The Nigerian National Petroleum Company Limited (NNPCL) has allocated nearly N34.47 billion towards the repair and management of pipelines over a span of 18 months, as per the latest Oil and Gas Report from the Nigerian Extractive Industries Transparency Initiative. Of this, N22.05 billion was utilized for pipeline repairs and maintenance during 2021. Despite these efforts, pipeline vandalism remains a persistent challenge.
Key Points:
- In the first half of 2021, the NNPCL reported 350 instances of pipeline vandalism.
- NNPCL, in collaboration with local communities and stakeholders, has been working to combat pipeline vandalism.
- CEO Mele Kyari credited the success in monitoring product supply and distribution to initiatives like Operation White and the Automated Downstream Operations and Financial Monitoring Centre.
- The introduction of these initiatives has led to a reduction in illicit activities such as oil theft and cross-border smuggling of petroleum products.
- Between January and June 2022, NNPCL spent N12.42 billion on pipeline maintenance and security.
- Despite these investments, it was reported in September of the previous year that the NNPCL was losing 470,000 barrels per day of crude oil, amounting to $700 million monthly, due to oil theft.
Analysis: The substantial allocation towards pipeline repairs underscores the gravity of pipeline vandalism in Nigeria. While significant efforts have been made, the persisting challenge highlights the need for sustained strategies to safeguard critical energy infrastructure.
