The Nigerian National Petroleum Company Limited has shut down approximately 6,465 unauthorized refineries to combat illegal crude oil theft in the country.
The NNPCL's Group Chief Executive Officer, Mele Kyari, revealed this at the company’s headquarters in Abuja while meeting with members of the House of Representatives Special Committee on Oil Theft during an oversight visit.
He mentioned, “Since 2022, we have put a stop to 6,465 illegal refineries. We have also dismantled 4,876 unauthorized pipeline connections out of the 5,570 that we have discovered.”
Kyari also pointed out that the NNPCL is uncertain about the exact number and emphasized that the company knows about many illegal connections that still need to be removed.
“The scale of violations we observe is unbelievable; we are unable to address all of them. After removing one connection, it gets replaced the next day in the same spot. It is evident that crude oil theft is a widespread issue in Nigeria and it is clear that everyone is involved.
“In most of these locations, they are less than a hundred meters from communities; some are even less than a hundred meters from local government headquarters,” he said.
The NNPCL boss stated that the attacks on pipelines make it hard to ensure the next day's production volume.
He remarked, “It is clear that despite the integrity issues with our pipelines and facilities, we have a capacity of over two million barrels per day without taking any action.
“But now, we are struggling to meet the targeted production of 1.6 million barrels per day. This is the main problem. No one will produce oil, knowing that they cannot sell it, and that's why no one is investing in it.
“In 2022, it became apparent that unless something drastic was done, we would face difficulties. On a specific date, our production dropped as low as 1.1 million barrels per day. And on a particular date, it fell below a million barrels.
The Chairman of the Special Committee, Alhassan Ado-Doguwa, mentioned that operating oil and gas pipelines in Nigeria is a major challenge.
He said, “There is hardly a week or even a few days without an infringement or damage to an oil and/or gas pipeline in the country,” and added that the violations also impact oil well heads, flow stations, loading, and export terminals, among other things.
He expressed concern about the lack of transparency in regulatory activities at the country’s crude oil export terminals, stating, “We are gathering the facts and figures. There are reports of instances where approvals are quickly granted to vessels involved in crude theft simply to conceal official involvement.
“Cases of undeclared liftings are noted, and all these and various other violations, especially in our offshore marine environment, contribute to the significant amount of crude oil theft being reported.”
