The Nigerian National Petroleum Corporation (NNPC) is making moves to curb the menace of pipeline vandalism and crude oil theft in the nation’s Oil and Gas Industry.
NNPC Group Managing Director, Mele Kyari disclosed this at the inaugural Nigeria Extractive Industries Transparency Initiative (NEITI) Policy Dialogue in Abuja.
The theme of this year’s dialogue is: “Stemming the Increasing Cost of Oil Theft to Nigeria.”
The NNPC boss who noted that oil theft had remained a challenge in the industry in spite of some strong interventions in the past, said its gradual reduction would be sustained through improved collaboration, implementation of Global Memoranda of Understanding (GMoUs), 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 priortise and instill 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.
He 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 has recorded a total of 45,347 pipeline breaks on its Downstream pipeline network across the country.
Kyari said that 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.