63 illegal refineries uncovered amidst concerns over delay in Port Harcourt refinery operations....CONTINUE READING THE ARTICLE FROM THE SOURCE
National oil company, the Nigerian National Petroleum Company Limited, said it has uncovered and confiscated products from 63 illegal refineries in the past week. A documentary by the company on Wednesday, said in the past week, 19 illegal pipeline connections and 63 illegal refineries were uncovered in the Niger Delta. The company announced the development amidst fresh concerns over the delay in the commencement of operations by the Port Harcourt Refinery as earlier announced.
The Port Harcourt Refining Company, a refinery under the management of the company in Rivers State, had again failed to commence operations after about six postponements. The Federal Ministry of Petroleum Resources and NNPCL had promised to get the refinery up and running this month, however, no sign of the facility kick-starting crude oil refining just yet as the month drags to an end. In July, the Group Chief Executive Officer of the NNPCL, Mele Kyari, stated categorically that the refinery would come into operation in early August. This is after he said in 2019, that the NNPCL would deliver all the country’s four refineries before the end of former president Muhammadu Buhari’s administration. “I can confirm to you, Mr Chairman, that by the end of the year, this country will be a net exporter of petroleum products. “Specific to NNPC refineries, we have spoken to a number of your committees, and it is impossible to have the Kaduna refinery come into operation before December, it will get to December, both Warri and Kaduna, but that of Port Harcourt will commence production early August this year,” Kyari boasted while appearing before the Senate in July. However, the refinery has yet to commence operations as August hits midpoint today, sparking concerns that this might be another failed promise from the national oil company.
NNPCL has yet to comment on the reason for the delay.
However, in a bid to show its efforts at combating crude oil theft and boosting the country’s revenue, the company said 63 illegal refineries have been uncovered.
According to the NNPC, about 177 incidents were recorded between August 3 and 9 by different incident sources, like Tantita Security Services, four; Shell Petroleum Development Company, 11; Pipeline Infrastructure Nigeria Limited, 26; Maton Engineering Company, 20; NNPC 18 Operating Ltd, one; NNPC Command and Control Centre, 51; and government security agencies, 64.
During the week under review, 19 illegal pipeline connections were recovered, while some underwent repairs at different locations in Bayelsa and River States.
The NNPCL stated that 63 illegal refineries were discovered and confiscated in Bayelsa, Rivers, Abia, Imo and Delta States.
It added that a vandalised barricaded oil wellhead was discovered in Bayelsa State and that stolen crude was discovered in oil reservoirs in Rivers State.
According to the state-owned firm, 17 vehicular arrests were made in communities in Delta, Bayelsa, Rivers and Akwa Ibom States.
A total of fifteen wooden boats conveying stolen crude were confiscated in Rivers and Bayelsa States.
The energy company disclosed that 51 of those incidents took place in the deep blue water, 21 in the western region, 29 in the central region, and 76 in the eastern region.
No fewer than 16 suspects were arrested in connection with the incidents in the past week.
The development comes as Nigeria currently battles low crude oil production which has denied the country huge revenue to undertake capital developmental projects across the country.
Nigeria’s crude oil production has hovered around 1.1 million barrels per day and 1.3 million barrels per day in the last few years.
It climbed to 1.3mb/d last in July from 1.2mb/d recorded in June 2024, according to the Organization of the Petroleum Exportation Countries’ Monthly Oil Market Report For August 2024 obtained by Channels Television on Thursday.
Crude oil production of 1.3mb/d is still a far cry from the 1.5mb/d quota for the country by OPEC+ in the ongoing cuts agreement.
Recently, billionaire businessman, Tony Elumelu, said the government and security agents in Nigeria should be able to tell Nigerians those responsible for stealing the country’s crude oil, especially using vessels that move through the territorial waters.
According to him, oil theft had contributed to the divestment of International Oil Companies from Nigeria.
Speaking with the Financial Times, Elumelu mentioned that oil thieves still cart away 18 per cent of crude from his field.
He explained, “42,000 barrels of crude are pumped out daily. Theft still takes away about 18 per cent of production.
“This is oil theft; we are not talking about stealing a bottle of Coke that you can put in your pocket. The government should know; they should tell us.
“Look at America — Donald Trump was shot at and quickly they knew the background of who shot him. Our security agencies should tell us who is stealing our oil. You bring vessels to our territorial waters and we don’t know?”
Elumelu’s concern comes in the wake of a brawl between Aliko Dangote, government officials and IOCs over the supply of crude oil to his Ibeju-Lekki 650, 000 oil refinery facility.
