Pipeline Vandalism: NUPRC Trains Navy, Customs on Alternative Crude Oil Evaluation Operations

*Says crude oil theft figures falling 

*FG partners FOSSREA to unlock Nigeria’s hydrogen potential 

*Govt warns filling stations against selling petrol in containers

Emmanuel Addeh in Abuja

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has continued its efforts to combat crude oil theft and losses and ramp up hydrocarbon production in Nigeria as oil thieves continue to cause damage to regular crude oil transportation facilities.
To this end, the commission said it has hosted a two-day training for officers and men of the Nigerian Navy and Nigeria Customs Service (NCS) on alternative crude oil evacuation operations and export ‘fiscalisation’ at terminals.

The Commission Chief Executive, Engr. Gbenga Komolafe, represented by the Executive Commissioner, Development & Production, Mr. Enorense Amadasu, emphasised the importance of the training, highlighting its role as a vital platform for interaction, collaboration and development of initiatives aimed at restoring production levels.

A statement by the organisation quoted Komolafe as saying that crude oil theft had risen from a daily average of 21,000 bpd in 2016 to 103,000 bpd in 2021 before dropping to an average of 15,000 bpd in 2024.
He added that such high levels of theft had led to the frequent shutdown of trunklines such as the Trans Niger Pipeline, Nembe Creek Trunkline among others, which pose a risk to the oil and gas industry as it increases production costs and reduces revenue derivable from the produced hydrocarbon.

According to the chief executive, pipeline transportation remains the most cost-effective method of crude oil evacuation globally.
The persistent issue of pipeline sabotage, he said, has resulted in substantial losses, thereby necessitating the exploration of alternative crude oil evacuation methods to mitigate the losses and ensure consistent production.
He added that NUPRC had sustained its commitment in implementing target initiatives and various measures to combat vandalism and crude oil theft  while some companies had opted for an alternative evacuation system.

This approach, he stated, involves utilising trucks, barges, and shuttle vessels to transport produced crude oil to land terminals or floating facilities, despite the increased costs associated with this method.
Komolafe further emphasised that the commission in conjunction with other relevant government agencies had provided the required support to the companies through approvals, permits, monitoring and supervisions to ensure compliance with the regulatory requirements and proper accounting for produced hydrocarbon.

“On transparency, accountability and visibility, the CCE stated that the commission has granted relevant personnel of the office of the Chief of Defence Staff (CDS), the Nigerian Navy and the Department of State Service (DSS) access to the barging and trucking portals.
“This is for visibility over approvals granted by the commission in addition to the arrangements for officers of the Nigerian Navy to participate in the crude oil export fiscalisation process at terminals, aimed at increasing their visibility in the export process,” the statement added.

Representing the CDS, Commodore O.E Oladipo, underscored the significance of the collaborative effort between the NUPRC and the Nigerian Navy, emphasising its importance to substantially enhance Nigeria’s hydrocarbon production capacity.
 He expressed his appreciation to the commission for its innovative and creative approach in organising the training programme, which demonstrates a commitment to finding effective solutions to the challenges facing the industry.

Also as part of efforts to ensure that Nigeria meets its need for clean energy, the Ministry of Petroleum Resources has met with a delegation from the Foundation for Sustainable Social Responsibility in Emerging Africa (FOSSREA) to unlock Nigeria’s hydrogen potentials.
This was contained in a statement by the Deputy Director Information  and Public Relations, Oluwakemi Ogunmakinwa in Abuja.

In his opening remarks at the meeting, the Director of Upstream Department who represented the Permanent Secretary in the Ministry, Kamoru Busari, emphasised the ministry’s commitment to exploring innovations that would increase clean energy usage and penetration in Nigeria.
Earlier in his remarks, the  Chairman of the Foundation for Sustainable Social Responsibility in Emerging Africa (FOSSREA), Aliyu Mijinyawa informed the meeting that the delegation was in the ministry to explore areas of collaboration and to formally seek the ministry’s participation at the forthcoming National Conference and Exhibition on Hydrogen in Nigeria.

He added that their mission was also to inform the ministry that they are in discussions with investors, financiers, and foreign countries interested in Nigeria’s hydrogen sector, noting that the  stakeholders were eager to invest in Nigeria, recognising the country’s efforts to lay the groundwork for hydrogen development.

Meanwhile, the federal government has urged retail outlets to stop the sale of petrol in Jerry cans or have their licences suspended.

This was disclosed when the downstream regulator hosted a stakeholders’ meeting involving major retail outlet managers in the Federal Capital Territory (FCT).

The meeting was jointly addressed by the Executive Directors of Distribution Systems, Storage and Retailing Infrastructure, Mr. Ogbugo Ukoha and that if Health, Safety, Environment and Community, Dr. Mustapha Lamorde.

A note from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said the regulator pointed the filling stations to the proliferation of illegal sale of petroleum products especially petrol in jerry cans around the metropolis and particularly along the retail outlets’ roadways.

“They were warned to desist from servicing these illegal peddlers, failure to do so would result in the suspension of their retail licences.

“Thereafter, a team lead by both executive directors and in collaboration with security agencies conducted surveillance to some outlets around the metropolis and in the process was able to apprehend some people who were operating illegal fuel dumps around the FCT,” it stated.