The scourge of pipeline vandalism in the Nigerian petroleum industry took a huge toll on the production performance of the sector in 2014, resulting in the loss of N29.597 billion worth of crude oil and refined products in 3732 cases. The lost commodity included crude oil, condensate, natural gas and refined petroleum products which were either stolen or allowed to spill or leak into the environment following pipeline vandalism. However, some 32 cases of pipeline breaks resulted from operations mishaps while 3700 cases resulted from deliberate vandalism by saboteurs targeting to steal crude oil and petroleum products for personal gains.
Nigerian National Petroleum Corporation (NNPC) stated in its Annual Statistical Bulletin for 2014 that the spate of vandalism on pipelines increased by 4.54 per cent compared to the situation in 2013. The corporation said that 355,690 metric tonnes of petroleum products valued at N44.75 billion were lost in addition to 1.08 million barrels of crude oil valued at about N14.847 billion during the period under review. “A total of 3,732 line breaks was reported on NNPC pipelines out of which 3,700 was as a result of vandalism, while 32 cases were due to system deterioration resulting in a loss of 355.69 thousand metric tonnes of petroleum products worth about N44.75 billion. Also 1.08 million barrels of crude oil worth about N14.847 billion was lost in the same period.
There were 32 cases of fire incidents during the year under review.” it said. In providing breakdown of the figures, NNPC also said that the country lost 17,964 barrels of Bonny Light valued at N264.37 million, while 586,776 barrels of Escravos Light valued at N8.636 billion was lost to pipeline vandalism in the period under review. In addition, the activities of the pipeline vandals led to the loss of 341,566 barrels of Ughelli Blend valued at N5.027 billion while 62,499 barrels of Seplat blend valued at N919 million was lost in 2014.
On refined products NNPC detailed that Mosimi had the highest loss with 332,850 metric tonnes valued at N41.279 billion; Warri was next with a loss of 14,290 metric tonnes valued at N2.312 billion; while Port Harcourt network lost 7,460 metric tonnes of petroleum products valued at N958.72 million. Also, the vandalism of the pipeline network in Kaduna led to the loss of 1,080 metric tonnes valued at N200.39 million. The rising wave of vandalism, according to NNPC, impacted the industry’s upstream production performance in the year with corresponding downturn in the processing capacity of the downstream segment of the industry.
NNPC stated that the country recorded crude oil and condensate production of 798.542 million barrels in 2014, 0.24 percent less from its production in 2013, representing an average crude oil output of 2.19 million barrels per day. It added that the local refineries received a total of 25.839 million barrels (3.492 million metric tonnes) of (dry) crude oil, condensate and slops and processed 23.360 million barrels (3.157 million metric tonnes) into various petroleum products.
“The total production output by the refineries was 2.665 million metric tonnes of various petroleum products. The combined average refining capacity utilisation for year 2014 was 14.4 per cent as against 22 percent in the previous year.” In the gas sector, the NNPC noted that 28 companies produced 2.524 trillion Standard Cubic Feet, SCF, of natural gas in 2014, an increase of 8.56 per cent when compared with 2013 production. “Of the quantity produced, 2.233 trillion SCF, representing 88.53 percent of total production was utilised, while 289.60 billion SCF, representing 11.47 percent of total production was flared,” it said.