The NNPCL has discovered 162 illicit pipeline connections in the Niger Delta region.

  • Post category:Business

The Nigerian National Petroleum Company Limited (NNPCL) recently found 162 illegal pipeline connections and illegal refineries in the Niger Delta, mainly in Bayelsa, during the past week. This information was shared through a documentary titled ‘War on Crude Oil Theft’ released on the company’s social media handle on Wednesday. The documentary revealed that they used a maritime intelligence system to uncover these illegal activities.

Between July 15 and 21, the company destroyed 93 illegal pipeline connections and 69 illegal refineries in the Aboa and Gbokoda regions. During that period, 27 pipelines were vandalized, and approximately 30 wooden boats, trucks, and individuals involved in the illegal activities were arrested. The vandalized pipelines are currently being repaired.

According to Orji Ogbonnaya, the executive secretary of the Nigerian Extractive Industries Transparency Initiative (NEITI), Nigeria lost 619.7 million barrels of crude oil, valued at N16.25 trillion ($46.16 billion), to crude oil theft from 2009 to 2020. The impact of oil theft on the oil and gas industry includes revenue loss and disinvestment.

Experts and industry operators emphasize that addressing theft and pipeline shutdown issues is crucial for Nigeria to increase its production capacity and benefit from high oil prices. Bala Wunti, NNPCL’s chief upstream investment officer, reported that the company loses $700 million monthly due to oil theft and pipeline vandalism, particularly around the Bonny oil export terminal.

With the NNPCL’s renewed commitment to tackling oil theft, economic experts anticipate a positive impact on the industry’s revenue and productivity. Mike Osatuyi, the national operations controller at the Independent Petroleum Marketers Association of Nigeria (IPMAN), believes that sustained efforts to curb oil theft will lead to increased production capacity and greater government revenue, ultimately benefiting the economy.

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