Oil & Energy
137 Pipelines Points Vandalised In February – NNPC
No fewer than 137 pipelines points were vandalised in February which represents a 40 per cent drop when compared to the reported incident in January, according to Nigerian National Petroleum Corporation (NNPC).
The corporation made the fact known in its Monthly Financial and Operation report released in Abuja, on Sunday.
It said: “A breakdown of the report indicated that in February 2019, a total of 137 pipeline points were vandalised which translated to 40 per cent drop from the 230 points vandalised in January 2019.”
It noted that Mosimi-Ibadan petroleum products pipeline accounted for 72 per cent of the breaks while Kaduna, Port-Harcourt, Warri and Gombe lines made up the remaining 28 per cent.
The report attributed the drop in the line break to efforts by NNPC, the local communities and other stakeholders to reduce and eventually eliminate pipeline vandalism.
On crude oil export sales, it said that the NNPC posted a total export sale of crude oil and gas of 490.03 million dollars in February which was 32.45 per cent higher than the previous month’s sale.
It added that crude oil export sales contributed 350.29 million dollars (71.48 per cent) of the dollar transactions compared with 240.23 million dollars contribution in the previous month.
The report, which is the 43rd edition, explained that gas export sales amounted to 139.74 million dollars in the month under review.
It added that the February 2018 to February 2019 crude oil and gas transactions indicated that crude oil and gas worth of 5.94 billion dollars was exported.
On petrol supply and distribution, it said 1.27 billion litres of product translating to 45.53 million litres/day was supplied for the month under review.
“On the Downstream Sector, the corporation has continued to diligently monitor the daily stock of Premium Motor Spirit (PMS), otherwise called petrol, to achieve smooth distribution of petroleum products and zero fuel queue across the nation,” it said .
In terms of natural gas off-take, commercialisation and utilisation, the report indicated that within the period, daily average natural gas supply to gas power plants increased by 8.23 per cent to 819.85 million standard cubic feet (mmscf).
This, it said was equivalent to power generation of 3,336 MW.
“The figure is an improvement from the January 2019 record where an average of 757 mmscfd was supplied to generate 3,124 MW.
“Also, out of the 223.23 billion cubic feet (bcf) of gas supplied in February 2019, a total of 127.62bcf of gas was commercialised consisting of 37.77 bcf and 89.85 bcf for the domestic and export market respectively.
” This translates to a total supply of 1,349.03 mmscfd of gas to the domestic market and 3,780.24 mmscfd of gas supplied to the export market for the month,” It said.
This it noted implied that 57.17 per cent of the average daily gas produced was commercialised while the balance of 42.83 per cent was re-injected, used as upstream fuel gas or flared.
“Gas flare rate was 9.51 per cent for the month under review which is 757.94 mmscfd, compared with average gas flare rate of 9.52 per cent that is 750.01 mmscfd for the period February 2018 to February 2019,” It said.
Nigeria’s losses due to crude oil theft has been said to be more significant than those of some other members of the Organisation of Petroleum Exporting Countries(OPEC).
The Chairman, Senate Ad- hoc Committee on Crude Oil Theft, Senator Ned Nwoko, made this known in an interview with newsmen in Abuja.
Nwoko noted with dismay the detrimental impact of the issue, which, he said include economic damage, environmental destruction, and its impact on host communities.
According to him, the theft was not only weakening the Naira, but also depriving the nation of vital revenue needed for infrastructure, healthcare, education and social development.
The Senator representing Delta North Senatorial District described the scale of the theft as staggering, with reports indicating losses of over 200,000 barrels per day.
Nwoko disclosed that the ad hoc committee on Crude Oil Theft, which he chairs, recently had a two-day public hearing on the rampant theft of crude oil through illegal bunkering, pipeline vandalism, and the systemic gaps in the regulation and surveillance of the nation’s petroleum resources.
According to him, the public hearing was a pivotal step in addressing one of the most pressing challenges facing the nation.
‘’Nigeria loses billions of dollars annually to crude oil theft. This is severely undermining our economy, weakening the Naira and depriving the nation of vital revenue needed for infrastructure, healthcare, education, and social development.
‘’The scale of this theft is staggering, with reports indicating losses of over 200,000 barrels per day more than some OPEC member nations produce.
‘’This criminal enterprise fuels corruption, funds illegal activities and devastates our environment through spills and pollution.
‘’The public hearing was not just another talk shop; it was a decisive platform to uncover the root causes of crude oil theft, bunkering and pipeline vandalism.
‘’It was a platform to evaluate the effectiveness of existing surveillance, monitoring, and enforcement mechanisms; Identify regulatory and legislative gaps that enable these crimes to thrive.
‘’It was also to engage stakeholders, security agencies, host communities, oil companies, regulators, and experts to proffer actionable solutions; and strengthen legal frameworks to ensure stricter penalties and more efficient prosecution of offenders”, he said.
Nwoko noted that Nigeria’s survival depended
Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) has called on Nigerian companies to position themselves strategically to take full advantage of the growing opportunities in upcoming offshore and shallow water oil and gas projects.
The Managing Director, SNEPCO, Ronald Adams, made the call at the 5th Nigerian Oil and Gas Opportunity Fair (NOGOF) Conference, held in Yenagoa, Bayelsa State, last Thursday.
Adams highlighted the major projects, including Bonga Southwest Aparo, Bonga North, and the Bonga Main Life Extension, as key areas where Nigerian businesses can grow their capacity and increase their involvement.
“Shell Nigeria Exploration and Production Company Ltd. (SNEPCo) says Nigerian companies have a lot to benefit if they are prepared to take advantage of more opportunities in its offshore and shallow water oil and gas projects.
“Projects such as Bonga Southwest Aparo, Bonga North and Bonga Main Life Extension could grow Nigerian businesses and improve their expertise if they applied themselves seriously to executing higher value contracts”, Adams stated.
Adams noted that SNEPCo pioneered Nigeria’s deepwater oil exploration with the Bonga development and has since played a key role in growing local industry capacity.
He emphasized that Nigerian businesses could expand in key areas like logistics, drilling, and the construction of vital equipment such as subsea systems, mooring units, and gas processing facilities.
The SNEPCO boss explained that since production began at the Bonga field in 2005, SNEPCo has worked closely with Nigerian contractors to build systems and develop a skilled workforce capable of delivering projects safely, on time, and within budget both in Nigeria and across West Africa.
According to him, this long-term support has enabled local firms to take on key roles in managing the Bonga Floating, Production, Storage and Offloading (FPSO) vessel, which reached a major milestone by producing its one-billion barrel of oil on February 3, 2023.
The Emohua Local Government Area Administrator, Franklin Ajinwo, has pledged to improve electricity distribution in Oduoha Ogbakiri and its environs.
Ajinwo made the pledge recently while playing host in a courtesy visit to the Oduoha Ogbakiri Wezina Council of Chiefs, in his office in Rumuakunde.
He stated that arrangements are underway to enhance available power, reduce frequent outages, and promote steady electricity supply.
The move, he said, was aimed at boosting small and medium-scale businesses in the area.
“The essence of power is not just to have light at night. It’s for those who can use it to enhance their businesses”, he said.
The Administrator, who commended the peaceful nature of Ogbakiri people, urged the Chiefs to continue in promoting peace and stability, saying “meaningful development can only thrive in a peaceful environment”.
He also charged the Chiefs to protect existing infrastructure while promising to address the challenges faced by the community.
Earlier, the Oduoha Ogbakiri Wezina Council of Chiefs, led by HRH Eze Goodluck Mekwa Eleni Ekenta XV, expressed gratitude to the Administrator over his appointment and pledged their support to his administration.
The chiefs highlighted challenges facing the community to include incessant power outage, need for new transformers, and the completion of Community Secondary School, Oduoha.
The visit underscored the community’s expectations from the LGA administration.
With Ajinwo’s assurance of enhancing electricity distribution and promoting development, the people of Oduoha Ogbakiri said they look forward to a brighter future.
By: King Onunwor