NNPCL: Taming the monster of crude oil theft

By Godspower Igeniwari

The Nigerian National Petroleum Company Limited (NNPCL) is daily contending with a deadly monster, nay, a debilitating scourge of monumental proportion. It is a raging silent war which is not fought with guns and bombs. It is the insidious act of economic sabotage of crude oil theft that has become so rampant across the Niger Delta region; a crime that has plagued the nation for decades. The NNPCL, Nigeria’s national oil company, has shown itself as a force to be reckoned with and stands at the forefront of efforts to combat this economic scourge, recognizing that crude oil theft not only robs the federal government of vital revenue but also undermines the very fabric of local communities and the nation’s economy.

Crude oil theft, without doubt, has reached an alarming proportion, with estimates suggesting that the country loses billions of dollars annually to this illicit trade. The ramifications are profound: diminished national revenue, environmental degradation, and a loss of trust between oil companies and local communities.

In response, NNPCL has embarked on a multi-faceted strategy aimed at preventing for acts of crude theft, safeguard crude oil installations and facilities, and arrest, expose and prosecute all those engaged in this economic crime according to extant laws of the land.

At the core of NNPCL’s strategy is the implementation of advanced technology to monitor oil pipelines and facilities. The company has invested heavily in surveillance systems, including satellite imagery and drone technology, to detect unauthorized activities along its pipelines. These technological advancements allow for real-time monitoring, enabling swift responses to any suspicious activities. By leveraging data analytics, NNPCL can identify patterns of theft and deploy resources more effectively, ensuring that security personnel are positioned where they are needed most.

Moreover, NNPCL has strengthened its collaboration with law enforcement agencies to enhance the enforcement of anti-theft laws. This partnership has led to the establishment of specialized task forces dedicated to combating oil theft. These task forces conduct regular patrols and raids on suspected illegal bunkering sites, dismantling operations that threaten the integrity of the oil supply chain. The results have been promising, with numerous arrests made and significant quantities of stolen crude oil recovered and illegal refineries destroyed. However, NNPCL recognizes that enforcement alone is not enough; a comprehensive approach that includes community engagement is essential.

Local communities play a pivotal role in the fight against crude oil theft. As the custodians of the land where oil facilities are located, they have a unique vantage point to observe illicit activities. NNPCL has initiated community awareness programs aimed at educating residents about the negative impacts of oil theft. These programs emphasize that while the allure of quick financial gain from theft may be tempting, the long-term  consequences—environmental degradation, loss of livelihoods, and increased violence—far outweigh any short-term benefits.

Furthermore, NNPCL is committed to fostering economic development in these communities as a means of reducing the temptation to engage in oil theft. By investing in local infrastructure, education, and healthcare, the company aims to create sustainable livelihoods that diminish the reliance on illegal activities. Initiatives such as vocational training programs and microfinance schemes empower community members to pursue legitimate economic opportunities, thereby fostering a sense of ownership and responsibility towards their environment.

In addition to community engagement, NNPCL has also taken steps to enhance transparency in its operations. By publishing regular reports on oil production, revenue generation, and the impact of oil theft, the company aims to build trust with both the government and local communities. Transparency not only holds NNPCL accountable but also encourages community members to report suspicious activities, knowing that their voices will be heard and valued.

At an event early in the week in Abuja, the NNPCL graphically relived the battle it has fought to attain the current 1.7 million barrels per day production. It said the fight against oil thieves was yielding results.

Deputy Manager in charge of Command and Control Center, Upstream Investment Management Services (NUIMS), Murtala Mohammed, revealed that the company uncovered 12 illegal refineries in just one week.

In a presentation titled: “An insight into NNPCL’s war against crude oil theft,” Mohammed said the company arrested 2,849 suspects and confiscated 1,467 trucks laden with stolen crude, he stated at the NNPCL workshop/engagement session with selected Kannywood artists in Abuja.

The NNPCL top official said those involved in the sharp practices refine the stolen crude locally and export some. He said the company has repaired 3,100 vandalised pipelines.

In his own contribution, NNPCL spokesman Olufemi Soneye urged the country to protect the national oil company because it belongs to all the citizens. Stressing the need to protect the assets, Soneye explained that should the NNPCL default in remitting funds to the consolidated fund next month, there will be no money to share with the federating units by the Federation Account Allocation Committee (FAAC). He added that there will be no dollar remittance to the Central Bank of Nigeria (CBN) for spending. He insisted that it is for this reason that the NNPCL cannot but protect the facilities.

“Together, let’s protect what belongs to all. NNPCL infrastructure belongs to all of us as Nigerians. Whatever affects NNPCL affects Nigerians. You can imagine if NNPC does not transfer money to the consolidated fund monthly. Governors will not have money to pay salaries.

“Even in terms of foreign exchange, if we don’t pay dollars into the CBN, Nigeria will not have dollars to spend. So, we cannot allow this critical company to die.”

He stressed that “NNPC Ltd is at the heart of Nigeria’s energy security, standing as one of the major contributors to the national grid. Our commitment to power generation is evident in our investments in key facilities. Currently, we operate the Maiduguri Emergency Power Plant, a wholly owned facility providing essential electricity to the region. “This is why we need your voices to amplify this message: ‘Safeguarding our national assets is safeguarding our future!’,” he stated.  

He expressed gratitude to President Bola Ahmed Tinubu, the NNPCL Group Chief Executive Officer Mele Kyari, and Chief of Defence Staff (CDS) Lt.-Gen. Christopher Musa for the support for the battle against vandalism.He said: “Under the leadership of the Group Chief Executive Officer (GCEO), Mele Kyari, the NNPC Ltd management team has implemented strategic actions that have significantly enhanced the security of our national assets, delivering unprecedented results never before seen in the sector. These achievements have been made possible through the visionary leadership and unwavering support of President Tinubu. We also extend our deep appreciation to the Chief of Defence Staff, the military, and all law enforcement agencies for their dedication and commitment to safeguarding our nation’s critical infrastructure.”

The fight against crude oil theft is not without its challenges. The entrenched networks of thieves, often supported by corrupt practices, pose significant obstacles to NNPCL’s efforts. However, the company remains undeterred, recognizing that a united front is essential. This unity must extend beyond NNPCL and law enforcement to include local communities, civil society organizations, and the federal government. A collaborative approach that prioritizes dialogue and mutual respect is crucial for dismantling the criminal networks that thrive on oil theft.

• .Igeniwari, a Petroluem Engineer, writes from Port Harcourt, Rivers State