FROM LAND TO SEAA CURSE OF SYSTEMATIC CRIME CYCLE

ILLEGAL TRANSSHIPMENT PRACTICE IN THE GULF OF GUINEA

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

Storyline: From land to sea

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 LAUNDERINGCASE 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

• 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%.

Oil Industry In Nigeria: An Industry Of Prosperity?

THE POWER HOUSE

• Crude Petroleum• Petroleum Gas• Refined Petroleum

Poverty In NigeriaExtreme 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• Nigeria’s 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

• IT’S NOT RESOURCES CURSE• IT’S GOVERNENCE CURSE

Planned BehaviorPsychological Analysis

Attitude• Law enforcement

• Legal Consequence

Subjective Norm

• Community norm

• The banality of crime

Perspective

• Easy business

• Network centric crime

Oil Theft In NigeriaAn 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, oil-

industry 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 NigeriaAn executive summary

DO IT SAFELY

Source

A BUSINESS OF MANY

General Modus OperandiAn oil laundering

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

Final destination / Oil Terminal

Transshipment/STS Transshipment/STS

Transshipment/STS

Transshipment/STS

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 notA 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 money-laundering hotspots

WAIT IT’S NOT THE ENDA MORE COMPLICATED CURSE

MT KERALA

• Payload: 130.000 Ton crude oil• Lokasi terakhir : Anggola• Lokasi Transshipment :

57 KM Barat daya Nigeria

TRANSHIPMENT FROM

HIJACKED VESSEL

•Menghapus identitaskapal

•Memalsukankoordinat/AIS

Vessel Boarding

•Mematikan sistemnavigasi dan komunikasi

•Transfer muatan kecoastal tanker atau barge

Ship to ship transfer •Minyak dijual di pasar

gelap

•Dengan metodesebagaimana dijelaskansebelumnya

Selling

Transshipment Process from Hijacked Vessel

20% OF STOLEN OIL WERE SOLD TO

NIGERIAN NATIONAL PETROLEUM AGENCY

And it’s propelling Nigerian Political LiveA Governance Curse?