Nigeria lost over N62.58billion to oil thieves in 16 months, according to the Group Managing Director (GMD) of NNPC, Mallam Mele Kyari.
Speaking during an interactive session with Guild of Editors, Kyari stated that NNPC lost about 2.9million barrels of crude oil worth $48.42million (N17,431,200,000 at N360/$) in two months.
According to him, “Based on reconciled industry figures, about 2.9million liters worth $48.42million of crude oil was lost to illegal activities of pipeline vandals and oil thieves. 74 crude oil pipelines breach was recorded between January and February 2020.
“Between January to April 2020, 56.8million liters of premium motor spirit (PMS), otherwise called petrol worth N7billion was also lost to product theft and pipeline vandalism. The product was stolen on System 2B pipeline network alone.”
From January to December 2019, he said pipeline vandals and criminal gangs operating along system 2B axis have stolen about 291.2million liters of PMS valued at N38.18billion in addition to economic scale damage to pipeline infrastructure and the environment.
When added together, over N62,580,000,000.00 is lost to oil theft and vandalism in 16 months (from January 2019 to April 2020).
While stressing the importance of Systems 2B & 2E Pipeline networks to effective Petroleum products distribution to the Southwest, Southeast and other parts of the country, he said NNPC has scaled up efforts to secure pipeline network against vandalism and theft.
“System 2B and the distribution depots along the Southwest distribution corridors are active. Persistent vandalism and product theft has forced the shutdown of Aba-Enugu segment of System 2E,” he said.
He posited further that with the support of the Nigerian Navy, NNPC undertook clearance of shanties and illegal structures and “203 structures were demolished along the System 2B.”
As global pandemic the world, he said NNPC has sustained operations despite disruptions and slowed down economic activities.
He said NNPC activated Business Continuity Protocol and connect with NNPC and partners locations to ensure operations are sustained across the business value chain.
“Employees are working remotely, supporting the delivery of the Corporations business objectives and ensuring revenue flow to the Federation and sustaining National energy security,” he said.
He said NNPC has however maintained steady production in order not to lose market share in the event of crude oil price recovery, “Instead, NNPC has taken aggressive Capital Allocation to prioritise low-cost oil production and additional measures to ensure cost discipline across including renegotiation down of contracts and other business obligations, thus saving 40% of proposed budget and cost.”
