Identifier
Created
Classification
Origin
03ABUJA1333
2003-08-06 16:33:00
CONFIDENTIAL
Embassy Abuja
Cable title:  

OBASANJO TALKS TOUGH ON OIL THEFT AND WARRI CRISIS

Tags:  EPET PINS PGOV ASEC NI 
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This record is a partial extract of the original cable. The full text of the original cable is not available.
C O N F I D E N T I A L SECTION 01 OF 02 ABUJA 001333 

SIPDIS


E.O. 12958: DECL: 08/06/2013
TAGS: EPET PINS PGOV ASEC NI
SUBJECT: OBASANJO TALKS TOUGH ON OIL THEFT AND WARRI CRISIS

REF: A. ABUJA 1328

B. ABUJA 1286


Classified by Charge d'Affaires, a.i. Dawn M. Liberi; reasons
1.5 (b) and (d).

C O N F I D E N T I A L SECTION 01 OF 02 ABUJA 001333

SIPDIS


E.O. 12958: DECL: 08/06/2013
TAGS: EPET PINS PGOV ASEC NI
SUBJECT: OBASANJO TALKS TOUGH ON OIL THEFT AND WARRI CRISIS

REF: A. ABUJA 1328

B. ABUJA 1286


Classified by Charge d'Affaires, a.i. Dawn M. Liberi; reasons
1.5 (b) and (d).


1.(C) President Obasanjo summoned Charge Liberi and other
diplomatic chiefs of mission to his office August 6 for a
short briefing on the theft of oil in the Niger Delta. The
extraordinarily short (25 minutes) meeting gave the
diplomatic corps a warning of imminent security force action
in the Delta, most probably concentrated in the Warri region.




2.(C) During the short briefing using power-points, the
President highlighted the fact that the volume of crude oil
lost to theft has hit levels not seen since 1999, the last
year of military rule. As a result, Nigeria is losing over
$3 billion a year, and is having difficulty meeting its OPEC
oil production quota. This theft is carried out by organized
groups who siphon crude oil from pipelines to coastal barges
and ocean-going tankers. Nigeria cannot afford this
hemorrhaging of national revenues, he declared. Noting that
this illegal trade is protected by well armed militants,
Obasanjo warned that Nigerian security forces may soon have
to "disarm" them.


3.(C) The Charge asked the President if efforts were being
made to prosecute the perpetrators of this large-scale,
organized oil theft. After turning to his advisors, he
responded that the government was indeed prosecuting
offenders and that a "task force" was being established for
this purpose. The Charge also asked about his prior day's
meeting with a group of traditional leaders from the
oil-producing South-South region, which he proclaimed a great
success; "they agreed with me and will cooperate" in attempts
to curb oil theft.


4.(C) Another diplomat queried the President on where the
stolen crude oil was being sold, to which he replied "oil
refineries in Cote d'Ivoire and Cameroon."


5.(C) According to Ijaw national leader Chief Edwin K. Clark,
a group of South-South traditional rulers and youth leaders
was summoned to the Presidential Villa August 5 for a meeting
on oil theft and pipeline vandalization. In an August 6

meeting with CRO, Clark cited the President's quote of over
USD three billion per year as the annual cost of oil stolen
and claimed Obasanjo called upon the community leaders to
assist the federal government in suppressing such crimes.


6.(C) According to Clark, the President's meeting started
with the viewing of a "video" on bunkering activity, showing
the barges, oil tankers, valves and hoses/pipes used to tap
into Shell and Chevron's pipelines and flow stations.
(Comment: This was probably the slide show of surveillance
photographs taken and assembled by Shell and given to the
President recently. End Comment) Clark commented that the
photos showed that this activity is not orchestrated by
simple youths in the oil swamps but rather by powerful and
sophisticated "barons" capable of marshaling resources like
ocean-going oil tankers. Nevertheless, the Ijaw chief
conceded that "the boys" (his term for the Ijaw militants of
the Federated Niger Delta Ijaw Communities--FNDIC) are a
party to some of the oil theft.


7.(C) After the video presentation, Obasanjo discussed how
the communities could play a helpful role in curbing the loss
of oil. Clark and other ethnic leaders proposed community
patrols to find and detain anyone attempting to tap into oil
companies' pipelines or flow stations. According to Clark,
the President and ethnic leaders assembled agreed to create
community-level watch groups, headed by community chairmen
and involving youth such as the Ijaw militants of Warri,
provided that the Niger Delta Development Commission (NDDC)
support these community patrols in cash and in kind. The
Chairman of the NDDC, Onyema Ugochukwu, and his acting
deputy, Timi Alaibe, were at the meeting and agreed to fund
the community patrol initiative, said Clark.


Warri Notes
--------------


8.(C) Turning to the recent upsurge in violence in the Warri
riverine area, Clark downplayed the significance of the
August 2 Itsekiri attacks on three Ijaw villages, claiming
these were "small villages" and revealing that residents of
the Ijaw village near the Warri Refinery had been involved in
the theft of oil. Clark stated he had met with the Ijaw
youth militants (FNDIC) immediately after the August 2
attacks and persuaded them to refrain from engaging in
retaliatory strikes, absent additional Itsekiri provocations.




9.(C) In an August 6 meeting with ECONCONS and CRO, NDDC
Acting Managing Director Timi Alaibe confirmed the plan to
create local community patrol committees that the NDDC will
compensate. He characterized this plan as one of three parts
of the larger security strategy for the Niger Delta that
President Obasanjo began unveiling at the August 5 meeting.
The second element is the creation of a federal security task
force, comprised of police, army, navy and the NDDC, which
will attempt to restore peace and security in the Warri
region first. The third element is an intensified effort to
find a political solution to the Warri crisis. Alaibe
acknowledged that the NDDC's role in supporting community
patrol committees will call for significant new funds for the
already strapped Commission, but he claimed that President
Obasanjo has pledged to provide supplemental funding.


Comment
--------------
10.(C) President Obasanjo appears to be confounding two
separate security issues -- the theft of oil in the Delta and
the rise of ethnic militancy. Although there is overlap, as
the Ijaw militants are clearly involved in oil theft, the
threats are distinct. Obasanjo may view it as expedient,
however, to crack down on the militants of Warri under the
guise of fighting oil bunkering crime. The initiative to
create community-based patrol groups may be little more than
fluff in light of the ominous warning of a security crackdown
but, if serious, could be counter-productive. Such an
attempt to use economic incentives to control belligerent
youth involved in oil theft could easily be transformed into
an extortion scheme by the militants, such as occurred to oil
companies' well intentioned plans to improve security in the
swamps through funding of community youth "home guards."
LIBERI