NNPC to Resume Pumping of Crude Oil from Vandalised Pipeline in a Week, Says Kyari

•Declares saboteurs will face the law 

•Komolafe insists developing countries should be allowed to exploit fossil fuels 

•Nigeria backs OPEC’s decision to cut 2m bpd oil production

Emmanuel Addeh in Abuja

The Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Mallam Mele Kyari , yesterday said that the damaged major pipeline that has hobbled Nigeria’s oil production for months will come on stream in a week.

Speaking during a summit organised by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), in Abuja, he stated that the country was recording successes in its fight against crude oil thieves and pipeline vandals.

For months, the Trans-Forcados Oil Pipeline System, the second longest pipeline network in the Niger Delta has been down, affecting the export terminal and leading to closure of about 20 oilfields.

Kyari stated that if left uncurbed, the activities of the vandals would destroy the oil and gas industry and subsequently frustrate the NNPC’s mandate of guaranteeing energy security.

 “The government security agencies in partnership with NNPC and other companies are on the table today because if we don’t arrest pipeline vandalism, we will have no industry.

“And more than anything else, it will completely question any possibility of energy security for our country. For NNPC, we are by law required to be the guarantor of energy security for this country. This is very broad, very tough and very demanding. It means that we must supply energy to this country in all it’s forms.

“And until we arrest the current situation of theft and vandals action, it’s very difficult to take the next step. I am glad to share with you today that monumental progress has been achieved and I can tell you that in the next couple of days maximum a week, our pipelines assets will come back on stream.

“This will no doubt provide the resources that we need to go back to work to reinvest and also provide resources for our country so that other infrastructure development in our country can be delivered,” he stated.

While  calling for the support of all stakeholders in the oil and gas industry to stop the menace of crude oil theft and pipeline vandalism, he stressed that all those involved in the crime will go unpunished.

Kyari added that that many of the illegal pipelines connection through which crude oil was being stolen were done with the connivance of the communities, security agencies and some oil workers.

 “This is clearly an area that requires all of us. And whoever, anywhere, whether in NNPC, regulators, security agencies or wherever you are and whoever you are working for, as long as we know such people, please report at the portal because it is the enemy of all of us.

“Many of the connections that you have seen could not have been delivered except with the involvement of professionals, it’s not possible. They are in our midst, the ones we know, we must put them on the table and that is what we are doing. We will spare no one in this action so that ultimately we can get back our assets.

“I am happy with the support we are getting from government security agencies and it is working. Also the involvements of private security is working and it has helped us.

“Many of the discoveries we made today could not have been possible without local knowledge,” he explained.

Also speaking on the topic: “Energy Transition and its Effects on the Nigerian Workforce”, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Mr Gbenga Komolafe, has said developing nations should be allowed to exploit fossil fuels sustainability.

 According him, in recent times the clamour for clean energy has altered the world’s energy landscape and caused huge investment de-prioritisation towards fossil fuels as the dominant fuel of choice.

“ I believe that energy transition towards low carbon emission is valid, however considering the fact that developing nations contribute a negligible amount to global carbon emission, they should be allowed to produce fossil fuels in a sustainable manner and utilise the proceeds to catalyse economic growth and shared prosperity based on the principle of a just energy transition,” he stressed.

He noted that the picture was not totally gloomy, as projections show that over the next two decades, rapid population growth and industrialisation are expected to drive strong energy demand growth across Nigeria and Africa—including for fossil fuels, which will result in an increase in job opportunities.

“ Estimates show that the energy demand across Africa in 2040 could be around 30 per cent higher than it is today, compared with a 10 per cent increase in global energy demand,” he explained.

According to him, what is paramount at this time is for the nation to weigh her options and strengthen the resilience and sustainability of its resource base in order to build robust positions in the new energy businesses of the future.

He stated that gas reserves would be a more resilient energy source under a range of energy transition scenarios, maintaining that Nigeria must begin to develop local innovative financing solutions to develop its huge gas resources as the number of international traditional investors have dropped drastically.

“Energy transition is valid, however the timing is uncertain. We are very aware that energy transition may threaten job security and stifle investment in the Nigerian oil and gas industry.

“However, I align fully with the policy of government which is hinged on ensuring that we utilise our huge gas resources as a transition fuel towards cleaner energy sources. For the government, we must utilise our hydrocarbon resource for industrialisation and economic growth,” he noted.

 Meanwhile, the Minister of State Petroleum Resources, Chief Timipre Sylva, yesterday said that the decision by the Organisation of Petroleum Exporting Countries (OPEC) to cut two million barrels of crude oil production per day was a unanimous one.

In a statement he personally signed, Sylva said the step was taken to stabilise the market and not for any ulterior motives.

“The decision taken by the OPEC+ during our meeting on 5th October, 2022 to voluntary adjust crude oil production downward by 2 million barrels per day was unanimous. It was taken for the exclusive purpose of ensuring the long-term stability of the oil market.

“It was purely to balance supply and demand, and forestall a degeneration of the current volatile oil market to a situation where larger production cuts will be required for balance it.

“This proactive decision was based on a thorough assessment of market conditions as OPEC plus has always been guided,” he stated.

Penultimate week, OPEC+ agreed a steep oil production cut, curbing supply in an already tight market and causing one of its biggest clashes with the West as the United States government called the surprise decision ‘short-sighted’.

 Saudi Arabia said the cut of 2 million barrels per day (bpd) of output equalling  2 per cent of global supply was necessary to respond to rising interest rates in the West and a weaker global economy.

But the White House while kicking against the move,  said President Joe Biden would continue to assess whether to release further strategic oil stocks to lower prices.

“The President is disappointed by the short-sighted decision by OPEC+ to cut production quotas while the global economy is dealing with the continued negative impact of (Russian President Vladimir) Putin’s invasion of Ukraine,” the White House said.

Separately, it stated that Saudi Arabia “coerced” smaller oil-producing members of OPEC to agree to production cuts that the Saudis knew would “increase Russian revenues and blunt the effectiveness of sanctions” designed to combat Russia’s aggression in Ukraine.

Many OPEC countries have since come out publicly to refute the insinuation that the decision was taken as a result of Saudi Arabia’s influence in the organisation.