Nigeria Loses 759,000 Litres of Crude Products To Vandalism


2013-01-15T100913Z_1088084492_GM1E91F171101_RTRMADP_3_NIGERIA-OIL-THEFTNigeria has lost over 759,000 litres of petroleum products to pipeline vandalism in four years ( 2009 to 2012), the Managing Director, Pipeline Products Marketing Company(PPMC), Haruna Momoh, has said.

At a conference in Lagos, Momoh said 712,779 litres of petrol, 9,548 litres of kerosene and 37,054 litres of diesel were lost during the period.

Giving a breakdown, he said  175,425 litres of fuel were lost in 2009, 161,174 (2010), 187,192 (2011) and 188,985 litres in 2012, while 18,044 litres, 685 litres and 18,325 litres  of diesel were lost in 2010, 2011 and 2012. He added that in 2010, 2,099 litres of kerosene were lost and 7,449 litres in 2011.

He said the country bore the costs of repairs and security, among others.

A Lagos Zonal Trustee, Independent Marketers Branch (IMB) of the National Union of Petroleum and Natural Gas (NUPENG),  Kofo Oladehinde, said vandalism was a problem in the sector, adding that it aws affecting downstream operations.

Oladehinde said operators across the distribution value chain were affected by the activities of the vandals.  He said: “Atlas Cove is a big oil installation that supplies petroleum products to many depots. From Atlas Cove are pipelines linking depots together. These pipelines pass through villages and people go to those villages to break them. Whenever  people break the pipelines, they disrupt operations of the depots and the downstream operators that sell fuel to consumers.  The cost implication is high to the government, the depots and other stakeholders.”

Also, the Managing Director, Niger Delta Petroleum Development Company, Layi Fatona, said  pipeline vandalism has devastating effects on the economy.

Fatona said pipelines transporting crude and refined petroleum products were vandalised at will, adding that the perpetrators are unmindful of the costs to the economy.

‘’Pipeline vandalism can be likened to the dreaded disease called Ebola, which the country is battling to contain.As a small indigenous oil and gas producing  company, we produce oil and pass it through the pipe to Bonny in Rivers State. It is not all the pipelines that are owned by the company. A majority of the pipelines are owned by the Shell Petroleum Development Company (SPDC) in partnership with the Nigerian National Petroluem Corporation (NNPC).

‘’Whenever there is a problem, it affects the entire system. Last year, we  shut our operations for more than one third of the year. Imagine, a whole of Nigerian production system being shut for a third of the year, automatically that is a third of the revenue, and then, you come into environmental degradation, unnecessary cost to repair is quite higher. it is a scourge.’’

Fatona said people vandalise pipelines and steal the crude oil for sale, adding that there is a big market for  the product outside the country.

‘’We know there is a ready-made international market for crude oil stolen through various methods in Nigeria. But the questions are: ‘Who are the buyers? Who are the people supporting those that engage in crude oil theft or pipeline vandalism?’ We all need to provide solutions to these problems if the sector must move forward,’’ he said.