NNPC Condemns Pipeline Vandalism …Says Economy, Budget Under Threat

The Nigerian National
Petroleum Corporation (NNPC) said that the Nigeria’s economy and the 2016 budget are under threat from pipeline attacks and oil theft.
The Group Managing Director of NNPC, Dr. Maikanti Baru, stated this when he led a delegation of the corporation’s top management on courtesy call on the Chief of Defence staff, General  Gbariel Olonishakin at the Defence Headquarters in Abuja.
Baru appealed to the Nigeria Military to help secure critical  oil and gas infrastructure noting that the corporation had incurred  huge losses due to the nefarious activities of pipeline vandals and oil thieves.
According to him, about 1,447 cases of pipeline hacking were recorded during the period.
He said Nigeria lost N51.3 billion to pipeline  vandalism in 2015, hence the need  for military backup especially as the corporation prepares to re-enter Chad Basin and Benue Trough for oil exploration.
He said over 3000 vandalism  incidents were recorded yearly from 2010-2015 and that in  2015 alone, pipeline losses of PMS  volume of over 643 million litres, valued at over N51.28 billion was to incurred.
“The 2016 national budget plan was based on 2.2 million barrels per day of crude oil production. However, the budget plan is now  grossly impacted due to renewed militancy with about 700,000 barrels per day of oil production curtailed due to pipeline vandalism”, he said.
He stated further that the domestic natural gas supply to power is equally impacted with estimated drop of about 50 per cent from 1400 million standard cubic feet of gas per day resulting to significant power outage exposure of between 2500 mw and 300 mw as a result of direct and indirect impact.