Sustainable Security Model for the Oil & Gas Industry in Nigeria

Risk Control Services, Lagos, Nigeria 1

Developing a sustainable security management model in the Oil & Gas Industry in Nigeria

By

Femi AjayiCEORisk Control Services Nigeria Ltd

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


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.

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


Oil & Gas Value Chain

Exploration & Production38.5 proven reserves (World Fact Book)

Exploring cheaper and cleaner fuelWorld 9th highest gas reserves

Refining & Marketing 4 Refineries and 22 depots

Oil & Gas in Nigeria


What security model is sustainable in this highly

complex industry


Threat Assessment

MACRO

These macro foundational threats are systemic and have collective impact on the society

as a whole.

MACRO and MICRO

Political ThreatPolitical Threat


1.Political instability2.Unity3.Electoral system4.Patriotism

Threat Assessment

EconomicThreat

EconomicThreat


1. Monocultural economy2. Economic mismanagement3. Abject poverty in the midst of plenty.

Threat Assessment

Socio - CulturalSocio - Cultural


Religious intoleranceUnemployment

Threat Assessment

Regulatory

Regulatory


Threat Assessment

MICRO


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

Kidnapping


Pipeline Sabotage


Oil Theft


Militancy


Environmental issues


Human Rights abuses



Present Security Model

InvestigationEnforce policies & procedures •Access Control

•Risk analysis•Monitoring

Armed protection


GAPS

Privatization of public security

Operational and ethical issues.

Limit the drive to professionalize the private security system


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


Steps to developing a Sustainable Security Model

1.Conduct a Comprehensive Review of the state of the security industry , then move to professionalize it2.Institute an industry wide legislation to establish standards and professionalize the industry3.Communicate the standards to all users of security4.Enforce standards through several agencies 5.Implement 6.Continuous Evaluation


Thank You

Risk Control Services Nig Ltd

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www.riskcontrolnigeria.com

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Sustainable Security Model for the Oil & Gas Industry in Nigeria