FROM LAND TO SEA

A CURSE OF SYSTEMATIC CRIME CYCLE

ILLEGAL TRANSSHIPMENT PRACTICE IN THE GULF OF GUINEA

Storyline: From land to sea

Background

Resource
Curse
Inequality
Poverty

Step 1: Oil Theft

and Hijacking
A Culture
Government
backed
operation

Step 2:
Transshipment
Pipeline
Barge
Coastal Tanker

Step 3: Oil
Laundering
Bunkering
CO Fraud

Why Transship
Legal STS
Due to port handling capability
Replenishment at sea (military)
Amphibious operation (military)
Illegal STS
Legal Goods CO Fraud
Illegal Goods

NORMAL TRANSSHIPMENT PROCESS

Legal Instrument

RESOLUTION MEPC.186(59)
OIL CARGO must have an approved STS
operational manual based on Chapter 8
STS checklists and Risk Assessment procedure

CONDUCTING SHIP TO SHIP BUSINESS

OIL LAUNDERING
CASE STUDY NIGERIAN RESOUCE CURSE

Resource curse in Nigeria

2nd LARGEST ECONOMY IN AFRICA

5TH LARGEST ECONOMY In The World By 2050 (3g
Citi Group)
13th Largest Oil Producer
A Market Of 120 Million People

Oil Industry In Nigeria:

An Industry Of Prosperity?

Production and lifting : 2.8 million barrels of oil a

day
Joint ventures account for approximately 95% of
production
Mostly controlled by Shell, Chevron, BP
independent account for the remaining 5%.

THE POWER HOUSE

Crude Petroleum
Petroleum Gas
Refined Petroleum

Poverty In Nigeria
Extreme poverty in oil-rich country

70% OF NIGERIAN LIVE ON UNDER 1USD A DAY (Amnesty

International)
43% Have No Access To Clean Water
Oil Price Very Cheap 3.5 USD/Gallon Or 11.300 IDR/Liter
Nigerias oil wealth gets siphoned off by 1% OF THE POPULATION
Since 1960 it is estimated that 300 to 400 billion dollars has been
stolen by corrupt government officials

THE POVERTY
ITS NOT RESOURCES CURSE
ITS GOVERNENCE CURSE

Planned Behavior
Psychological Analysis

Attitude

Law enforcement
Legal Consequence

Subjective
Norm

Perspective

Community norm
The banality of
crime

Easy business
Network centric
crime

Oil Theft In Nigeria

An executive summary

Between 2009-2009 cost about 10.9 bio USD

In 2014 oil theft may cost Nigeria as much as $8 billion a year,
A business of many (politicians, security forces, militants, oilindustry staff, oil traders and members of local communities)
Blend different grades of oil
Final destination US, CN, west sahara countries, brazil

OIL THEFT EST

Oil Theft In Nigeria

An executive summary

DO IT SAFELY

Source

A BUSINESS OF MANY

General Modus Operandi

An oil laundering
Transshipment/STS

Transshipment/STS Transshipment/STS

Taping from
pipeline

Load into
Barge

Transport
and stored
using small
Tanker

Load into
coastal
tanker to the
high seas

Load info
ocean going
tanker

Transshipment/STS

Final
destination /
Oil Terminal

TRANSHIPMENT MODEL
FROM OIL THEFT (MODEL 1)
Pipeline Barge (River) Small Tanker (coastal)
Bigger Tanker (High Seas)

TRANSHIPMENT MODEL
FROM OIL THEFT (MODEL 2)
Pipeline Small Tanker Bigger Tanker

TRANSHIPMENT MODEL
FROM OIL THEFT (MODEL 3)
Pipeline Barge + Tug Boat Foreign Waters

GO INTERNATIONAL

offload all of its cargo at a single refinery;

offload parts of its cargo at different refineries
offload all or part of its cargo into storage
transfer all or part of its cargo STS to another
vessel
transfer all or part of its cargo STS to multiple
vessels.

Feeling Guilty? Off course not

A cycle of global sin

Blending and storage practices + CO Fraud Export

And then launder their money
Via bulk cash smuggling, delayed deposits, heavy use of
middlemen, shell companies and tax havens, bribery of
bank officials.
Dubai, INDONESIA, India, Singapore, the United States,
the United Kingdom and Switzerland as moneylaundering hotspots

WAIT ITS NOT THE END

A MORE COMPLICATED CURSE

TRANSHIPMENT FROM

HIJACKED
VESSEL
MT KERALA
Payload: 130.000 Ton crude oil
Lokasi terakhir : Anggola
Lokasi Transshipment :
57 KM Barat daya Nigeria

 Menghapus identitas
kapal
Memalsukan
koordinat/AIS

Vessel
Boarding

Ship to ship
transfer
Mematikan sistem
navigasi dan komunikasi
Transfer muatan ke
coastal tanker atau barge

Minyak dijual di pasar

gelap
Dengan metode
sebagaimana dijelaskan
sebelumnya

Selling

Transshipment Process from Hijacked Vessel

20% OF STOLEN OIL WERE SOLD TO

NIGERIAN NATIONAL PETROLEUM AGENCY

And its propelling Nigerian Political Live

A Governance Curse?