Why Crude Oil Theft, Pipeline Vandalism Exist In Niger-Delta

The decision by the Federal Government to delay the implementation of the community engagement standards in Niger-Delta may have resulted in the spate of unwholesome activities in the region, an energy expert, Meka Olowola, has said.

He said the activities include pipeline vandalism, crude oil theft and other untoward practices in the region, adding that the development has slowed down oil production in Nigeria.

He said the inability of the government to review its strategy and approach to conflict resolution in the region, is having negatives consequence on the country’s oil earnings.

A Community Engagement Standards is a widely researched framework for consciously and equitably engaging host communities in the Niger- Delta.

He identified commitment to acceptable engagement standards across the value chain as a panacea to incessant conflicts in communities that play host to oil and gas exploration companies and counseled that Nigeria should enforce the much-needed discipline in the oil and gas sector, which according to him is currently marred with violence and corruption.

He stressed  the need for Federal Government to review the comprehensive standards and principles of community engagement put forward by sustainability inclined stakeholders in the sector, led by the Ministry of Petroleum Resources, Facility for Oil Sector Transparency and Reform (FOSTER II) in Nigeria, CSR-in-Action. He said standards are products of painstaking research and will help in laying solid structures to tackle community conflicts and reduce oil theft as well as illegal bunkering.

Olowola said the challenges facing both oil companies and communities in the Niger Delta region can be prevailed over with proper stakeholder engagement and communication. He stressed  that the need for oil companies to engage in multilayered dialogue with host communities and the government cannot be overestimated, saying the Community Engagement Standards gives insights as to how this can be achieved using real-life scenarios.

“The rising tension between oil companies in the upstream sector and their host communities call for a multi-stakeholder engagement approach. Companies need to see their host communities as business partners and as such must do everything possible to ensure that the relationship is mutually as beneficial as possible. The change of outlook will invariably impact the attitude of members of oil-producing states towards companies,’’ he said.

‘’Following the establishment of clear communication lines between all stakeholders, oil companies must proceed to launch sustainable and far-reaching CSR activities. The practice of CSR transcends charitable donations and companies need to obtain a full understanding of this fact which will change the conduct of firms across the nation. The Community Engagement Standards codifies the best approach to optimising the gains of the oil & gas sector,’’ he added.

Olowola decried the unending cases of pipeline vandalism in the  region, stating that it is inimical to all stakeholders as the culprits create lasting damages to their environment and put their lives at risk, while the oil-dependent economy of the nation suffers huge losses.

He maintained that the government must earnestly devise strategies to halt the practice before it snowballs into greater national issue. Olowola enjoined the oil companies to hearken to the demands of members of their host communities, saying he is aware of how difficult it could be, given that individuals have diverse interests.

Source: The Nation