Pipeline Protection: Engaging private security firms abnormal, but necessary-Kyari

*How NNPCL detected 4,800 illegal connections on oil pipelines

*Presidency woos Shell for investment

By Tunde Opalana & Ukpono Ukpong

The Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPCL), Mele Kyari, on Friday advanced reasons for engagement of private security companies to protect petroleum products pipelines, particularly in the Niger Delta region and generally across the country.

He said though it sounds abnormal to contract security of national assets such as oil pipelines to private firms, security situations in the country necessitated such alternative arrangement.

Lamenting the high rate of illegal connections on oil pipelines in the country by illegal refiners , Kyari disclosed that NNPC Limited detected about 4,800 illegal connections on over 5,000 kilometers of oil pipelines across the country.

He said that there are insertions by vandals on oil pipelines at every kilometer of pipeline network.

He commended the Nigerian armed forces for efforts in fighting vandals in the oil rich region but agreed that the military is overwhelmed, hence the need for hiring private protectors.

Kyari further the government has no option than to succumb to request for local capabilities to secure pipelines.

Reacting to a member of the Committee, Senator Konbowei Benson ( PDP Bayelsa Central) who said he, like every other Niger Deltan , can distill oil, he said the situation in Niger Delta in terms of security , is a calamity.

“As it is today, about 4,800 illegal connections are made on the over 5,000 oil pipelines across the country.

“The illegal connections on oil pipelines in the Niger Delta is so rampant that within 100kilometres of the affected pipelines , 300 insertions are made on them , which eventually made the pipe to be weak to the point of not being able to hold pressure of oil pumped , let alone , delivering it to targeted destination .

“Additionally, it is abnormal to engage non – state actors to protect critical assets like oil pipeline. We have however responded abnormally and getting results , because unlike as it was in July 2022 when less than 1.2million barrels of oil were produced by day , it has been 1 5million barrels per day within the last two to three months “, he said .

“We will contain insecurity in the oil environment. We will get there. We are going to do everything possible to engage anyone needed to be engaged. We engage host communities in monitoring and securing oil pipelines,”

Kyari gave members of the committee assurance on workability of 1.78million oil production per day and $77.96 oil price benchmark for the 2024 budget .

The NNPCL boss said the oil component of the budgetary projections are realistic and realisable despite the fact that the country presently produces average of 1.5million barrels of oil per day.

When pointedly asked by the Chairman of the Committee , Senator Solomon Adeola ( APC Ogun West ) , if the projected oil production per day , can be jerked up to 1.8million from 1.78million , he said the projections and parameters set in the proposed budget , are okay for NNPCL and realisable .

He also informed the committee members that the 1.78million barrels per day oil production for the 2024 budget , include condensate which are 200 , 000 to 300, 000 barrels per day .

He added that as a fully commercial entity now , NNPCL between July and November this year , remitted N406billion into the Federation Account as dividends .

In his remarks at the end of the interface, the Chairman of the Committee , Senator Adeola , said Kyari has strengthened their convictions on workability of the assumptions and projections of the 2024 budgetary proposals .

However, Nigerians who are optimistic that the preponderance of refineries in the country would force petrol pump price to reduce, would be disappointed at the pessimism shown by the Group Managing Director of the Nigerian Petroluem Company Ltd, NNPCL, Mele Kyari. He has stated categorically that pump price reduction was not the target of the move to create many refineries in the country.

According to him, it might be possible to have a reduction, but it is not the main objective of the refineries.

This is as President Bola Tinubu expressed optimism about the prospects of increased investments from Shell Petroleum Development Company of Nigeria (SPDC), emphasizing Nigeria’s long-term relationship with the company, which discovered the first commercial oil field at Oloibiri in the Niger Delta in 1956.

Receiving the management of Shell Group, led by its Global Integrated Gas and Upstream Director, Ms. Zoe Yujnovich, the President said his administration will continue to ensure the security and viability of existing and new investments in the country.

“We have made progress since our last meeting. I will continue to support and encourage you on this path. There is no doubt that there is a significant focus on investment in and around the continent. I am spearheading Nigeria’s global march for new investments at home.

“In view of our long-term relationship that has been established over the years, we want you to do more, and we are ready to encourage you in every way possible.

“We are very focused on resolving all investment-related issues. There is no bottleneck that is too difficult for us to remove in our determined march toward making Nigeria the African haven for large-scale investment in all key sectors. We need each other,” the President told the visiting delegation.

In her remarks, on behalf of the Shell Group, Ms. Yujnovich expressed Shell’s commitment to maintain its legacy of investments in Nigeria, particularly as the company refocuses its investment to key into new and existing opportunities in the Deepwater and Gas sector.

READ ALSO: Laolu NYC Collaborates with Music Producer Mr Eff

She outlined the company’s dedication to the development of the gas value chain in the country, including a substantial commitment of $1 billion over the next five to ten years, aimed at unlocking gas resources for domestic use and the Nigeria Liquefied Natural Gas (NLNG) project.

Furthermore, Ms. Yujnovich announced an imminent $5 billion investment opportunity in the Bonga North project off the shores of Nigeria, located in the deep water.

The Shell Global Integrated Gas and Upstream Director expressed Shell’s eagerness to proceed with this investment and outlined several prospective investments that Shell Group is eyeing in Nigeria over the short to medium term. She commended the collaboration her team has experienced with the Minister of State for Petroleum Resources (Oil), Sen. Heineken Lokpobiri and the Special Adviser to the President on Energy, Olu Verheijen, while acknowledging their roles in achieving significant progress in actualizing the potential of these projects as well as others.

“Mr. President, I want to be successful in my role, and I cannot be successful in my role unless I can find a way to bring more new investments to Nigeria.

“I have made commitments to our investors that we will continue to invest in gas and oil. In Nigeria, I see all the conditions to continue to make this partnership stronger. In the deep water, we have an imminent investment opportunity in Bonga North. This is $5 billion. I am really keen to make that investment as soon as possible. We want to continue and build a pipeline of new investments in Nigeria,” she concluded.