FG investigates theft in $1.1bn Rivers oil well

The federal government has commenced investigation on the largest oil and gas field financing transaction of about $1.1 billion, Oil Mining License (OML 17).

OML 17, which is owned by billionaire business tycoon, Tony Elumelu, is under investigation following the uncovering of an illegal oil bunkering facility connected to it.

The investigation was necessitated after the Nigeria Security and Civil Defence Corps (NSCDC) on Thursday, March 9, uncovered an illegal local refinery at Otamiri-Etche, Etche local government area of Rivers state.

It was learnt that the illegal refinery steals crude from OML 17 fields operated by Heirs Holding Oil and Gas Limited.

In 2021, Heirs Holdings acquired 45 percent of OML 17 from Shell Total and Eni.

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.

It was gathered that the perpetrators tapped into Heir 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.

Some sources said that Elumelu was disturbed by the report, adding that the menace had been ongoing for years, even before the field was acquired by Heirs Holdings.

A source, while speaking on the development, said that, “Suspected persons workings in the facility, locals, including the owner of the land being used for the illegal activities have been arrested for questioning.”

The NSCDC commandant in Rivers state, Michael Besong Ogar, while confirming the development, said that it was the first time of witnessing a new strategy of operations by illegal oil thieves in the country.

Ogar noted that, “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,.

“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 added.

It is worth noting that OML 17 contains fields such as Agbada, Obigbo, Obigbo North, as well as Otamini and Umuchem.

It also hosts facilities that can profuce 150, 000 barrels per day.

In addition, 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.

Source: TheStreetJournal | Read More from Thestreetjournal.org