Growing crude heists persist as NNPC spends N147bn on pipeline security, repairs

As Nigeria’s oil sector bleeds money on account of the activities of oil thieves, Nigerian National Petroleum Company (NNPC) Ltd has revealed it spent N147 billion on repairs and maintenance of leaking pipelines carrying crude oil from wells to flow stations in the Niger Delta, where more than 90 percent of the country’s crude is produced.

In Nigeria, petroleum and associated products are transported through an extensive network of pipelines that run across different locations throughout the country from remote to populated areas.

A Dataphyte report had earlier noted that Nigeria lost 272 million barrels of  Crude Oil to theft, Sabotage in five years, between 2016 and 2020.

These developments are despite Nigeria’s investment in securing its Crude Oil infrastructure and in putting its facilities in good shape. 

Between 2019 and 2021, Nigeria’s Oil company, the NNPC Ltd spent N135.518 billion on Security, Repairs and Maintenance. 

While Repairs and Maintenance gulped N103.017 billion, Security took N32.501 billion within these three years.

It would mean that everyday in these three years, the NNPC Ltd spent N123 million on security, repairs and maintenance. It would also mean that the Oil company spent N3.7 billion monthly on Security, Repairs and Maintenance between 2019 and 2021.

Between January and June in 2022 , the NNPC Ltd spent N12.424 billion on Pipeline Maintenance and Security. Meaning that everyday in the first six months of 2022, NNPC Ltd spent N66.79 million on Pipeline security and maintenance.

It would also mean that between 2019 and the first six months of 2022, NNPC Ltd spent the sum of N147 billion on security, maintenance and repairs.

Despite billion naira expenses on pipeline repairs, the NNPC Ltd’s officials was quoted in September 2022 as stating that Nigeria loses $700 million monthly due to Oil theft.

The official stated that some pipelines could not function due to the activities of criminals. It was further explained that the activities of Pipeline Vandals and organised crooks have been affecting the ability of the country to produce crude Oil maximally.

In March this year, it was reported that only 5 percent of Crude Oil pumped through the Trans Niger Pipeline were received by producers between October 2021 and February 2022 as criminals sabotaged massive production.

For instance, Bonny Terminal was reported as receiving less than 3000 barrels of Crude Oil a day, despite its ability to receive over 200,000 barrels daily.

In 1975, Nigeria enacted the Petroleum production and Distribution Act which is also known as the Anti-Sabotage Act stated that anyone who commits Sabotage shall be liable to 21 years imprisonment or death.

Nigeria has also awarded contracts to militants for securing its pipelines from theft, the most recent is the well publicised contract awarded to Tompolo, a Militant leader,  said to be worth N48 billion in a year.

Security agencies such as the Navy and Army have also partnered to stem the tide of Oil theft in the country.

The NNPC Ltd has also launched an application dedicated to tracking crude Oil theft in the country, the application is called “Crude Theft Monitoring Application”.

Although this has not led to an end of the theft of crude Oil in Nigeria, with losses recorded from time to time in the country.

Oil workers in the country have also been reported to have threatened to go on strike, if the continued Oil theft is not stopped in the country, noting that their lives are at risk.

The Nigeria Security and Civil Defence Corps have however asked that the country deploy technology in the bid to fight Crude Oil theft.

The NNPC Ltd has also noted that it is adopting the Saudi Arabia’s state-owned Oil-company, Aramco, model of video surveillance of monitoring Pipeline activities.

Already, it has been reported that Shell Oil company intends to monitor Pipelines through drones in the Niger Delta.