The Nigerian National Petroleum Company Limited (NNPCL) allocated nearly N34.47 billion over 18 months for the repair and management of pipelines due to a surge in vandalism incidents.
Recent data from the Nigerian Extractive Industries Transparency Initiative (NEITI) revealed this. NEITI’s 2021 figures displayed an expenditure of N22.05 billion on pipeline repairs and maintenance.
Moreover, between January and June 2022, NNPCL reported an expenditure of N12.42 billion on pipeline maintenance and security. In the initial half of 2021, NNPCL disclosed that 350 pipeline points were subject to vandalism.
NNPCL stated that it has been actively collaborating with local communities and other stakeholders to mitigate pipeline vandalism. Mele Kyari, the Group CEO of NNPCL, attributed the success in reducing illicit practices, such as oil theft and cross-border smuggling of petroleum products, to the introduction of Operation White and the Automated Downstream Operations and Financial Monitoring Centre. These measures allowed the corporation to effectively monitor product supply and distribution across the country, minimizing disruptions in the supply chain and substantial revenue losses.
In January 2021, the national oil company announced that 96 companies from various jurisdictions had expressed interest in rehabilitating its downstream facilities, including critical pipelines, depots, and terminals, using the Build, Operate, and Transfer financing model.
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