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From Juliana Taiwo-Obalonye, Abuja
Chief Executive Officer of Nigerian National Petroleum Corporation Limited (NNPCL), Mele Kyari has disclosed churches, mosques, security agencies as well as communities where pipelines pass through are involved in pipeline vandalism and theft of petroleum products.
This is even as he has declared that the decision to hire private contractors including that of Nigerian militant commander of the Movement for the Emancipation of the Niger Delta, Government Ekpemupolo, otherwise known as Tompolo. to man its oil pipeline network nationwide, is the right one.
He made the disclosure Tuesday at the 49th Session of State House Briefing organised by the Presidential Communication Team, adding that that the shutting down of pipelines in the country was deliberate, owing to the challenge of not operating as a business thereby making them to incur loses.
He said: “As you may also be aware because of the very unfortunate acts of vandals along our major pipelines from Atlas Cove all the to Ibadan, and all others connecting all the 37 depots that we have across the country. You know, none of them can take delivery of products today.
“And the reason is very simple. For some of the lines, for instance, from Warri to Benin, we haven’t operated that line for 15 years. Every molecule of product that we put get lost. And of course you remember the sad incident of the fire incident very close to Warri, close to Sapele that killed so many people.
“So, we had to shut it down and as we speak, ladies and gentlemen, the level of losses that we have on our product pipeline, and I’m sure you may have seen it and I’ll invite you at the right time so we can take a look at it jointly.
“You remember that Lagos area. When a fire outbreak happened in one of our pipelines, we discovered that some of the pipelines were actually connected to individuals homes. And not only that, and with all sensitivity to our religious believes, you know, some of the pipelines and some of the products that we found, are actually in churches and in mosques.
“That means that everybody is involved. There is no way you will take products, bring in trucks in populated neighborhoods, load it and leave without everybody else knowing about it. That everybody includes members of the community, members of the religious leadership and also and most likely government officials of all natures, including security agencies personnel. They are everywhere. And I’ve seen this even in the Niger Delta. There’s no way you would deliver a volume and lose upto 30 percent and you will continue to put that products in this line.”
The CEO said that the NNPCL management is building National Reserve Company, adding that 295 illegal connections were discovered in one line in less than 200 meters, and that the company with the help of the security agencies and the directive of the Chief of Defense Staff, they were able to intervene.
Kyari said so far, 30 Speed Boats, 179 Wooden Boats, 37 trucks have been arrested, adding that a decision have been taken not to arrest any longer but to burn such confiscated producrs.
The NNPCL boss, added that 122 persons comprising highly placed individuals have been arrested between April and August and that some of them have been handed over to the Econonic and Financial Crimes Commission, EFCC.
He said 739 Ovens for the illegal crude oil theft have been discovered and some destroyed, stating that also discovered were 344 reservoir created and 355 Cooking Pots, stressing that the level of the illegal business was enormous.
“It simply means destruction of environment. We have lost revenue,” he declared.
On decision to hire private contractors to man its oil pipeline network nationwide, Kyari, argued that although the security agencies are doing their part, end-to-end pipeline surveillance would require the involvement of private entities and community stakeholders.
He said “We need private contractors to man the right of way to these pipelines. So we put up a framework for contractors to come and bid and they were selected through a tender process. And we believe we made the right decision.”
Fielding further questions on the contract, Kyari explained that although the FG is not dealing directly with the former Warlord, it has signed a contract with a company in which Tompolo has interests.
Kyari also disclosed that
the leadership of the NNPC have also borrowed $1 billion from the AFREXIM Bank to put fix the country’s refineries, which will result in 90 percent efficiency.
According to him, the lenders conditions for giving out the loan is tied to the productivity of the refineries for them to recoup their money, boasting that NNPC would deliver on the rehabilitation exercise.
According to the CEO of NNPCL, there would not be any importation of petroleum products by the middle of next year.
Speaking on achieving an end to petroleum products’ importation by middle of 2023, the oil chief revealed that a combination of production from the national refineries, which are currently being refurbished and will be ready next year, and the products from the Dangote Refinery, in which Nigeria has a 20% stake, Nigeria should meet domestic needs, without any need for importation from mid-2023.
“NNPC owns 20% equity in the Dangote refinery and not only that, and we’re very proud of this. We’re not only owning 20% equity, we have the first right of refusal to supply crude oil to that plant. But we saw this energy transition challenge coming we knew at that time will come when you will look for people who will buy your crude oil you will not find and that means that we have locked down ability to sell crude oil for 330,000 barrels minimum by right for the next 20 years.
“Also, by right also we have access to 20% of the production from that plant. That means that whatever it does, you know we have a right to take 20% of that production as part of our equity and this refinery will come on stream by latest by the mid of next year.
“Projection is first quarter, but we think that it can come up latest by the middle of next year. If it does, this refinery alone, because it has a 650,000 per barrel capacity and a different technology, which means that it can crack the crude in a manner that you can have more gasoline than a typical refinery.
“That means that the refinery has ability to produce up to 50 million litres of PMS. So, the combination of that and our own ability to bring back our refinery will completely eliminate any potential petroleum product into this country next year. You will not see any importation to into this country next year. This is very practical. This is possible.
“As a matter of fact, when we’re done with our refineries and the Dangote Refinery, very many small initiatives that we are doing; small, modular, condenser refineries that we’re building, if that happens, and we are very optimistic it will happen.
“You will see that this country will now be a net exporter, we hope of export of petroleum products, not just to the west African sub region, but to the rest of the world. This will happen, the flow of supply will change – by middle of next it will change. So, you will have no need for importation of petroleum products into this country by middle of next year”, Kyari said.
