Sustainable Security Model for the Oil & Gas Industry in Nigeria


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Conference presentation given on September 18th, 2013 by Femi Ajayi, CEO of Risk Control Services Nigeria Ltd.

Published in: Business, Economy & Finance
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  • well detailed piece with simplicity for easy absorption and implementation. Hope it will get proper attention from right quarters to effect the awareness.
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  • Great Presentation! I hope the security model proposed will be adopted as there truly is need for a paradigm change in security management in Nigeria.
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  • Informative; an hallmark of a seasoned professional
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  • Wonderful Presentation. I hope government will structure and enforce the standard required for the security industry.
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  • Since the discovery of oil in 1956, Nigeria has not been the same. The discovery has brought tremendous benefits. Several billions of naira worth of investments have been sunk in the industry and the country has reaped over $400 billion in revenue from this resource. It is however also fair to say that, it has also brought untold hardship, pain which has made a lot of people to wonder. Is it a curse or a blessing……………. People say this because We’ve gone from using security officers with a major focus on access control functions in years past to very elaborate electronic systems as an integral part of security efforts today. Security needs have increased 10 fold in today’s world requiring a more comprehensive protection of asset strategies & system.
  • Nigerias democracy is struggling. The country has fought a civil war, experienced several years of military dictatorship mainly due to do or die struggle to capture power amongst the various ethnic groups in the country. 2015 is approaching…….. In protecting their assets, the oil companies have fully integrated the public security forces into their protection program By relying on forces that they cannot fully control, and whose record of frequent abuse and ill-discipline is well documented, oil companies have become part of local political struggles. Local communities make little or no distinction between oil companies and the public security forces used to protect their operations. Often times they are seen as accessories to what they consider as state sponsored violence on them
  • Nigerias economy is monocultural. Everything depends on oil. Even though the country has reaped tremendous income overtime – over $400b, the money has basically been frittered away. It would have been best used it as a catalyst to grow the economy. Many people believe that it has been a curse and not a blessing. The masses see this brazen display of wealth amongst the about 1% of the population mainly politicians and their cronies that seems to be benefitting more from the oil wealth. This has led to resentment of both government and oil companies and has fueled a lot of the crime experienced by oil companies.
  • The tension generated in the struggle for political power and mismanagement of the economy has given rise to certain social malaise like religious intolerance
  • To successfully protect its assets oil companies require highly skilled security personnel to tackle the various security and safety challenges. However, a coherent legislation to promote security standard is virtually non existent. The security industry is being regulated as a guard industry. In the absence of standards, the IOCs which are used to certain minimum standards basically just self regulate.
  • To date, the oil companies, more than any other industry in Nigeria, have relied to a large extent on public security forces for their protection, but this is increasingly supplemented by the use of local and international PSCs, particularly for guarding and risk analysis. Virtually all levels of public force, including the military, have been integrated into the day-to-day security arrangements of the oil industry to a degree where it is often difficult to determine where public policing ends and private security begins. In the oil industry in Nigeria, there appears to be a haphazard combination of security arms working to address the physical threats to the industry. This makes it difficult to be effective. The lack of a seamless integration of efforts and strategy is producing collateral issues and can create major security gaps.
  • The reliance on GSF for armed private security services raises a number of operational and ethical challenges. As mentioned above, the GSF has often been accused of using undue force, and whilst in the employ of PSCs the exact division of authority between private security guards and the police is difficult to establish definitively. While the PSC supervisor is in principle responsible for operations in relation to clients, the police remain answerable to their commander and retain legal authority. This is a source of tension and concern and the ability of PSCs to manage police officers depends to a large extent on informal arrangements and their capacity to develop well-integrated procedures, joint training, and close operational coordination with the MoPol Military - Government Security Force (GSF)   Military forces, or Government Security Forces (GSF), are also increasingly used to protect oil operations, often defined as national key assets. Most commonly, this is as a supplement to the levels of security discussed previously. GSF are allocated directly to the companies, who pay an administrative fee to the commanders and a direct stipend, as well as food and accommodation, to the soldiers. The oil companies also frequently supply and maintain the equipment, vehicles, and boats of the GSF. In highly conflictual situations, the companies use GSF more directly to provide guarding at sites, such as flowstations and terminals, and the Navy is also used to supply operations in the swamp and offshore. As the situation in the Delta deteriorates, the number of GSF will increase
  • A sustainable security model requires this three-prong approach to address all the challenges. Instead of dealing with threats within the oil and gas industry in isolated pockets, a systematic approach can more effectively target the problem areas, result in a wiser allocation of resources, produce higher success rates in minimizing threats and their effects, and see continued improvements into the future.
  • 1. A comprehensive review requires executives to look at, Past security challenges to the assets—both internally and externally Effectiveness of policies and procedures that are in place The effectiveness of security strategies and security measures, etc. 2. Analyzing the threats means looking at internal threats, external threats, various types of threats, what dangers they represent and how to better prepare for them. 3. Creating prevention strategies are necessary to avoid the threats and minimize their effects. 4. Having proper implementation steps of the prevention strategies is key and evaluating their effectiveness should be an ongoing effort.
  • Sustainable Security Model for the Oil & Gas Industry in Nigeria

    1. 1. Risk Control Services, Lagos, Nigeria 1 Developing a sustainable security management model in the Oil & Gas Industry in Nigeria By Femi Ajayi CEO Risk Control Services Nigeria Ltd
    2. 2. Presentation outline • Protecting assets in Nigerias oil industry • Value of oil & gas in Nigeria • Threat Assessment • The present security management model • Gaps within this model • Steps in developing a sustainable security management model Risk Control Academy Lagos, Nigeria 2
    3. 3. Risk Control Services, Lagos, Nigeria 3 Protecting Assets Protecting assets in the oil & gas industry in Nigeria is a daunting task in view of the criticality of this commodity to our economy and national security.
    4. 4. Risk Control Services Lagos, Nigeria 4 Value of the Petroleum industry The petroleum industry is the main generator of GDP in the country. The industry accounts for 95% of its foreign exchange earnings and its share of GDP has ranged between 25 and 30 per cent in recent years. Nigeria has proved reserves of oil at 38.5 billion barrels. (World Fact Book) Nigeria has the world’s 8th largest proven natural gas reserves Clearly the petroleum industry is the bedrock of our national economy and critical to our national security. Oil & Gas in Nigeria
    5. 5. Risk Control Services Lagos, Nigeria 5 Oil & Gas Value Chain Exploration & Production 38.5 proven reserves (World Fact Book) Exploring cheaper and cleaner fuel World 9th highest gas reserves Refining & Marketing 4 Refineries and 22 depots Oil & Gas in Nigeria
    6. 6. Risk Control Services Lagos, Nigeria 6 What security model is sustainable in this highly complex industry
    7. 7. Risk Control Academy Lagos, Nigeria 7 Threat Assessment MACRO These macro foundational threats are systemic and have collective impact on the society as a whole. MACRO and MICRO
    8. 8. Political ThreatPolitical Threat Risk Control Academy Lagos, Nigeria 8 1.Political instability 2.Unity 3.Electoral system 4.Patriotism Threat Assessment
    9. 9. Economic Threat Economic Threat Risk Control Academy Lagos, Nigeria 9 1. Monocultural economy 2. Economic mismanagement 3. Abject poverty in the midst of plenty. Threat Assessment
    10. 10. Socio - CulturalSocio - Cultural Risk Control Academy Lagos, Nigeria 10 Religious intolerance Unemployment Threat Assessment
    11. 11. RegulatoryRegulatory Risk Control Academy Lagos, Nigeria 11 Threat Assessment
    12. 12. MICRO Risk Control Academy Lagos, Nigeria 12 The micro threats are symptoms of the macro threats just discussed. They continue to manifest in the entire oil & gas value chain in form of criminality
    13. 13. Kidnapping Risk Control Academy Lagos, Nigeria 13
    14. 14. Pipeline Sabotage Risk Control Academy Lagos, Nigeria 14
    15. 15. Oil Theft Risk Control Academy Lagos, Nigeria 15
    16. 16. Militancy Risk Control Academy Lagos, Nigeria 16
    17. 17. Environmental issues Risk Control Academy Lagos, Nigeria 17
    18. 18. Human Rights abuses Risk Control Academy Lagos, Nigeria 18
    19. 19. Risk Control Academy Lagos, Nigeria 19 Present Security Model Investigation Enforce policies & procedures •Access Control •Risk analysis •Monitoring Armed protection
    20. 20. Risk Control Academy Lagos, Nigeria 20 GAPS Privatization of public security Operational and ethical issues. Limit the drive to professionalize the private security system
    21. 21. Risk Control Services, Lagos, Nigeria 21 A SUSTAINABLE SECURITY MODEL Requires a Systemic Approach involving key stakeholders •Government •All users of security, oil & gas, manufacturing, aviation, maritime, Financial, IT, Government security agencies etc •Communities •Security professional bodies
    22. 22. Risk Control Services, Lagos, Nigeria 22 Steps to developing a Sustainable Security Model 1.Conduct a Comprehensive Review of the state of the security industry , then move to professionalize it 2.Institute an industry wide legislation to establish standards and professionalize the industry 3.Communicate the standards to all users of security 4.Enforce standards through several agencies 5.Implement 6.Continuous Evaluation
    23. 23. Risk Control Academy Lagos, Nigeria 23 Thank You Risk Control Services Nig Ltd You can download this presentation on