PENGASSAN's Awareness Campaign Programme, which aims to highlight the ills of oil theft and pipeline vandalism, will take place on Thursday, Sept. 8, in several zonal locations across the country.

Osifo warned that if after the association's lobbying there was no discernible change seen, it would be compelled to withdraw its workers.

He asked the government to take quick action against the criminality.

He expressed concern that Nigeria had been having trouble producing more than 1.8 million barrels per day as required by OPEC due to difficulties brought on by oil theft and pipeline damage.

He bemoaned the fact that many oil businesses were closing down their operations and ceasing production as a result of these current difficulties since they were unable to make ends meet and pay their employees' salaries.

“Our members are losing jobs in the service companies.

"Agip has literally shut down productions, Addax petroleum shut down its OML 124 completely, and Total OML 58 has challenges and shut down too, while SPDC was one of the worst hit as of today.

“This is the first time in years the crude oil price is hitting the roof and rising astrometrically and crossing hundred dollars per barrel in the international market.

“When you shut in a single barrel, you shut in a hundred dollars, when you shut in 10,000 barrels, you shut in 10,000 multiple by a hundred dollars,” he said.

On the issue, he stated that the association has previously approached the government, including business leaders, chiefs of security, and agencies, whereby it proposed some options to end the threat.

The association urged for responsible administration and pushed for the imposition of punishments against those in authority, the organisation's president stated while detailing some proposals the group made to the government.

He said that the group also promoted the adoption of cutting-edge technologies for monitoring control rooms and pipelines around the world, particularly in Qatar and Saudi Arabia.

The local chiefs should be given the authority to monitor the channels prior to proposed proactive steps, he added, and the three percent allotted for host towns should be expanded to five per cent.

He added that it was also recommended that security chiefs hold the security officers dispatched to the Niger Delta's creeks accountable and that anyone who compromised or derailed should be punished or imprisoned as a deterrent.

According to him, the engagement over time has not given any fruit or results rather the menace continues to bedevil the country.

“After the advocacy rally, our Central Working Committee will appraise the situation after one or two months.

"If there is no substantial or traceable progress made, the association may be forced to withdraw its workforce from productions.

“Government must wake up, we want to see tangible evidence and results.

"The rhetoric must stop. This is the time to practicalise the talks, government must develop muscle to tackle the menace, “ he said.

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