• Troops seize over one million litres of stolen crude, refined products
• FG, oil producers pledge sustainable crude supply to refineries
The Navy has decried the financial implications of conflicting court orders, bureaucracy and deficient documentation from the judiciary on arrested vessels, which costs the agency about $10,000 daily on maintenance and safety of arrested vessels.
However, troops seized over one million litres of stolen crude oil and illegally refined products, in a series of operations, within a week, to curb illegal activities in the Niger Delta, the Defence Headquarters (DHQ) has disclosed.
This was as the Federal Government and crude oil producers in the country committed to a sustainable supply of crude to Nigerian refiners under a market-determined pricing system.
Director of Legal Services, Nigerian Navy Headquarters, Andrew Ekokotu, lamented that the Navy bore the financial strain of maintaining arrested vessels, while giving instances where it faced legal action for either releasing or holding vessels based on contradictory mandates from different courts for up to eight months.
According to him, this legal quagmire not only complicates operational efficiency but also places undue burdens on Navy’s resources and personnel, with operational costs soaring into millions of naira for vessel custody and security.
He stated this, yesterday, at the 17th International Maritime Seminar for Judges, organised by the Nigerian Shippers’ Council (NCS) and the Ministry of Marine and Blue Economy, in collaboration with the National Judicial Institute in Abuja.
Ekokotu explained that each naval ship deployed to the location of the arrested vessels consumes not less than 33,000 litres of diesel every week as well as other costs in ensuring they do not sink.
He proposed reforms in the judicial process, advocating clearer guidelines on cost recovery mechanisms and expedited handling of maritime cases, to alleviate the financial burden on the Navy.
Federal High Court Judge, Olayinka Faji, confirmed the conflict between the state high courts and the federal high court’s jurisdiction concerning maritime contract disputes as it relates to the huge amount spent in maintaining arrested vessels, which he said was taking a toll on the ship owners, arrestors and the Navy.
A Senior Advocate of Nigeria (SAN), Mike Igbokwe, called on the National Assembly to provide budgetary allocation for the Navy to meet spending on logistics, as it is entitled to funds from the National Consolidated Fund.
He tasked the National Assembly to take care of expenses on the maintenance of arrested vessels.
The Senior Partner at Allen & Gledhill Singapore, Vivian Ang, highlighted the challenges faced by owners of arrested ships in dealing with claims such as damage, salvage, crew and personal injury, while also struggling with deciding between private and judicial sales to resolve claims effectively.
The crackdown by troops, said the Director, Defence Media Operations (DMO), Maj-Gen Edward Buba, at a briefing, yesterday, was part of the ongoing effort to combat oil theft and illegal refining in the country.
During the operation, troops denied the theft of oil valued at N1,127,229,890. They also destroyed 18 dugout pits, 30 boats, 49 storage tanks and 57 illegal refining sites.
They also recovered 66 cooking ovens, four drums, five speedboats, 15 vehicles, two tricycles, one generator and 11 mobile phones.
In the week under review, troops also killed 187 persons and arrested 183. They also rescued 109 hostages and apprehended 26 perpetrators of oil theft.
OIL Producers Trade Section (OPTS) of the Lagos Chamber of Commerce Industry (LCCI), at the instance of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), made the commitment during a virtual meeting convened by the NUPRC Chief Executive, Gbenga Komolafe.
In the meeting that focused on a status review of the Framework for Seamless Operationalisation of Domestic Crude Oil Supply Obligation Template, they agreed to concede to a mutually beneficial framework with a focus on ensuring that the local refineries were not strangulated with off-the-curve prices.
They mentioned that the meeting was part of efforts to effectively implement key sections of the Petroleum Industry Act(PIA), especially pricing and crude supply to the domestic refineries.
Komolafe said President Bola Tinubu was fully committed to providing a level playing ground for producers and refiners in the industry.
He emphasised the need for rule of engagement to ensure that the pricing model from the producers was not seen to be strangulating the domestic refineries.
“We need to have the price quotes every month. The Domestic Crude Oil Supply Obligation (DCOSO) converged with the nation’s energy security,” he said.
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