A Nigerian oil giant, Aiteo Eastern Exploration and Production Company (AEEPCO), has terminated the contracts of several security firms following accusations of theft, fraud, and criminal activity. However, the move comes as Aiteo grapples with significant financial losses and operational disruptions caused by crude oil theft.
The terminated contracts include Amotoi Global Services Limited, led by Barrister Clement Amunaboye, as well as contracts with Obiene M Obiene, Thomas Livingstone, and Christophere Ezekiel Enu.
Aiteo alleges that these entities engaged in “massive crude theft, high fraud and injurious criminal activity,” according to a statement released on Monday. Moreover, the company claims these actions resulted in “grave safety violations” and “unacceptable cumulative exposure” of its assets.
The statement further emphasizes the termination of all relationships and transactions with the aforementioned individuals and companies. Aiteo’s Group Managing Director, Victor Okoronkwo, expressed frustration at the situation, highlighting the financial and operational toll that crude theft has taken on the company.
“For years, our company and its stakeholders have borne the worst impact of the consequences of crude theft,” Okoronkwo said in the statement. “This speaks to the depth of the decay and the severity of the problem facing producers like us.”
Okoronkwo called for a “heightened, urgent and comprehensive escalation” of efforts to address the issue.
The termination of these contracts is a significant development in the fight against crude oil theft in Nigeria. In addition, the country loses billions of dollars annually due to this illegal activity, impacting its economy and hindering investment in the oil sector.
A Call for Stronger Measures
The incident underscores the need for more robust security measures in Nigeria’s oil and gas sector. The involvement of security firms entrusted with protecting facilities in such criminal activity raises serious concerns.
The Nigerian government and industry regulators must collaborate to implement stricter regulations and oversight mechanisms to prevent similar occurrences. This could involve increased scrutiny of security companies, improved intelligence gathering, and the deployment of advanced security technologies.
The decisive action taken by Aiteo sends a strong message that oil companies will not tolerate criminal activity within their operations. It is hoped that this will serve as a deterrent to other security firms and encourage them to operate with integrity.
While challenges remain, the termination of these contracts represents a positive step towards a more secure future for Nigeria’s oil and gas sector.
Source: The Will
