Crude Oil Theft: Illegal Connections Hit 4,800 – Kyari

Group Chief Executive Officer, Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari, has said there are over 4,800 illegal connections on crude oil pipelines in the Niger Delta region.
Kyari, who described oil theft and vandalism in the region as a calamity, warned that this could frustrate the projections of the Federal Government.
Speaking when he appeared before the Senate Committee on Appropriation on the proposed budget for 2024, in Abuja, Friday, Kyari said the daily oil production would depend greatly on the security situation in the oil rich region.
He said, “the situation we have in Niger Delta in terms of security is a calamity. We don’t have that anywhere in the world. To engage non-state actors as last resort as solution is abnormal. But we have to respond abnormally.
“You have over 4,800 illegal connections on our pipelines. That means, within every kilometer, you have an insertion. Even if you seal all the insertions, you can’t get what you want in terms of production.
“In the Niger Delta, people are coming from all parts of the country to do illegal refining. That’s why we engage locals to deal with it.  We will contain this challenge. We are doing everything possible to restore sanity. What is happening is a colossal damage to the environment and the host communities”.
Kyari welcomed  the projection of daily crude oil production of 1.78 million barrels at $77 per barrel of crude, explaining that OPEC restriction to a daily production of 1.5 million barrel does not affect condensates, which he said fetches Nigeria plenty of money.
According to him, Port Harcourt refineries would come on stream in December while  Warri Refinery would resume production in first quarter of 2024, giving December 2024 as production target of the Kaduna Refinery.
Kyari disclosed that the entity would have liquidated as the company’s cash flow could no longer sustain the burden of the subsidy regime, but for the quick and bold intervention of President Bola Tinubu to terminate the fuel subsidy regime saying, “i will advise that we stick to the submission of Mr. President on the quota
“There is no way we will get crude oil less than $70. Once economies  are growing, there will be sustained demands  for crude oil in our country and other countries. The estimates supplied  by Mr. President is realistic.
“When we say production, we mean total production of crude  oil and condensates. So we combine condensates and crude oil as total marginal production. So we know our estimates is realistic. There is no curtailment on condensates from OPEC”.
Kyari further gave an update on the Turn Around Maintenance of the nation’s four refineries.