N53.36bn spent on pipeline repairs in 11 months – NNPC
A data from the Nigerian National Petroleum Corporation have shown that there is a reduction in the number of points on petroleum products pipelines vandalised in 2020 compared to 2019.
According to the data a total of 441 points on petroleum products were vandalised in 2020 while 2019 it was 1,484 points.
The data also revealed that the corporation spent N53.36bn on pipeline repairs and management cost from January to November.
“Products theft and vandalism have continued to destroy value and put NNPC at a disadvantaged competitive position,” the NNPC said in its latest monthly report.
The NNPC said in collaboration with the local communities and other stakeholders, it continuously strove to reduce and eventually eliminate this menace.
In December 2020, 43 pipeline points were vandalised representing about 18.60 per cent increase from the 35 points recorded in November 2020.
Giving a break down of the points according to the locations of the pipelines,the Corp said Mosimi Area accounted for 56 per cent of the vandalised points while Kaduna Area and Port Harcourt accounted for 33 per cent and 12 per cent respectively.
The number of pipeline points vandalised stood at 23 in October, 21 in September, 37 in August, 36 in July, and 33 in June.
The corporation recorded 37 vandalised points in May, 65 in April, 19 in March, 32 in February, and 60 in January.
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.
The corporation spent N1.80bn in July; N1.49bn in August; N4.41bn in October, and N3.68bn in November. No repairs and management cost was incurred in September, according to the data.
In January, the national oil company said 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, Mrs Ada Oyetunde, said the exercise was in conformity with the mandate of the Federal Government to prioritise the rehabilitation of critical downstream infrastructure across the country.
She listed the facilities that would be rehabilitated by successful bidders to include critical pipelines for crude oil supply to the refineries and evacuation of refined products, depots, and terminals.
According to her, 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.