President of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Mr Babatunde Ogun, has blamed oil theft and pipeline vandalism on the poor funding of the security agencies.
Ogun expressed the view in Lagos on Thursday when he addressed members of PENGASSAN and those of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).
He urged the Federal Government to provide adequate funding and equipment for the security agencies with responsibility to protect Nigeria’s waterways.
President of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), Mr Babatunde Ogun, has blamed oil theft and pipeline vandalism on the poor funding of the security agencies.
Ogun expressed the view in Lagos on Thursday when he addressed members of PENGASSAN and those of the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).
He urged the Federal Government to provide adequate funding and equipment for the security agencies with responsibility to protect Nigeria’s waterways.
“I believe that there is a high level collaboration among the security agencies, politicians and highly placed Nigerians in the theft of crude oil, “ he said.
The union president said that members of the two unions had given the government a 60-day ultimatum to ensure the security of oil pipelines and gas installations.
“In view of the looming danger to the survival of the oil and gas industry and by extension the nation’s economy, workers in the oil and gas industry have issued a 60-day ultimatum to the Federal Government.
“Government should ensure ultimate security for all oil and gas installations, especially pipelines in the country, “ Ogun said.
He said that the workers decided to issue the ultimatum considering the loss of investments, income and jobs as a result of crude oil theft.
Ogun said that crude oil theft had reduced the production of multinationals by more than 60 per cent and led to shortages, shut-in, high cost of operation and threats to job of workers as well as growth of investments.
The President of NUPENG, Mr Igwe Achese, urged the government to provide adequate security for oil and gas installations otherwise the cost of production of the International Oil Companies would rise.
“Many multinationals are divesting from the nation’s onshore assets due to insecurity, which increases their cost of production.
“Shell, Chevron, Addax and Petrobras are divesting and this endangers the jobs of our members in these companies, “ Achese said.
He said that apart from losing crude and reducing productions, oil companies took care of the cost of repairs of pipeline damage by crude oil vandals.
“They also take care of the costs of the environmental clean-up caused by these economic saboteurs.
“All these add up to their cost of production, “he said.
Achese cautioned the government to step up adequate security in the next two months to prevent the unions from withdrawing their members from oil and gas installations.
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