Nigeria Lost N27.5bn To Oil Pipeline Vandalism In 2018

The newly published oil and gas 2018 audit report has revealed that a total of N27.551billion was lost to pipeline vandalism within the year.

It stated that a total of 1,894 breaks were recorded with a loss of 204,397.07 cubic metres of crude product.

The document which was uploaded on the Nigerian Extractive Industry and Transparency Initiative’s (NEITI) website revealed that the breaks were recorded in five states.

These are Gombe, Rivers (Port Harcourt), Kaduna, Delta (Warri), and Mosimi in Lagos State.

Port Harcourt and Mosimi recorded the highest with 948 and 784, while Kaduna, Gombe and Warri had 107,43 and 12 number of breaks all respectively.

“Pipeline breaks are the result of either wilful damage to the pipelines or due to corrosion. Wilful damaging of pipelines may arise as a result of communal agitation against oil and gas producing companies that have failed to discharge their social responsibilities to the host communities. Other causes may be political or criminal.

“On aggregate, 1,894 pipeline breaks were recorded within the country in 2018. The highest number of line breaks occurred within Port Harcourt area, in Rivers State, followed by Mosimi area within Lagos State,” it stated.

A breakdown of the total loss put the quantity of Premium Motor Spirit (PMS) lost to breaks in the year at 200,423.99 cubic meters at N26.713 billion, while that of DPK was 1,238.54 cubic metres and valued at N263.808 million.

In terms of Automotive Gas Oil (AGO), a total of 2,734.54 cubic metres of AGO was lost and valued at N574.252 million.

Also, it disclosed that the amount of crude oil lost to theft and sabotage increased by 46.15 per cent in 2018 compared to 2017.

For instance, in 2018, 53.281 million barrels crude was lost, making about 16.457 million barrels increase from the 36.457million barrels lost in 2017.

The loss according to the report is valued at $3.837 billion with an average price of $72.01.

The report also disclosed that two Total Exploration & Production Nigeria Limited (TEPNG) and Shell Petroleum Development Company (SPDC) had declared force majeure due to pipeline leaks and fire outbreaks which led to crude losses in 2018.

Source: Tribune Online

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