By CLARA NWACHUKWU

For years, the oil and gas industry has continued to suffer from pipelines vandalism both in the upstream and downstream operations.

It is estimated that Nigeria loses about $6bilolion yearly from crude oil theft, while losing N165billion to products theft in three years – 2009 to 2012, even as the sub-sector has witnessed relative stability in fuel supply and distribution nationwide in the recent time.

The increase in pipeline vandalism has become a daunting challenge for any administration. This, notwithstanding, the Group Managing Director, Nigerian National Petroleum Corporation, NNPC, Mr. Andrew Yakubu, is resolute in his drive to sanitize the downstream sub-sector of the industry.

Outlining objectives

Right from his inaugural address to staff and NNPC management in July 2012, Yakubu made it clear that the rehabilitation of decaying downstream infrastructure, which include pipelines, PPMC inland depots and jetties will be central to his objectives as the GMD.

It is worthy to observe that while the 21 PPMC In-land depots across the country have remained largely under-utilized due to their near moribund state.

As a result, the operations of the Pipelines and Products Marketing Company, PPMC, have been seriously encumbered by the activities of pipeline marauders, thus making the task of conveying refined petroleum products across the over 5,000km of vast network of pipelines a living nightmare.

Pipeline breaks

To underscore the ravaging menace, Yakubu revealed that pipelines traversing from Atlas Cove, Lagos to Ilorin, Kwara state popularly called System 2B, experienced about 774 break points within three months from August to October 2012, broken down as follows:

·Atlas Cove and Mosimi depot, Ogun state – 181 break points

·Mosimi to Ibadan, Oyo state – 421 points

·Mosimi to Ore, Ondo state – 50 vandalized points

·Ibadan and Ilorin – 122 break points

“PIB or no PIB, privatization or no privatization, no industry can survive under this kind of arrangement,” he lamented.

During his visit to Arepo for an on-the-spot assessment of the ruptured System 2B Pipeline on January 14, the NNPC boss unfolded short and long term measures to protect the pipeline.

These included, the immediate mobilization of engineers to site to clamp and fix the ruptured points to restore pumping of petroleum products to avert scarcity;  and clearing of the pipeline Right of Way to make the area more accessible and less attractive to vandals.

He also spoke about the provision of platforms for security men to effectively monitor movements in and around the area, and the deployment of a technology to make the pipeline inaccessible to oil thieves and vandals.

The promise became a reality on February 26, when he again returned to Arepo visited to inspect the ongoing clearance of the System 2B right of way by engineers from the Nigerian Army Engineering Corps.

There, he also announced the deployment of a state-of-the art Horizontal Direct Drilling System, HDD, designed to re-direct the pipelines and ensure restricted access by vandals and hackers.

The engineering firm handling the project ENIKKOM, said the technology also affords it to monitor the pipeline on a regular basis.

In his remarks, the Managing Director, PPMC, Prince Haruna Momoh, said with the 258 tanks in the 21 depots with combined capacity of 2.6 billion litres of petroleum products, the NNPC is ready to constantly wet the nation with products.

On behalf of the Nigerian Army, Brig. Gen. Emeka Okonkwo, promised to re-establish the right of way of the NNPC pipeline from Mosimi to Ibadan within 90 days.

Alternative distribution system

The legion of attacks meant that the corporation had to rely more on trucking for the movement of petroleum products from the depots to different parts of the country where they are needed.

The talk of using trucking as an alternative means of moving products, the NNPC noted comes with a massive cost which makes the undertaking not only expensive but far less effective, and with the attendant operational hazards.

Records indicate that with the incessant attacks on the nation’s vast array of pipelines about 70 percent products distribution to the hinterlands is done through trucking, also known as bridging.

This requires massive fleet of up to 1,212 petroleum trucks load out from the depots every day to meet the daily estimated national consumption.

At an average vehicle turnaround of about 8-10 days from the South to the North, a minimum of 10,000 trucks are required to ply the roads daily.

Walking the talk

Against this backdrop, the Yakubu sought the support of the Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, to take on the gauntlet, and in the nine months of his tenure, the downstream sector has witnessed tremendous activities.

Accordingly, the aggressive facilities rehabilitation programme has witnessed the revamping of the hitherto comatose PPMC Benin Depot, which was re-commissioned; the rehabilitation of the 89.9km Warri-Benin pipeline; re-commissioning of the Aba Depot; and the recovery of the Port Harcourt/Aba pipeline to restore product supply to the depot. Also, the Okrika PPMC Jetty has been rehabilitated and re-commissioned, while rehabilitation and expansion of the Atlas Cove Jetty is still ongoing.

Pledges of support

At the re-commissioning of the Benin Depot by the minister, Alison-Madueke noted that the depot had been comatose since 2005. “As an industry, we are extremely satisfied that the transformation agenda of the President in the oil and gas industry is coming to fruition.

We are grateful to the Joint Task force for the level of support they have given the petroleum sector especially in the area of pipeline vandalism. It clearly shows how successful we can be as a people if we come together to combat a scourge,” she said.

The Edo State Governor Adams Oshiomole pledged to mobilize resources as well as the people of the state to combat pipeline vandalism which he described as a national menace.

His Abia State counterpart, Dr. Oji Kalu, at the re-commissioning Aba Depot charged the people to be the eyes and ears of government and report every illegal movement around the pipelines to security agents.

He even said he would propose a bill to the State House of Assembly to make pipeline vandalism, oil theft and similar economic crimes capital offences that will attract the death penalty to deter offenders.

Similarly, at commissioning of the minister noted that the economic benefits of the Jetty to Okrika community and the entire nation are immense, as it guarantees the evacuation and distribution of products from the Port Harcourt Refinery to other parts of the country.

The NNPC said the jetty has a number of inbuilt new safety and security features with close circuit television, CCTV for effective surveillance.