In a bid to fight the lingering pipeline vandalism, the Nigerian National Petroleum Corporation has announced in its latest monthly report an expenditure of almost N50bn to repair and manage pipelines in 10 months.
The monthly report also showed that a total of 363 vandalised points were recorded from January to October 2020.
In the report, NNPC said it spent N5.48bn on pipeline repairs and management cost in January; N6.74bn in February; N7.69bn in March; N7.84bn in April; N7.99bn in May and N6.24bn in June.
It spent N1.80bn in July; N1.49bn in August; and N4.41bn in October. No repairs and management cost were incurred in September.
However, NNPC said “products theft and vandalism have continued to destroy value and put NNPC at disadvantaged competitive position.”
It also disclosed that 23 pipeline points were vandalised in October, representing about 10 per cent increase from the 21 points recorded in September.
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The corporation said, “Of this figure, Mosimi Area in Ogun State, South-western Nigeria accounted for 83 per cent of the vandalised points while Port Harcourt Area in the Niger Delta region accounted for the remaining 17 per cent.
“NNPC, in a joint effort with the local communities and other stakeholders, have continuously strive to reduce and eventually eliminate this menace.”
Earlier this month, the national oil company announced that a total of 96 companies from various jurisdictions had indicated an interest in undertaking the rehabilitation of its downstream facilities, ranging from critical pipelines to depots and terminals, through the Build, Operate and Transfer financing model.
The Managing Director of the Nigerian Pipelines and Storage Company, Ada Oyetunde, said the exercise was in accordance with the mandate of the Federal Government to prioritize the rehabilitation of critical downstream infrastructure across the country.
She listed the facilities that will be rehabilitated by successful bidders to include critical pipelines for crude oil supply to the refineries and evacuation of refined products, depots, and terminals.
She said the objective is to get them ready to support the refineries when they become operational after their rehabilitation.
Poor maintenance and vandalism have left many of the depots and pipelines idle for years, with the number of fuel tankers on the roads increasing and wreaking havoc.