FG investigates $1.1bn illegal oil refinery

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An investigation is ongoing of an illegal oil bunkering facility connected to Oil Mining Licence 17.

 

According to the PUNCH ,the investigation was necessitated after the Nigeria Security and Civil Defence Corps, on Thursday, uncovered an illegal local refinery at Otamiri-Etche, Etche Local Government Area of Rivers State.

 

The illegal refinery, The PUNCH gathered, steals crude from OML17 fields operated by Heirs Holding Oil and Gas Limited.

 

In 2021, Heirs Holdings acquired 45 per cent of OML 17 from Shell Total and Eni in a transaction worth about $1.1bn.  At the point of acquisition, the field located at the north Port Harcourt produced just 27, 000 barrels per day. However, production rose to 40, 000 barrels per day seven months after acquisition.

 

Reports say the NSCDC was able to bust the oil bunkering gang following intelligence reports from local informants.

 

The perpetrators were said to have tapped into Heirs Holding Oil and Gas facility through the pipeline bulk delivery and stole crude oil through carefully constructed pipes to their illegal local refinery.

 

Further findings revealed that some insider involvement connected to the bunkering had been uncovered, and the NSCDC is currently interrogating workers both inside and outside the facility with the full support of Elumelu himself.

 

Sources close to the matter told The PUNCH that Elumelu was disturbed by the report, as the menace had been ongoing for years, even before the field was acquired by Heirs Holdings.

 

“Suspected persons workings in the facility, locals, including the owner of the land being used for the illegal activities have been picked up for questioning”, sources who claimed anonymity due to the sensitivity of the matter told The PUNCH.

 

The NSCDC Commandant in Rivers State, Michael Besong Ogar, confirmed the development.

 

He said it was the first time of witnessing a new strategy of operations by illegal oil thieves in the country.

 

The PUNCH also gathered that sponsors of the illegal refinery are currently being investigated and would be charged to court.

 

“I must confess that this is the first time of witnessing a well fabricated illegal refinery with such a wide range of pipes laid across the area, as you can see how big the land is, you can also imagine how unscrupulous people can be despite the continuous fight against illegal dealings in petroleum products.

 

“We have commenced intense investigation into the matter, and we will unravel the mystery behind this economic sabotage.

 

 

“The NSCDC has a clear statutory mandate to safeguard critical national assets and Infrastructures across the federation, we will not be deterred or distracted by the activities of oil thieves in the State. Without compromise we will go after them and ensure that the illegal dealings in petroleum products are reduced drastically in order to boost the nation’s economy again”, he said.

 

OML 17 contains fields such as Agbada, Obigbo, Obigbo North, as well as Otamini and Umuchem. It also hosts facilities that can output 150, 000 barrels per day. Gas production on the field is less than 50 million standard cubic feet per day, with estimated 2P reserves of 1.2 billion barrels of oil.

 

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Francis Ogwo
The young and goal driven writer and cinematographer started his journalism as a print journalist in Kaduna in 2005 writing for Kaduna Chronicles Newspapers, Liberator Newspapers where he became the South Bureau Chief. In 2008, he moved into TV production with an employment into Siverbird Television and Rhythm Fm as a Correspondent. He got certified by Independent Television Producers Association of Nigeria(ITPAN) in 2009. After five years of hardwork and training, he was employed as Associate Producer, Moments With Mo and subsequently Producer, Playground on HipTV. Francis currently majors in documentaries and high profile scripts for news and movies. He is currently a Senior Contents Producer at News Central TV

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