N53.36bn SPENT ON PIPELINE REPAIRS IN 11 MONTHS ~NNPC reveals

The Nigeria National Petroleum Corporation, NNPC says it has spent N53.36bn on pipeline repairs and management cost from January to November, 2020.

The Corporation noted that the amount was spent on a total of 441 points on petroleum products pipelines that were vandalised in 2020, compared to 1,484 points in 2019.

In its latest monthly report, the NNPC also said that products theft and vandalism have continued to destroy value and put Corporation at a disadvantaged competitive position.

The NNPC said in collaboration with the local communities and other stakeholders, it continued to strive to reduce and eventually eliminated the menace.

According to a data from the NNPC, in December 2020, 43 pipeline points were vandalised, representing about 18.60 per cent increase from the 35 points recorded in November 2020.

Further more, the NNPC said Mosimi Area accounted for 56 per cent of the vandalised points while Kaduna Area and Port Harcourt accounted for 33 per cent and 12 per cent respectively.

The number of pipeline points vandalised stood at 23 in October, 21 in September, 37 in August, 36 in July and 33 in June.

The Corporation recorded 37 vandalised points in May, 65 in April, 19 in March, 32 in February and 60 in January.

The NNPC hinted 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 data from the Corporation further revealed that NNPC spent N1.80bn in July; N1.49bn in August; N4.41bn in October and N3.68bn in November.

NNPC however disclosed that no repairs and management cost was incurred in September.

The NNPC equally notes that in January, a total of 96 companies from various jurisdictions had indicated an interest in undertaking the rehabilitation of its downstream facilities, ranging from critical pipelines to depots and terminals, through the Build, Operate and Transfer financing model.

The Managing Director of the Nigerian Pipelines and Storage Company, Mrs Ada Oyetunde said the exercise was in conformity with the mandate of the Federal Government to prioritise the rehabilitation of critical downstream infrastructure across the country.

She listed the facilities that would be rehabilitated by successful bidders to include critical pipelines for crude oil supply to the refineries and evacuation of refined products, depots and terminals.

According to her, the objective is to get them ready to support the refineries when they become operational after their rehabilitation.

Poor maintenance and vandalism have left many of the depots and pipelines idle for years, with the number of fuel tankers on the roads increasing and wreaking havoc.