Impact of Oil and Gas Theft in Niger Delta of Nigeria

Running head: IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
Critical Analysis of the Impact of Oil and Gas Theft in the Niger Delta of Nigeria
Name of the University:
Name of the Student:
Authors Note:

1IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
Acknowledgement
This research was supported/partially supported by the university professors and my fellow
classmates.I also thank mybatch mates and librarians who provided insight and expertise that
greatly assisted the research, based on which necessary interpretations/conclusions has been
gathered from this paper.

2IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
Abstract
Oil theft has turned out to be an accepted form of militant activities there has been increasing
worrisome incidence report regarding “illegal oil bunkering” and unauthorized local refineries in
Niger Delta. The aim of current research is to carry out a critical analysis of the oil theft impact
in the Niger Delta of Nigeria. The paper revealed that the government along with multinational
oil organizations operating in the Niger Delta region at every level with several levels in several
state of Niger Delta. Moreover, a huge amount of resources has been sent in order to equip the
state security agents in order to secure the oil facilities along ith important personnel against the
conducts of the oil theft in Niger Delta region. From findings of the paper certain
recommendations have been provided the establishment of technical safeguards as a part of pipe
covers along with burying them within the grounds against the oil and gas theft in Niger Delta
region which can turn out to be nonalternative solutions.

3IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
Table of Contents
1. Introduction......................................................................................................................6
1.1. Research Purpose......................................................................................................6
1.2. Research Problem.....................................................................................................6
1.3. Research Aim, Questions and Objectives.................................................................7
2. Literature Review............................................................................................................8
2.1. Introduction...............................................................................................................8
2.2. Oil and Gas Theft and Illegal Bunkering524............................................................9
2.3. Operational Mechanisms and Actors of Oil and Gas Theft in Niger Delta............10
2.4 Loss of Oil due to Criminal activities......................................................................11
2.5. Understanding Implications of Oil and Gas Theft..................................................12
2.6. Efforts Taken by Nigerian Government to Deal with Oil and Gas Theft...............15
2.7. Research Gap..........................................................................................................16
2.8. Summary.................................................................................................................16
3. Research Methodology..................................................................................................17
3.1. Introduction.............................................................................................................17
3.2. Research Onion.......................................................................................................18
3.3. Research Design.....................................................................................................19
3.4. ResearchApproach..................................................................................................19
3.5. Research Philosophy...............................................................................................20

4IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
3.6. Data Collection Method..........................................................................................20
3.7. Data Analysis Method............................................................................................21
3.8. Ethical Considerations............................................................................................22
3.9. Summary.................................................................................................................23
4. Data Analysis.................................................................................................................23
4.1. Theme 1:.................................................................................................................23
4.2. Theme 2:.................................................................................................................26
4.3. Theme 3:.................................................................................................................29
4.4. Theme 4:.................................................................................................................30
5. Findings and Discussion................................................................................................32
5.1. Theme 1: To analyze the reasons behind illegal oil thefts on the Land and High sea
bunkering in Nigeria......................................................................................................................32
5.2. Theme 2: Economic Perpetrators and Operators of These Thefts..........................34
5.3. Theme 3: Financial Loss of Revenue Takes Place as A Result of Massive Theft
and Vandalism...........................................................................................................................36
5.4. Theme 4: Steps That Can Be Taken by The Government in Addressing the Spade
of Oil and Gas Theft in Niger Delta..........................................................................................38
6. Conclusion.....................................................................................................................40
6.1. Conclusion..............................................................................................................40
6.2. Linking with the Objectives....................................................................................41

5IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
6.3. Future Research......................................................................................................43
7. Recommendations..........................................................................................................43
8. Reflection.......................................................................................................................46
References..........................................................................................................................49

6IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
1. Introduction
1.1. Research Purpose
The crude oil theft turnnd out to attain increased media in Nigeria and the downstream
theft of crude oil has confinedwithin this radar. Along with this, downstream oil and gas theft has
affected the income of federal government along with 90% of the export offerings (Akpomera
2015). The objective of the research is to evaluate the impact of oil and gas theft in the economy
and financial situation of Niger Delta in Nigeria. It will also analyse the ways in which the
financial loss of revenue along with economic disruption takes place because of “pressure
tapping” theft that involves evaluating a high-pressure operational pipeline along with diverting a
fraction of oil and gas flow (Albert, Amaratunga and Haigh 2018). Moreover, the purpose of the
research is also to explain the ways in which “bunkering” takes place in which a fraction of oil
and gas is loaded within the ship that has becomesynonymous with oil theft.
1.2. Research Problem
Oil theft has turned out to be an accepted form of militant activities there has been
increasing worrisome incidence report regarding illegaloil bunkering and unauthorized local
refineries in Niger Delta (Boris 2015). It is also observed that “oil theft or bunkering” siphons off
the major contributor of Nigerian economy for private gains. Oil theft along with other insecurity
spate did not continue but become more pronounced. It was also revealed that illegal oi
bunkering in the Niger Delta region serves among the major issues in Nigeria that has grown in
leaps and bounds and the only way to deal with this is crime is to recognize the people
responsible for the same (Ejiba, Onya and Adams 2016). A recent report has declared that the
nation has lost around $ 20 billion yearly because of crude oil theft. Such increase on crude oil

7IMPACT OF OIL AND GAS THEFT IN NIGER DELTA OF NIGERIA
and gas theft has caused major concern for Nigerian economy along with financial loss of
revenue. Issues regarding oil and gas theft within the nation has turned out to be a drastic issue in
absence of collaboration or activities of saboteurs (Nriagu et al. 2016). It was also revealed that a
major threat to Niger region’s oil industry took place from activities of cartel or mafia.
Considering such research problem, the current research will focus on analyzing the ways in
which theft of crude oil can be eradicated in the upcoming years and the ways in which issue of
oil theft and crude oil pipeline tampering to deal with financial losses (Obida et al. 2018).
1.3. Research Aim, Questions and Objectives
The aim of current research is to identify the amount of oil that is lost to criminals by
Nigeria and thereby evaluate the different activities that might be undertaken by the government
in order to change the situation.
The objectives for undertaking the research are:
 How much oil is Nigeria losing to criminals?
 Who are the perpetrators and operators of these thefts?
 What measures can be taken by the government in addressing the spade of oil and gas
theft in Niger Delta?
The objectives those are to be met through completion of this current research are elaborated
below:
 To analyze the reasons behind illegal oil thefts[ Land and High sea] bunkering in Nigeria
 To analyze the implications of such massive theft and vandalism.
 To evaluate the steps that can be taken by the government in addressing the spade of oil
and gas theft in Niger Delta.