Categories: Company News

NNPC Blames Fire at Buguma Wellhead on Crude Oil Thieves

The Nigerian National Petroleum Company Limited has attributed the recent fire at its Buguma Wellhead 008 in Rivers State to the activities of crude oil thieves.

In a statement issued by Mr. Olufemi Soneye, Chief Corporate Communications Officer of NNPC Ltd., the company alleged that the fire was caused by vandals attempting to tamper with the well’s Christmas tree to steal crude oil.

The incident also damaged the back pressure valve of the installation.

“The NNPC Ltd. remains committed to combating these fires and mitigating the financial losses associated with these criminal activities, which place a significant burden on the nation’s economy. The company is working closely with relevant security agencies to put an end to these acts of vandalism,” Soneye said.

Soneye noted that crude oil theft in the area has been an ongoing issue since March 2023 with criminals using increasingly extreme measures, including dynamite, to destroy installations and gain illegal access to hydrocarbons.

“This unfortunate act of sabotage reflects a disturbing pattern of repeated attacks on wellheads in the zone,” he said.

The NNPC stated that it is not only focused on mitigating the financial impact of these incidents but also on providing relief to communities affected by the destructive activities.

“NNPC Ltd. reaffirms its commitment to supporting communities affected by these destructive activities and will continue to provide necessary relief efforts to mitigate the impact on those affected,” Soneye added.

The company is collaborating with security agencies to address the recurring issue of oil theft and vandalism, which have continued to undermine Nigeria’s economy.

The Buguma Wellhead fire shows the ongoing challenge faced by NNPC and other stakeholders in securing oil and gas infrastructure against sabotage and theft, which remain a significant threat to the nation’s energy sector.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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