• Corporation loses N57.71b to vandalism
• 2,832 vandalised points recorded in 13 months, 400
in 2016
• Ghana may dump Nigeria, looks elsewhere for gas
supply.
It may be virtually impossible for the Nigerian
National Petroleum Corporation (NNPC) to
operate its refineries, crude oil and products
pipelines nationwide profitably, unless
government takes drastic measures to eliminate
all acts of pipeline vandalism, according to an
investigation by The Guardian.
This is coming in the light of a report titled
“Report on Improving Local Refining Capacity
in Nigeria”, prepared by the Managing Director,
Matwims Consult Limited, Mark Tubotein,
which reveals that the repeated repairs by
Petroleum Pipelines and Marketing Company
(PPMC) after each act of vandalism for several
years calls to question the integrity of existing
pipelines that are over 35 years in operation
without adequate maintenance on them.
Before this report, there were revelations by
the NNPC that the huge spending by
government for the purpose of protecting
Nigeria’s vital petroleum products’ pipelines
seemed not to be having any positive effects on
the security of the country’s oil and gas
resources after all.
This is because despite spending N103.4 billion
for pipeline repairs and management between
January and December 2015, data from the
NNPC shows that the Federal Government
actually recorded crude oil and product losses
of N57.71 billion to pipeline vandalism.
According to Tubotein, the repeated repairs by
the Petroleum Pipelines and Marketing
Company (PPMC) after each act of vandalism
for several years call to question the integrity
of existing pipelines that are over 35 years of
operation without adequate maintenance on
them.
He noted that reports from the NNPC reveal
that as from January to August 2015 alone,
there have been over 1,824 cases of line breaks
on PPMC pipelines. “The corporation at least,
spends billions of naira each year to maintain
and secure pipelines with the assistance of
security personnel and community personnel in
the Niger Delta. With this level of financial
expenditure on dilapidated pipelines coupled
with low capacity utilisation of local refineries,
there is no way the corporation can remain
profitable.”
He said since the transportation of products
through pipelines cost less than the alternative
modes, viz, rail, road and sea, “ providing
marketing companies the access of pipelines for
a reasonable fee is essential to protect the
consumer interests. All product pipelines need
to be treated as utilities and ‘common carrier
principle’ made applicable to all of them. The
tariff for the usage of pipelines may be fixed by
the regulatory body such as Department of
Petroleum Resources (DPR).”
Due to the series of pipeline vandalism, Nigeria
has suffered setbacks in meeting its gas
obligation to Ghana and other West African
countries through the West Africa Gas Pipeline
Company. It was learnt that Ghana has already
started making alternative arrangements to get
gas in order to provide regular electricity,
which has been epileptic for several months
due to the deficit in Nigeria’s supply.
Specifically, NNPC disclosed that a total of
2,832 vandalised points were recorded between
February 2015 and January 2016. According to
data from the corporation, the Mosimi pipeline
recorded 103 breaks in February last year; 60
breaks in March; 101 breaks in April; 146
breaks in June; 78 in July; 79 in August; 44 in
September; 66 in October; 57 in November; 93
in December; and in January this year, it
recorded 59 breaks. In January alone, Kaduna
and Port Harcourt recorded 59 and 247 breaks
respectively, while Warri recorded 32
incidents.
The government initially hired community
members as guards, but then brought in the
security personnel when there was no
improvement with the local guards. Not even
the intervention of the security personnel could
stop the unrepentant vandals.
It was learnt that NNPC then adopted a new
strategy in 2011, reportedly signing pipeline
protection contracts worth at least $39.5
million a year. Government had touted the
deals as effective tools in the fight against oil
theft, yet NNPC’s own data show pipeline losses
actually went up after the new contracts
started.
In the last five years, things only appeared to
get worse. In the Niger Delta, as many as 5,280
oil wells are linked by 7,000 kilometres of
pipelines and are vulnerable to attacks by
organised gangs.
The NNPC said in its report that pipeline
vandalism, refinery capacity utilisation which
is below commercial threshold due to
prolonged Turn Around Maintenance (TAM)
issues, and products losses, had continued to
cost the corporation huge amounts of money.
Although the NNPC has not released the
January 2016 claimable Pipeline Repairs/
Management Cost and Crude and Product
Losses due to vandalised pipelines, The
Guardian learnt that the country has already
recorded over 400 breaches on pipelines
between January and March.
The corporation said that a comprehensive
reform of the pipeline security situation would
unlock several industry upsides which include
improved upstream oil production due to
reduced pipeline disruptions, improved refinery
utilisation due to increased crude oil feed from
restored pipelines, and reduction of crude oil
and product losses.
The Minister of State for Petroleum, Dr
Emmanuel Kachikwu, had expressed the
determination of the corporation to eradicate
oil theft and pipeline vandalism in the next
eight months.
“ I want to assure you that the new leadership
of NNPC, with the support and cooperation of
all stakeholders, is working very hard to
eradicate oil theft and pipeline vandalism in
the next eight months,” he said.
The NNPC boss said the measure was part of
efforts to enhance transparency and
accountability in the oil and gas industry, to
boost production capacity of the corporation.
According to him, oil theft and pipeline
vandalism have greatly affected the revenue
generation and image of Nigeria at the
international arena.
“Oil theft has reduced our revenue generation
and indeed affected the image of our country at
the international community,” he said. He
disclosed that as part of ways to find a lasting
solution to the lingering oil theft, NNPC would
establish a company that would be saddled
with the responsibility of securing pipelines in
the country.

source: http://m.guardian.ng/news/nnpc-spends-n103-4-billion-to-protect-oil-pipelines-in-one-year/[img]• Corporation loses N57.71b to vandalism
• 2,832 vandalised points recorded in 13 months, 400
in 2016
• Ghana may dump Nigeria, looks elsewhere for gas
supply.
It may be virtually impossible for the Nigerian
National Petroleum Corporation (NNPC) to
operate its refineries, crude oil and products
pipelines nationwide profitably, unless
government takes drastic measures to eliminate
all acts of pipeline vandalism, according to an
investigation by The Guardian.
This is coming in the light of a report titled
“Report on Improving Local Refining Capacity
in Nigeria”, prepared by the Managing Director,
Matwims Consult Limited, Mark Tubotein,
which reveals that the repeated repairs by
Petroleum Pipelines and Marketing Company
(PPMC) after each act of vandalism for several
years calls to question the integrity of existing
pipelines that are over 35 years in operation
without adequate maintenance on them.
Before this report, there were revelations by
the NNPC that the huge spending by
government for the purpose of protecting
Nigeria’s vital petroleum products’ pipelines
seemed not to be having any positive effects on
the security of the country’s oil and gas
resources after all.
This is because despite spending N103.4 billion
for pipeline repairs and management between
January and December 2015, data from the
NNPC shows that the Federal Government
actually recorded crude oil and product losses
of N57.71 billion to pipeline vandalism.
According to Tubotein, the repeated repairs by
the Petroleum Pipelines and Marketing
Company (PPMC) after each act of vandalism
for several years call to question the integrity
of existing pipelines that are over 35 years of
operation without adequate maintenance on
them.
He noted that reports from the NNPC reveal
that as from January to August 2015 alone,
there have been over 1,824 cases of line breaks
on PPMC pipelines. “The corporation at least,
spends billions of naira each year to maintain
and secure pipelines with the assistance of
security personnel and community personnel in
the Niger Delta. With this level of financial
expenditure on dilapidated pipelines coupled
with low capacity utilisation of local refineries,
there is no way the corporation can remain
profitable.”
He said since the transportation of products
through pipelines cost less than the alternative
modes, viz, rail, road and sea, “ providing
marketing companies the access of pipelines for
a reasonable fee is essential to protect the
consumer interests. All product pipelines need
to be treated as utilities and ‘common carrier
principle’ made applicable to all of them. The
tariff for the usage of pipelines may be fixed by
the regulatory body such as Department of
Petroleum Resources (DPR).”
Due to the series of pipeline vandalism, Nigeria
has suffered setbacks in meeting its gas
obligation to Ghana and other West African
countries through the West Africa Gas Pipeline
Company. It was learnt that Ghana has already
started making alternative arrangements to get
gas in order to provide regular electricity,
which has been epileptic for several months
due to the deficit in Nigeria’s supply.
Specifically, NNPC disclosed that a total of
2,832 vandalised points were recorded between
February 2015 and January 2016. According to
data from the corporation, the Mosimi pipeline
recorded 103 breaks in February last year; 60
breaks in March; 101 breaks in April; 146
breaks in June; 78 in July; 79 in August; 44 in
September; 66 in October; 57 in November; 93
in December; and in January this year, it
recorded 59 breaks. In January alone, Kaduna
and Port Harcourt recorded 59 and 247 breaks
respectively, while Warri recorded 32
incidents.
The government initially hired community
members as guards, but then brought in the
security personnel when there was no
improvement with the local guards. Not even
the intervention of the security personnel could
stop the unrepentant vandals.
It was learnt that NNPC then adopted a new
strategy in 2011, reportedly signing pipeline
protection contracts worth at least $39.5
million a year. Government had touted the
deals as effective tools in the fight against oil
theft, yet NNPC’s own data show pipeline losses
actually went up after the new contracts
started.
In the last five years, things only appeared to
get worse. In the Niger Delta, as many as 5,280
oil wells are linked by 7,000 kilometres of
pipelines and are vulnerable to attacks by
organised gangs.
The NNPC said in its report that pipeline
vandalism, refinery capacity utilisation which
is below commercial threshold due to
prolonged Turn Around Maintenance (TAM)
issues, and products losses, had continued to
cost the corporation huge amounts of money.
Although the NNPC has not released the
January 2016 claimable Pipeline Repairs/
Management Cost and Crude and Product
Losses due to vandalised pipelines, The
Guardian learnt that the country has already
recorded over 400 breaches on pipelines
between January and March.
The corporation said that a comprehensive
reform of the pipeline security situation would
unlock several industry upsides which include
improved upstream oil production due to
reduced pipeline disruptions, improved refinery
utilisation due to increased crude oil feed from
restored pipelines, and reduction of crude oil
and product losses.
The Minister of State for Petroleum, Dr
Emmanuel Kachikwu, had expressed the
determination of the corporation to eradicate
oil theft and pipeline vandalism in the next
eight months.
“ I want to assure you that the new leadership
of NNPC, with the support and cooperation of
all stakeholders, is working very hard to
eradicate oil theft and pipeline vandalism in
the next eight months,” he said.
The NNPC boss said the measure was part of
efforts to enhance transparency and
accountability in the oil and gas industry, to
boost production capacity of the corporation.
According to him, oil theft and pipeline
vandalism have greatly affected the revenue
generation and image of Nigeria at the
international arena.
“Oil theft has reduced our revenue generation
and indeed affected the image of our country at
the international community,” he said. He
disclosed that as part of ways to find a lasting
solution to the lingering oil theft, NNPC would
establish a company that would be saddled
with the responsibility of securing pipelines in
the country.

source: http://m.guardian.ng/news/nnpc-spends-n103-4-billion-to-protect-oil-pipelines-in-one-year/[

Hmm.. And Nigerias will be like we want to grow while we are the demon that is pulling Nigeria Back.infact if they can start shot at site anyone caught they will be forced to stop we only fear strict rule

We no dey argue with them.

See money,if only FG culd go local,why spend such a great amount wen you can use or apply "makan",NNPC should use made in Nigeria charm to protect it.

APC n Buhari thought governance is like bread n butter, and stealing alone.
Like d popular saying,they only wanted GEJ out but we're never prepared to govern wen they actually win.

Buhari will be stoned out by 2019.

I Laff in Swahili.

989900:
Pipeline vandalism should attract shooting on sight!

The problem is that these pipelines pass through seemingly inaccessible areas...