It Is Time To Reduce The Profitability Of Vandalised Pipelines

Nigeria refinery
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By Adewole Kehinde, Abuja.

The Federal Government spends N60 billion annually in repairs and maintenance of vandalised pipelines was the major headline of all the Dailies on Tuesday, 6th July, 2021.

Nigeria refinery
Nigeria refinery

There are concerns over the activities of criminals, who continue to break pipelines to siphon crude oil and petroleum products, despite a clampdown by security agencies.

On Monday, a town hall meeting focused on Protecting Oil and Gas Infrastructure took place in Abuja.

A total of 1,161 points on petroleum products pipelines were vandalised between January 2019 and September 2020 across the country.

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari however said in the last few years the number of vandalism had reduced drastically from 623 cases to 94.

He said, “Pipeline vandals and criminal gangs operating along system 2B axis have stolen about 307.994 Million Litres of PMS valued at N41.049bn

“System 2E lost 26Million Litres of PMS valued at N3.468bn due to activities of vandals in 2019.

“From January-December 2020, Losses along system 2B amounted to 146.809 Million litres of PMS valued at N22.487bn.

Some notable hotspot areas are Abagbo, Ikate, Akaraba, Ilashe, Imoren, Ijegun, Ikotun, Baruwa, Oke Odo, Warewa and Ilara.

“System 2E lost 0.237Million Litres of PMS valued at N36.3million in 2020.

“From January-May NNPC pipeline segments have suffered 203 pipeline breaks with System 2B having 80 pipeline breaks and System 2E, a total of 114 pipeline breaks with a total cumulative loss of 39million litres amounting to N5.973bn.”

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Products theft and vandalism have continued to destroy value and put NNPC at a disadvantaged competitive position, according to NNPC data obtained on Wednesday, 31st March, 2021.

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The NNPC said in collaboration with the local communities and other stakeholders, it continuously strove to reduce and eventually eliminate this menace.

In December 2020, 43 pipeline points were vandalised representing about 18.60 per cent increase from the 35 points recorded in November 2020.

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.

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 spent N1.80bn in July; N1.49bn in August; N4.41bn in October, and N3.68bn in November. No repairs and management cost was incurred in September, according to the data.

In January, the corporation said 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.
Mal Mele Kyari urged that Citizens should take the Pipelines as critical national assets and report activities of suspected vandals to relevant authorities.

“Community Leaders should ensure the Pipeline right-of-way is not encroached to avoid unfortunate incidences of fire outbreaks, Mal Kyari said.

Significant number of crude oil pipeline vandalism in the Niger delta region of Nigeria were carried out by the militant groups on the pretext for a better environmental management and development of the region.

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Pipeline vandalism has increased in the country since February, reducing crude oil production to less than one million barrels per day.

What are the causes of pipeline vandalization?

The causes include factors such as poor management; poor governance, weak legal system, and environmental degradation are among factors that encourage crude oil pipeline vandalism in the Niger delta region.

What are the effects of pipeline vandalization?

For natural gas pipelines, the greatest risk is associated with fires or explosions caused by ignition of the natural gas; this can cause significant property damage and injuries or death. Additionally, the release of natural gas, primarily methane which is a very potent greenhouse gas, contributes to climate change.

The Best Method To Stop Vandalism

“I will suggest deployment of technology, which is either putting a detection system along the line or drones to monitor. There are various forms of technology like the defiled optic system.”

Also, there is need for an intervention system. An intervention system means when you have detected it, something that must be done immediately. You need human beings to go there and take actions and that means it has to be purposeful, well organized and finally, a legal system such that when you catch somebody, you prosecute. If after arrests nothing happened, that encourages negative actions, but going forward it is quite a complex scenario that has solutions.

Also, there is the need for engagement of stakeholders; the government, community and all manner of people that have direct impact on the pipeline.

Even though the Nigerian Navy and the Nigeria Security and Civil Defence Corps are saddled with the responsibility of safeguarding the oil pipelines, the Federal Government has to set up a system to guide the pipeline because it is a national asset.

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It is a very strategic national asset and anywhere in the world, you guide your pipelines. By using technology, engaging the communities around there and/or putting up a proper security, including military, but you have to guide your pipelines.

It requires, again, the people around the area because they are the first and primary line of defence for the pipeline. Somebody and somehow will know that something is going to happen and report it somewhere.

Conclusively, I will recommend the use of the Automated Oil and Gas Pipeline Protector which has been conducted in Effurun, Delta State, Nigeria.

I learnt the system demonstrated the ability to detect a vandal digging within 20 seconds of the activity’s commencement.

The system also demonstrated the ability to alert the appropriate authorities via text messages containing the date, time, type of activity detected, alarm confidence rate, GPS location and driving directions to the vandalization site.
Future work includes the integration of a line of sight (LOS) drone to assist local authorities in navigating and mobilizing to the vandalization site with the appropriate number of armed personnel to handle the vandals.

Group Managing Director (GMD) of the NNPC Mele Kyari
Group Managing Director (GMD) of the NNPC Mele Kyari

The system will also be deployed to provide constant monitoring of a buried oil and gas pipeline at the Federal University of Petroleum Resources for further data gathering, testing and analysis.

Money spent on vandalized pipelines will go a long way to improve the welfare of the citizens as well provide employment and empowerment for the teaming youths especially in the communities where these pipelines are buried.

Adewole Kehinde is the Publisher of Swift Reporters and can be reached via 08166240846, 08123608662

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