Crude oil theft, petrol-piracy and illegal trade in fuel:an enterprise-value chain perspective of energy-maritime crime in the Gulf of Guinea

Abstract

The Gulf of Guinea (GoG) has developed into a global energy-maritime crime hotspot, with Nigeria being the epicentre of illegal oil-related maritime activities in the region. For several decades, scholars have sought to justify crude oil theft, petro-piracy and illegal fuel trade especially in the waters of Nigeria, in the context of greed-grievance. While that approach provides a basis for understanding the realities of illegal energy-maritime activities in the Niger Delta region of Nigeria, it does little to explain how the illicit activities have evolved into a global enterprise it is today, the dynamics of the business and the infrastructure that sustain the criminality. Against the backdrop of this limitation in existing theoretical underpinning of illegal energy-maritime activities in the GoG, this study adopts an enterprise-value chain model which, moving beyond the greed-grievance narrative, emphasises the primacy of both the enterprise and the marketplace (not players in the market) in explaining, and understanding the dynamics, complexities and persistence of crude oil theft, petro-piracy and illegal fuel trade in the GoG. The enterprise-value chain approach as adopted in the study, offers an advantage of interdisciplinary perspective, combining Smith’s enterprise theory of crime and Porter’s business management concept of value chain to understanding energy-maritime criminality in the GoG. The enterprise-value chain model sees the tripod of crude oil theft, petro-piracy and illegal trade in fuel as an organised crime; a well-structured economic activity whose business philosophy hinges on the provision of illegal goods and services. Such activities exist because the legitimate marketplace has limited capacity to meet the needs of potential customers. Within the enterprise-value chain framework, the study identifies, and analyses the dynamics of overlap, cooperation and conflict among the different players in the illegal energy-maritime industry as well as mutually beneficial relationships between formal and informal energy-maritime economies. Such an overlap is critical to understanding both the nature of the business and its sustaining value chain. The study concludes that current energy-maritime security architecture in the Gulf of Guinea does not capture the organised, enterprise nature of illicit offshore and onshore activities and its sustaining value chain, which highlights its inherent limitation viz-a-viz the region’s quest for energy-maritime security. There is therefore an urgent need to address this seeming gap as it determines significantly how the phenomenon is considered both for academic purposes and public policy. It is this obvious gap in both academic literature and policy on maritime security in the GoG that this study intends to fill. The study, in the context of its theoretical framework, develops a business approach to enhancing energy-maritime security in the GoG.