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Oil firms sourcing diesel from illegal refineries, Tantita Security alleges

Claims Spark Debate at Nigeria Oil and Gas Energy Week Conference in Abuja

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Tantita Security Services Nigeria Limited has alleged that several oil companies are purchasing refined Automotive Gas Oil (AGO), commonly known as diesel, from illegal refineries within host communities in the Niger Delta region. These assertions were made during the Nigeria Oil and Gas Energy Week Conference in Abuja, and notably, no representatives from the oil firms present at the event contested the claims.

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Tantita, a Warri-based security firm specialising in oil and gas sector security, currently provides services to the Nigerian National Petroleum Company Limited (NNPCL). Speaking at a session titled “Exploring Nigerian Content Solutions to Meet Energy Demand,” the firm’s Executive Director of Operations and Technical, Captain Warredi Enisuoh, stated that illegal refineries produce substantial quantities of diesel, with many downstream operators among their clientele.

Enisuoh elaborated, “Why is there no scarcity of diesel while there is a scarcity of PMS (Premium Motor Spirit, commonly known as petrol)? The story is simple, most of the diesel you buy is produced by the communities. About 90 per cent of the diesel in fuel stations is produced by these local communities. It will also interest you to know that even the oil companies patronise these local communities.”

He further suggested that the clampdown on illegal refineries by Tantita and other security agencies has contributed to the recent increase in diesel prices. “The reason why the price of diesel is high today is because of the efforts of private security companies like Tantita Security Services. We have been able to significantly reduce the operations of these illegal refineries, thereby affecting supply and pushing prices up,” he explained.

Enisuoh called for a greater focus on local communities to provide Nigerian content solutions to meet energy demand, particularly in infrastructure. He maintained that without the intervention of security agencies, the illegal production of diesel would continue unabated.

The discussion took a dramatic turn when it was revealed that, on April 10, 2024, NNPCL announced the apprehension of a tugboat transporting suspected illegally refined diesel by Tantita operatives. The tugboat, Aya Oba Olori II, was intercepted while being escorted by a marine police boat in Rivers State. Five individuals on board were detained and are currently under interrogation.

Meanwhile, on the sidelines of the NOG conference, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, led Nigeria’s delegation in a meeting with the African Petroleum Regulators Forum. Komolafe underscored the forum’s commitment to collaboratively harnessing Africa’s substantial oil and gas reserves, estimated at 125 billion barrels of crude oil and 620 trillion cubic feet of natural gas.

He noted, “Today marks a significant milestone in our collective journey towards fostering a more collaborative, innovative, and sustainable petroleum industry in Africa. The establishment of AFRIPERF signifies our commitment to overcoming common challenges and seizing opportunities to achieve our national aspirations in developing and utilising our hydrocarbon resources.”

Komolafe also highlighted Africa’s potential in green and blue hydrogen, solar, wind, biomass, and critical minerals for clean energy technologies, emphasising the continent’s young and dynamic population as a significant economic asset.

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