Oil & Energy

Theft: Nigeria’s 180,000b/d TNP Pipeline Runs Dry

Published

1 year ago

August 1, 2022

An oil pipeline capable of hauling 180,000 barrels a day across Nigeria has ceased transporting crude since mid-June due to theft, according to a source.
The Trans-Niger Pipeline, TNP, has yet to be formally shut, said the source, who prefers being anonymous because the information has not been made public.
The link’s capacity is about 15% of Nigeria’s most recent average daily output, according to Bloomberg calculations.
Nigeria, Africa’s largest oil producer and a member of the Organization of Petroleum Exporting Countries, has tried to stamp out sabotage on its pipeline network in recent years. Oil theft remains a chronic problem for the midstream system known as the TNP.
Producers received as little as 5% of crude volumes pumped through the pipeline between October 2021 and February, an industry union reported earlier this year.
It reflects a larger issue for Nigeria, which is facing shrinking investment and hasn’t been able to meet its OPEC+ oil-production quota in order to benefit from a surge in prices.
The TNP was illegally tapped in about 150 places, the Petroleum and Natural Gas Senior Staff Association of Nigeria said in March when local government checked some of the areas where the theft occurred.

Oil & Energy

Chevron Refutes Involvement In Niger Delta Creeks’ Oil Theft

Published

2 weeks ago

September 11, 2023

The Tide

Chevron Nigeria Limited (CNL), operator of the joint venture between the Nigerian National Petroleum Company Limited and CNL–NNPCL/CNL JV, has refuted alleged involvement in crude oil theft in the Niger Delta creeks.

The refutal followed the publication of an online media platform blaming international oil companies, with particular reference to Chevron and another IOC, in the report purportedly attributed to the Chairman of the House of Representatives ad hoc committee set up to investigate crude oil theft in the region.

In a Statement signed by the General Manager, Policy, Government and Public Affairs, Chevron Nigeria Limited, Esimaje Brikinn, and made available to journalists in Warri, Delta State, at the Weekend, the company stated that though it is aware of the online media report, “it is untrue, incorrect, and made without any basis”.

According to him, CNL’s commitment to working with government agencies and others to prevent oil theft and its impact on the environment was recently commended by the Special Investigation Panel on Oil Theft/Losses in Nigeria set up by the Federal Government during their visit to CNL’s operation.

While reiterating Chevron’s commitment to supporting the collaborative efforts to prevent oil theft and pipeline vandalism in its area of operation, the statement affirmed that illegal bunkering and oil theft in the Niger Delta region “has negatively impacted CNL’s operation and has devastating effects on the nation’s economy and the environment in the Niger Delta region.

“CNL therefore pledged to continue to monitor the environment in its areas of operations and report any suspected illegal activity and breaches to the relevant Government Security Forces and regulatory agencies”.

The statement stressed that CNL has helped in reducing pipeline vandalism and oil theft in the Niger delta region by collaborating with communities around the areas of the company’s operations to set up the Community Pipeline and Facilities Surveillance Programme (CPFSP) in 2005.

“Through the CPFSP, CNL continues to tackle the challenge of oil theft and pipeline vandalism and engage the community youth in pipeline surveillance to reduce oil theft in CNL’s area of operation.

“CNL also deploys security surveillance equipment and other technologies in addition to physical water-borne patrols by the CPFSP and the government security forces.

“CNL is committed to the highest ethical standards and business principles. CNL operates as a responsible company and conducts its business in full compliance with the law and a socially and environmentally responsible manner.

“CNL will continue to work with the Nigerian government towards the development of the oil and gas industry and the Nigerian economy generally”, it stated.

Oil & Energy

Oil Theft: Reps Committee Surmons NNPC, NIMASA, NIWA CEOs

Published

2 weeks ago

September 11, 2023

The Tide

The House of Representatives ad hoc committee investigating crude oil theft has surmoned the appearance of the Group Chief Executive Officer of Nigeria National Petroleum Company Ltd (NNPC), the Nigeria Maritime Administration and Safety Agency (NIMASA) and the Nigeria Inland Waterways Authority (NIWA).

Chairman of the probe panel, Rep Alhassab Rurum, who gave the ruling in Abuja, said the heads of the agencies must appear before the committee on Wednesday, September 11, and in person.

Rurum noted with dismay the situation where the heads of the agencies invited did not appear but sent their directors as representatives.

He stated that most of the invited CEOs wrote to the committee asking for permission to be represented by their subordinate as they were not disposed to appear in person and honour the committee’s invitation.

Rurum, however, said the committee had the powers to invite and cause appearance of any individual, government officials including corporate entity charged with the responsibility of administration of public funds.

The ad hoc committee chairman insisted that the invited CEOs of the agencies must come with a list of all other agencies working in export terminal of all the nation’s oil sector.

At the hearing, the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigeria Upstream Petroleum Regulatory Authority (NUPRA) said pipelines and flow stations were the major targets of oil thieves.

They blamed faulty metering procedure, faulty instrument and lack of technology as impediments in the efforts of agencies of the Federal Government in tackling oil theft.

Oil & Energy

Protest: Commissioner Urges Dialogue Over PIA Implementation

Published

4 weeks ago

August 28, 2023

The Tide

Delta State Commissioner for Oil and Gas, Olorogun Vincent Oyibode, has called on the protesting host communities to Otumara Flow Station of the Shell Petroleum Development Commission (SPDC) in Warri South West Local Government Area to engage in a friendly dialogue with the multi-national oil firm over the implementation of the Petroleum Industry Act (PIA).
Oyibode, who made the call while briefing journalists on the outcome of his visit to Otumara Flow Station and the host communities, in Warri, at the weekend, urged the protesting communities of Ugborodo, Deghele and Ugboegungun not to shut down the operations of the SPDC.
According to the commissioner, “the 20,000 barrels per day SPDC facility in Otumara is of great economic importance to the Federal and Delta State Government”.
He said the state government would continue to intervene where and when necessary just as he implored the host communities and SPDC to explore the benefits of dialogue in resolving the disagreement.
Oyibode also stated that the Governor Sheriff Oborevwori-led government was determined to provide an enabling environment for international oil companies and investors in the State.
The commissioner said, “the management team, Ministry of Oil and Gas visited the protestants at the Otumara community where the Flow Station is sited.
“We held discussions with leaders who expressed their concerns. We also advised that the internal wranglings within critical stakeholders over the name for the HCDT should not lead to shutting down of Otumara Flow Station and SPDC’s operations”.
The commissioner insisted that the disagreement between the host communities to Otumara Flow Station and SPDC which has to do with setting up a Host Community Development Trust was a matter that can be resolved amicably, adding that “the Delta State Government is on top of the issue.
“We appeal to the host communities of Ugborodo, Ugboegungun, and Deghele not to shut down the operations at the Otumara Flow Station, while the negotiations continue for a win-win resolution”.
It would be recalled that the protesting communities had earlier called on the SPDC to visit the host communities in line with the PIA 2021 provisíons which empowers communities to set up a Host Community Development Trust Fund (HCDTF).
However, following an alleged illegality of the multinational against the spirit of the PIA by refusing to engage the three communities of the Otumara Flow Station in the Fund, it ignited a protest and upon the expiration of the 48- hour ultimatum gained entry into the facility with the threat of a total shutdown.