By Chris Uba

Pipeline vandalism remains an intractable challenge to the Nigerian oil and gas-dependent economy. From Escravos to Warri and from Lagos to Abuja, the nation’s pipeline network, running into thousands of kilometres, is constantly under the threat of vandals.

Only recently, the main crude line from Makaraba through Otunana and Abiteye to Escravos, as well as the Olero to Escravos gas lines were attacked. Coming at a time when global crude oil price is still on its downward spiral, these acts of sabotage spell doom for Nigeria’s already troubled economy.

In a statement made available to the media, Governor Ifeanyi Okowa of Delta State condemned the attacks, expressing disappointment that these attacks were coming on the heels of a stakeholders’ summit against vandalism recently organised by his administration.

“These attacks should be condemned by all well-meaning Nigerians, particularly compatriots from Niger Delta. This is an attack on our soul. The state is bleeding again and its implication for the economy and image of Delta State is grave”, he said.

The governor recalled the stakeholders’ summit on the effects of the vandalism of oil and gas facilities in the state, where the various arms of the security agencies, the oil and gas operators and the host communities converged to brainstorm on measures to stem the activities of vandals. He noted that the attacks, coming just few days after the summit, was not a good way of reciprocating the good intentions of his government and the enormous resources that are being invested in turning around the fortunes of the state.

He called on community leaders and youth groups to resist any temptation to be drawn into these nefarious activities as this might jeopardize the on-going intervention of Federal Government, in the lives of the youths, through the Amnesty Office.

“Do not be part of this crime and refuse to listen to any leader or politician who would want to pitch one ethnic nationality against the other as a result of these incidents. The destruction of oil facilities is purely criminal and we reject attempts to label it otherwise,” the governor counselled.

In Nigeria, petroleum and associated products are mainly transported through an extensive network of pipelines that run across different parts of the country, from remote to populated areas. Because these pipelines are poorly secured, they have become targets of repetitive attacks by vandals, who wilfully or deliberately damage petroleum pipelines with the sole aim of stealing crude oil and associated petroleum products.

The effects of this crime include, among others, huge economic losses from pipeline and plant shutdown, environmental pollution, fire outbreaks usually resulting in loss of lives. Scarcity and shortage of petroleum products as well as decrease in electricity supply.

Thousands of people, including suspected vandals, have been roasted to death along the Nigerian National Petroleum Corporation (NNPC) pipelines in various parts of the country. One of the most deadly of those blasts occurred on October 18, 1998, when an NNPC pipeline exploded in Jesse. Reports said the explosion was caused by thieves trying to break open the pipeline in order to siphon off oil. The blast created a fire that killed hundreds within hours, destroying surrounding farmlands and villages.  Till date, the affected communities are yet to recover from the scars of that incident.

The truth is that many of us live in blissful ignorance of pipeline vandalism and its many negative impacts. But here are a few facts about this nefarious and unpatriotic but booming business.

Pipeline vandalism is one major reason why the refineries will not work. Finished products pumped from the refineries leak through compromised pipelines into the waiting vessels of pipeline vandals, a thriving business, which cost the country over N150.5 billion annually.

The NNPC recently provided graphic details of how the activities of pipeline vandals have complicated the free flow of petroleum products and crude supply in its pipeline system leading to a colossal cost of over N174.57 billion in product losses and repairs of products pipelines within the last 10 or 15 years.

According to the corporation, the combined working capacity of all the 21 Pipelines and Product Marketing Company (PPMC) depots nationwide, excluding holding capacities at the refineries, can provide products sufficiency of up to 32 days for petrol, 65 days for kerosene and 42 days for diesel, but regrettably, the activities of the pipeline vandals have made it impossible for the facilities to function, full blast.

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The data provided by the company also showed that a total of 16,083 pipeline breaks were recorded within the last 12 years.

While 398 pipeline breaks representing 2.4 per cent were due to ruptures, the activities of unpatriotic vandals accounted for 15,685 breaks thus translating to about 97.5 percent of the total number of cases.

Records show that the System 2E/2EX, which conveys products from the Port Harcourt refinery to Aba-Enugu-Makurdi depots onwards to Yola-Enugu-Auchi, appears to be the haven of pipeline vandalism in the country particularly the Port Harcourt-Aba/Isiala-Ngwa axis.

Similarly, System 2A product pipeline route, which conveys products from Warri-Benin-Suleja/Ore depots ranks second on the scale of pipeline break points with 3,259 cases representing about 20.2 percent of the total volume of products pipeline breaks in Nigeria.

The figure also came with a loss of over N20.39 billion in products and pipeline repairs, while System 2B which carries products from the Atlas Cove-Mosimi-Satelite-Ibadan-Ilorin depots recorded 2,440 breaks leading to a loss of over N73.6 billion in products and pipeline repairs.

On gas, NNPC said that the incessant attack on the Trans Forcados Pipeline (TFP) has rendered it out of service since May 2009 thus making it impossible to evacuate crude oil/ condensate from some Shell operated facilities. Currently over 300,000 bpd and 140mscfd is deferred and about 55 vandalized points so far repaired at a cost of N11 billion.

Uba writes from Lagos.

The personnel cost of pipeline vandalism is no less grim. NNPC and PPMC have lost personnel, including engineers, while trying to repair pipelines damaged by the vandals. This nefarious act is the reason petroleum tankers come to Lagos to ferry fuel from the Atlas Cove to upcountry consumers, causing major traffic challenge in the city.

Pipeline vandalism is also one major reason for the sustenance of the fuel subsidy regime. Curbing pipeline vandalism is very essential in resuscitating the nation’s ailing refineries by ensuring ease of petroleum products  transportation to local depots, eliminating importation and crashing fuel prices.

According to NNPC, Nigeria loses about 150,000 barrels of crude oil to pipeline vandalism every day. At the current oil prices, this translates to about $6.5 million daily.

To address this problem, government must begin to explore more creative ways of managing its extensive network of pipelines. It is evident that the security of the pipelines cannot be achieved by the use of threat or the use of force. This strategy has proven itself ineffectual over the years. A viable alternative, therefore, is the integration of indigenous oil and gas companies, with the requisite capacity, into the pipeline management system.

Uba writes from Lagos.

From experience, the international oil companies (IOCs), which have dominated the industry for a long while, do not understand the local terrains, with their attendant social, economic and cultural matrix,the way their indigenous counterparts do. For instance, Seplat Petroleum Development Company, a leading independent oil and natural gas producer in Nigeria, produces from five fields in Amukpe, Oben, Okporhuru, Ovhor, and Sapele, and manages about 210 kilometres of pipeline network that feeds into the Trans Forcados pipeline system. But while Seplat has established an unbroken record of zero vandalism on its pipelines, the Trans Forcados pipeline system remains under ceaseless attacks and is currently out of commission. Obviously, there must be something Seplat is doing right.

Since he assumed duties last year, the Minister of State for Petroleum, Dr. Ibe Kachikwu, has been working to address the key issue of vandalism, which is closely associated with the issues of petroleum products scarcity. He believes vandalization of oil pipelines largely accounts for this, hence, has been exploring ways to forge enduring relationships with the local communities, especially those in the oilbearing states. Encouragement of participation of indigenous companies in this process, is, therefore, a key part of his reform agenda.

Uba writes from Lagos.