Energy

Shock as Illegal Pipeline Used to Steal Oil for 9 Years is Uncovered by NNPC Ltd.

NNPC Ltd. CEO Mele Kyari.

An illegal oil connection from Forcados Terminal that operated for nine years has been found out by the Nigerian National Petroleum Company Limited (NNPCL).

This was disclosed on Tuesday, 4 October 2022, by NNPCL Chief Executive Officer Mele Kyari at the Senate’s joint committees on Gas and Petroleum (Upstream and Downstream), where he also apologised for skipping the last briefing on health grounds.

“Oil theft in the country has been going on for over 22 years but the dimension and rate it assumed in recent times is unprecedented,” he said.

He also said a four-kilometer illegal oil connection line from Forcados Terminal into the sea which had been in operation for nine years was detected during a clampdown in the past six weeks.

Mr. Kyari added that the Brass, Forcados, and Bonny terminals were all practically doing zero production, adding, “The combined effect is that you have lost 600,000 barrels per day when you do a reality test,” he said.

“As a result of oil theft, Nigeria loses about 600,000 barrels per day, which is not healthy for the nation’s economy, and in particular, the legal operators in the field, which had led to a close down of some of their operational facilities.”

Shocked by the development, the House committee members proposed capital punishment for offenders, which they promised to present for consideration at plenary.

In addition, the joint committee chairman, Mohammed Sabo Nakudu, asked the Mr. Kyari to prepare for oversight functions on Port Harcourt and Warri refineries in order to verify claims of rehabilitation.

Following the increased oil theft in recent years, the oil company earlier said that

According to an earlier statement by the NNPCL, Nigeria loses 470,000 barrels of crude oil monthly, amounting to $700 million to oil theft.

This situation had forced the Nigerian government to launch an application in August to monitor incidence. The NNPC consequently awarded a multi-billion naira pipeline surveillance contract to an ex-militant in Delta State, Government Ekpemuokpolo, also known as Tompolo.