NNPC Spends N41.98 Billion on Pipeline Repairs
The Nigerian National Petroleum Corporation (NNPC) has said it spent a total sum of N41.98 billion on pipeline repairs and management in the first six months of the year.
The corporation stated in its latest monthly oil report, saying “Products theft and vandalism have continued to destroy value and put NNPC at disadvantaged competitive position.”
It explained that a total of 1,067 pipeline points were vandalised between June 2019 and June 2020 with 33 of those vandalised in June 2020. That was 11 percent lower than the 37 points vandalised in the month of May.
The NNPC said, “Mosimi-Ibadan accounted for 33 per cent while ATC-Mosimi and Warri-River Niger recorded 27 per cent of the breaks each; other locations make up for the remaining 13 per cent.
“NNPC in collaboration with the local communities and other stakeholders continuously strive to reduce and eventually eliminate this menace.”
Further break down showed the NNPC spent N5.48 billion on pipeline repairs and management costs in the month of January 2020. In February, March, April, May and June of the same year, the corporation spent N6.74 billion; N7.69 billion; N7.84 billion; N7.99 billion and N6.24 billion, respectively.
The corporation also said the pipelines have aged over the years, therefore, giving rise to frequent failures and consequent operational downtimes.
“In addition, these facilities have aged over the years giving rise to frequent failures and consequent operational downtimes, high maintenance cost and revenue losses,” the NNPC added.
