The Nigerian National Petroleum Corporation says it is taking measures to address the menace of pipeline vandalism and crude oil theft in the nation’s Oil and Gas industry.
The Group Managing Director, Malam Mele Kyari, disclosed this at the inaugural Nigeria Extractive Industries Transparency Initiative Policy Dialogue in Abuja on Tuesday.
He said that oil theft had remained a challenge in the industry in spite of some strong interventions in the past.
The NNPC boss noted that the gradual reduction in pipelines vandalism would be sustained through improved collaboration, implementation of Global Memoranda of Understanding and deployment of appropriate technologies.
Kyari, represented by the NNPC Chief Operating Officer, Upstream, Roland Ewubare, listed other measures to curb the menace to include a security architecture with single accountability for national critical infrastructure.
He listed others as industry and regulatory commitment to transparent crude oil and products accounting, realistic expectation by host communities, and emplacement of sustainable social investment mechanism.
Kyari emphasised the need to inculcate shared values of integrity and transparency across every level of the governance structure for pipeline security, policy refill and enforcement of legal actions on economic saboteurs.
He harped on the need to prioritise and instil in the nation’s teeming youth a sense of patriotism and national orientation.
On the immediate and remote causes of oil theft and pipeline vandalism, the GMD said that most stakeholders were of the view that oil theft was majorly a social problem.
Kyari noted that underlying causes of crude oil theft include poverty in the communities, community-Industry expectation mismatch and corruption.
Others, he noted include ineffective law enforcement, poor governance, poor prosecution of offenders, high unemployment in the communities, thriving illegal oil market involving both Nigerians and foreigners, and inadequate funding of resources to combat oil theft.
He expressed concern that NNPC as an operator had suffered severe attacks on its facilities.
According to him, between 2001 to mid 2019, NNPC had recorded a total of 45,347 pipeline breaks on its Downstream pipeline network across the country.
Kyari said for the nation’s economy to prosper, NNPC and other oil companies must be able to operate efficiently and profitably.
“Unfortunately, the combination of crude oil theft, illegal refining and pipeline vandalism has become a major threat to Nigeria in meeting its revenue projections in recent time,” he said.
Also in his presentation, the Edo State Governor and Chairman of the National Economic Council Ad Hoc Committee on Crude Oil Theft, Prevention and Control, Godwin Obaseki, stressed the need to institute a proper governance structure for pipeline security in the Industry.
Obaseki called on the Nigeria Intelligence Agency to work with the NNPC in identifying possible international markets and destinations of stolen Nigerian crude oil.
He said the industry must end the prevailing incentives that make it possible for crude oil theft and pipeline vandalism to flourish.
The governor disclosed that NEC had upgraded the Ad Hoc Committee on Crude Theft to a standing committee with a mandate to provide regular updates to NEC as may be required.
Speaking earlier, the Executive Secretary of NEITI, Waziri Adio, gave gory statistics on the situation, challenging participants at the policy dialogue to come up with practical solutions.
The theme of this year’s dialogue was: “Stemming the Increasing Cost of Oil Theft to Nigeria.”
Trending
- Jonathan backs state police, says commercial kidnapping’ started in 2006 in Niger Delta
- Babcock University provides details on Law Professor shot dead at relaxation centre
- Chamber speaks on report Nigerians denied access to Chinese supermarket
- NERC transfers regulatory oversight of Enugu electricity market to state
- Onakoya: Playing chess from the slum to World Record, by Reuben Abati
- Yahaya Bello: EFCC denies disobeying court order
- ALGON BoT appeals judgment on Alabi’s leadership
- Naira loses 6% against dollar at official market