Petrol Theft and Kidnapping off Gulf of Guinea Causing Headache for Tanker Owners

“The area, spanning most of Africa’s largest oil-producing countries like Nigeria, Angola, Gabon, Ghana and Equatorial Guinea, extends from Angola to Liberia….

The pirates usually target vessels conveying refined products rather than those transporting crude oil”.

The tranquillity in the Gulf of Guinea, which lies off West Africa, has given way to turbulence lately on account of pirate attacks, compelling owners of oil tankers to reconsider their choices on a major transit route.

The area, spanning most of Africa’s largest oil-producing countries like Nigeria, Angola, Gabon, Ghana and Equatorial Guinea, extends from Angola to Liberia.

No fewer than six raids involving pirates boarding oil product tankers were recorded in the first half of November, according to figures from the International Maritime Bureau Piracy Centre.

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The pirates usually target vessels conveying refined products rather than those transporting crude oil.

A majority of the raids entailed abducting members of the shipping crew for ransom aside moving the oil to another vessel for sale on the black market.

There is frequent movement of tankers with refined oil products across West African waters because the region relies heavily on fuel import.

“It depends on the owner right now. But this time of the year after the monsoon season, typically sees a pick-up in piracy activity, and even the demurrage play in a stagnating market might not be enough to attract some owners,” a shipbroker told S&P Global Platts.

In 2016, the volume of refined products transported through the Gulf of Guinea averaged around 3 million barrels a day, equivalent to 3% of global maritime trade.

Kidnapping incidents surged 40% to 80 in the area from January to September this year, data from IMB piracy report revealed.

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“Pirates armed with guns and knives are abducting bigger groups of seafarers at further distances off the West African coast,” the document said.

In 2020, 132 raids have been reported, compared to 119 in the corresponding period of 2019.

“Masters and crews need to be extra vigilant and ensure all security measures are taken,” shipping industry association BIMCO said.

“As the dry season approaches and sea conditions abate, an increase in attacks has traditionally been seen, so maritime security risks to vessels operating in the Gulf of Guinea require renewed attention.”

The worrisome trend is happening at a time when West Africa is seeing an influx of cargoes, prompting a scramble for shipments down to the basin amid closed arbitrage opportunities for ship-owners in the western markets.

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