Petroleum sector loses N220b to pipeline sabotage

Rate of vandalism drops by 79 per cent
Nigeria’s petroleum sector in the last eleven months, lost over N220 billion to pipeline sabotage.

According to the Nigerian National Petroleum Corporation (NNPC), this revenue would have created more profit and jobs in the oil and gas sector.

The Corporation stated in its monthly financial report released Monday, that pipeline sabotage in the country continues to reduce due to Federal Government and NNPC’s sustained engagements with the stakeholders.

Pipeline vandalism remains the biggest threat to crude and refined products supply in the country with attendant huge losses.

Although there have been allegations of profiteering and collusion among the top political class and the military, ending the menace will definitely improve the fortunes of both the upstream and downstream sectors of Nigeria’s oil and gas industry.

The report disclosed that only 43 downstream pipeline vandalised points were recorded in November against 101 in October 2016.

This, it noted, represented 78.92 per cent reduction relative to November, 2015, which was 204 vandalised points.

It stated: “Notwithstanding the reduction in downstream vandalism, NNPC undeniably needs the support of Nigerians especially in areas of security and Infrastructural integrity.

“Favourable business environment will afford NPDC to reverse an average of over N20 billion monthly lost to pipeline sabotage, which would have created more profit and jobs.”

It disclosed that total export proceeds of $162.40 million were recorded in November 2016 against $97.29 million in October 2016.

NNPC said that contribution from crude oil amounted to $96.31 million after adjusting for $2.50 million lifting deposit utilised earlier.

It added that gas and other proceeds was $66.09 million. “The total receipt of $162.40 million remitted to fund the Joint Venture Cash Call for the month of November 2016 to guarantee current and future production. The poor performance is attributable to attack and sabotage of oil facilities in the Niger Delta.”

The report stated that NNPC transferred the sum of N43.33 billion to the Federation Account during the month under review from the net domestic crude oil receipt and N2.43 billion from gas receipts.

“Also, the 28th installment of the refund to government of N6.33 billion was remitted to Federation Account,” it added.