Pipeline Vandalism Costs NNPC N34.47 Billion in 18 Months

The Nigerian National Petroleum Company Limited (NNPCL) has revealed that it spent nearly N34.47 billion in the past 18 months to combat the persistent issue of pipeline vandalism in the country.

The latest Oil and Gas Report from the Nigerian Extractive Industries Transparency Initiative covering 2021 disclosed that N22.05 billion was allocated to pipeline repairs and maintenance alone.

During the first half of 2021, NNPCL reported a distressing 350 pipeline points vandalized, highlighting the urgent need for countermeasures. In response, NNPCL has been actively collaborating with local communities and stakeholders to mitigate pipeline vandalism.

NNPCL’s CEO, Mele Kyari, attributed recent improvements to the introduction of Operation White and the Automated Downstream Operations and Financial Monitoring Centre.

These innovations have enabled NNPCL to enhance its monitoring capabilities and reduce illicit activities such as oil theft and cross-border smuggling of petroleum products, which previously led to supply disruptions and significant revenue losses.

Also, in January 2021, NNPCL received interest from 96 companies to participate in the rehabilitation of downstream facilities via the Build, Operate, and Transfer financing model.

However, despite the substantial investments, NNPCL continues to grapple with significant losses. The company disclosed that it loses 470,000 barrels per day of crude oil, amounting to $700 million monthly, due to oil theft.

In a related development, 10 individuals accused of vandalizing NNPCL’s pipeline on the high seas faced charges of conspiracy and willful tampering. They were ordered to be remanded in the Nigerian Correctional Service by Justice Akintoye Aluko of the Federal High Court in Lagos.

As pipeline vandalism remains a significant challenge, the Nigerian government and NNPC are determined to safeguard their critical infrastructure while exploring new ways to combat this menace.