Host communities risk losing 3% PIA revenue over pipeline

By Adewale Sanyaolu

Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has warned host communities that any disruption to pipeline operations could be a major setback to the three per cent revenue share as contained in the Petroleum Industry Act (PIA).

He, therefore, urged host communities to remain vigilant and work with relevant security agencies to protect critical oil infrastructure.

Lokpobiri stated this during an inspection of the Tebedaba-Brass trunkline in Brass Local Government Area of Bayelsa State at the weekend following an attack by unidentified vandals.

The Tebedaba-Brass trunkline, formerly owned by Shell Petroleum Development Company (SPDC) and now operated by Oando, is a major crude oil supply route to the Brass terminal.

He emphasised that the operating company bears the brunt, and so does the host community.

According to him, any attack on oil facilities is utterly condemnable and must be met with decisive action.

“Our security agencies are fully mobilised and poised to track down and bring to justice all those behind these acts of sabotage.

While inspecting the 18-inch Tepidaba Brass-Oando pipeline at Brass Local Government Area of Bayelsa State, I stated that this sabotage goes beyond economic implications – it is an assault on the peace and stability we have collectively nurtured in the region.

This pipeline is a major trunk line, critical to our national oil supply. Anytime it remains shut, as it is now for maintenance, the country suffers immense revenue loss,” the Minister stated.

The minister emphasised that remaining vigilant and cooperating with security agencies is not merely a responsibility but a shared interest in safeguarding both the community’s welfare and its economic benefits.

Recall that the House of Representatives had last week resolved to investigate the current state of oil and gas pipelines across the country in a bid to avert economic losses to the nation.

The lawmakers said it would also probe the causes and impacts of frequent vandalism of pipelines in the country.

The resolution followed the adoption of a motion of urgent public importance sponsored by the member representing Fagge Federal Constituency, Kano State, Mr Muhammed Shehu, and 15 others on the “urgent need to rehabilitate the oil and gas pipeline networks to avert economic loss for Nigeria.”

While noting that Nigeria’s oil and gas sector remains the backbone of the national economy, contributing approximately 9 per cent to the Gross Domestic Product and generating over 90 per cent of export revenues, the Kano lawmaker lamented that between 2018 and 2023, “Nigeria recorded over 7,000 incidents of pipeline vandalism, resulting in the loss of $12.74m worth of crude oil.”

He said the House is aware that in October 2024, crude oil supply to Shell’s Forcados Terminal was reduced by 50 per cent due to sabotage, leading to loading delays and the risk of force majeure declarations.

“In January 2025, a major pipeline spill from a facility owned by Shell’s Nigerian subsidiary caused environmental devastation in the Niger Delta, worsening pollution and economic hardship for host communities.

“The House is concerned that in February 2025, Shell reported an oil spill near Port Harcourt caused by an overflow during pipeline flushing operations, highlighting ongoing risks in pipeline management,”.

Host communities risk losing 3% PIA revenue over pipeline sabotage, Minister warns

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Host communities risk losing 3% PIA revenue over pipeline sabotage, Minister warns

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