NNPC Says It Spent N41.98bn On Pipeline Repairs In First Half Of 2020
The Nigerian National Petroleum Corporation (NNPC) says it spent a total of N41.98bn on pipeline repairs and management costs in the first half of the year 2020.
The NNPC disclosed this in its latest monthly oil report, saying, “Products theft and vandalism have continued to destroy value and put NNPC at a disadvantaged competitive position.”
It said a total of 33 pipeline points were vandalised in June 2020, representing about 11 percent decrease from the 37 points recorded in May.
The NNPC said, “Mosimi-Ibadan accounted for 33 percent while ATC-Mosimi and Warri-River Niger recorded 27 percent of the breaks each; other locations make up for the remaining 13 percent.
“NNPC in collaboration with the local communities and other stakeholders continuously strive to reduce and eventually eliminate this menace.”
The corporation said it spent N5.48bn on pipeline repairs and management cost in January; N6.74bn in February; N7.69bn in March; N7.84bn in April; N7.99bn in May and N6.24bn in June.
The corporation noted that over the years, the pipeline network had suffered incessant unauthorised interference, adding that this was one of the strongest drivers for the introduction of horizontal directional drilling to the scope of the project.
It said the new pipelines would have intrusion detection and cathode protection systems to complement the deep burial.
The NNPC has a network of pipelines across the country, totaling over 5,000 kilometres in length, to facilitate crude supply to the refineries and product evacuation from them.
The network consists of 4,315 km of multi-product pipelines and 701km of crude oil pipelines, inter-connecting 22 fuel depots, the four refineries, and the jetties at Atlas Cove and Warri.