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NNPC pipeline repairs gulps over N53bn in 11 months

By News Desk

the Nigerian National Petroleum Corporation (NNPC) has disclosed that total of 441 points on petroleum products pipelines was vandalized in 2020, compared to 1,484 points in 2019, saying no fewer than N53.36bn was spent on pipeline repairs and management from January to November.

It explained that the products theft and vandalism have continued to destroy value and put NNPC at a disadvantaged competitive position.

The national oil company in its latest monthly report said that it continuously strove to reduce and eventually eliminate the menace through collaboration with the local communities and other relevant stakeholders.

The report said that in December 2020, 43 pipeline points were vandalised representing about 18.60 per cent increase from the 35 points recorded in November 2020.

The NNPC said Mosimi Area accounted for 56 per cent of the vandalised points while Kaduna Area and Port Harcourt accounted for 33 per cent and 12 per cent respectively.

The number of pipeline points vandalised stood at 23 in October, 21 in September, 37 in August, 36 in July, and 33 in June. The corporation recorded 37 vandalised points in May, 65 in April, 19 in March, 32 in February, and 60 in January.

It spent N5.48bn on pipeline repairs and management cost in January; N6.74bn in February; N7.69bn in March; N7.84bn in April; N7.99bn in May and N6.24bn in June.

According to the data, the corporation spent N1.80bn in July; N1.49bn in August; N4.41bn in October, and N3.68bn in November. No repairs and management cost was incurred in September.

In January, the national oil company said a total of 96 companies from various jurisdictions had indicated an interest in undertaking the rehabilitation of its downstream facilities, ranging from critical pipelines to depots and terminals, through the Build, Operate, and Transfer financing model.

The Managing Director of the Nigerian Pipelines and Storage Company, Mrs Ada Oyetunde, said the exercise was in conformity with the mandate of the Federal Government to prioritize the rehabilitation of critical downstream infrastructure across the country.

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