NNPCL reveals location of over 4000 illegal oil pipelines connection.

The Nigerian National Petroleum Company (NNPCL) has revealed to the Senate Committee on Appropriations that there are approximately 4,800 illegal connections to oil pipelines across the country.

This information was disclosed by Mele Kyari, the Group Chief Executive Officer of NNPCL, during an interaction with members of the committee on the budget for 2024.

The committee was meeting to discuss the practicality of a 1.78 million barrels per day oil production target and a $77.96 oil price assumption for the budget. This revelation of illegal pipeline connections highlights the need for increased security and monitoring of oil infrastructure in Nigeria.

The General Manager of NNPCL, Mele Kyari, has stated that despite the current production of 1.5 million barrels of oil per day, the oil component of the budget is realistic and achievable.

He also noted that there are an estimated 4,800 illegal connections on the 5,000 kilometers of oil pipelines in the Niger Delta region. These illegal connections often weaken the pipes and make them unable to withstand the pressure of pumping oil, making it difficult to transport it to its intended destination. This illegal activity has a significant impact on the oil sector, and steps must be taken to address it.

Kyari also stated that it is not normal to use non-state actors to protect critical infrastructure such as oil pipelines. However, given the current situation, the NNPCL has been forced to respond in an “abnormal” manner in order to get results. Since July 2022, when oil production was less than 1.2 million barrels per day, the NNPCL has been able to increase production to 1.5 million barrels per day within the last two to three months.

Kyari also said that the assumptions and projections for the 2024 budget are feasible. He added that the 1.78 million barrels per day oil production target for the 2024 budget includes 200,000 to 300,000 barrels per day of condensate, a type of ultra-light oil that is often found in natural gas fields. He stressed that the condensate production target was vital in making the budget workable.

Senator Adeola, the Chairman of the Committee, commended Kyari for his testimony, stating that it had strengthened their conviction in the feasibility of the assumptions and projections of the budget. Senator Adeola also emphasized the importance of addressing the security challenges facing the oil sector, as this is vital to ensuring the success of the budget.