NNPC seeks EFCC support to fight crude oil theft

The Nigerian National Petroleum Company Limited (NNPC Ltd) has appealed to the Economic and Financial Crimes Commission (EFCC) to help tackle the menace of crude oil theft in the country.

Olufemi Soneye, the chief corporate communications officer of NNPC Ltd, disclosed this in a statement on Monday.

Mr Soneye said the Group Chief Executive Officer of the company, Mele Kyari, made the appeal at an interactive session with the Executive Chairman of EFCC, Ola Olukoyede, held at the NNPC Towers in Abuja on Monday.

Speaking about the efforts by NNPC Ltd to eradicate corruption from its system and stem crude oil theft and pipeline vandalism, Mr Kyari contended that going by the volume of oil stolen daily and the brazenness with which the perpetrators operate, crude oil theft was the most humongous and virulent economic crime in Nigeria that must attract the attention of the EFCC.

“As we continue to do our best to deepen transparency and stamp out corruption from the system, there is one big challenge that you will need to help us with, Mr Chairman. That challenge is crude theft. It fits into everything you have said: the people, the asset, the opportunity, and the absence of deterrence.

“We have deactivated 6,409 illegal refineries in the Niger Delta region. Today, we have disconnected up to 4,846 illegal pipes connected to our pipelines, that is out of 5,543 such illegal connection points. That means there are a vast number of such connections that we have not removed,” Mr Kyari said.

He said these things don’t just happen from the blues.

“They happen in communities and locations we all know. As we remove one illegal connection, another one comes up. It is sad, Mr Chairman. This kind of thing does not happen anywhere else in the world. When we say illegal connections, they are not invisible things, they are big pipes that require some level of expertise to be installed.

“Some of them are of the same size as the trunk line itself. No one would produce crude oil knowing fully well that it is not going to get to the terminal. That is why nobody is putting money into the business. So, you can’t grow production.”

“I believe, personally, that the very purpose of your commission is to curtail economic crimes, and there is no bigger economic crime of this scale anywhere else than what is happening in this area,” he added.

On corruption within the system, Mr Kyari explained that by law, NNPC Ltd is required to maintain high ethical standards and has put in place structures and measures to curb discretionary actions which fuel corruption.

He added that most processes in the company have been fully automated to discourage arbitrary actions and many issues of corruption reported to the public were either not true or recycled from the past.

In his presentation, according to the statement, Mr Olukoyede expressed satisfaction with NNPC Ltd’s commitment to issues of ethics and code of conduct.

He, however, challenged management to ensure that the codes of ethics and regulations are complemented with monitoring and enforcement to enhance deterrence.

In recent years, Nigeria has recorded a surge in pipeline vandalism and crude oil theft incidents in its oil-producing region, a development that worsened the nation’s revenue challenge.

To curb crude theft, the NNPC Ltd launched an application in August 2022 to monitor the incidence of theft and vandalism. The NNPC Ltd also awarded a multibillion naira pipeline surveillance and procurement to a former leader of the Movement for the Emancipation of Niger Delta, Government Ekpemupolo.

Despite such initiatives, Nigeria continues to experience significant oil losses to vandals, prompting several international oil companies to shift from the onshore sector to offshore.

The Nigerian National Petroleum Company Limited (NNPC Ltd) has appealed to the Economic and Financial Crimes Commission (EFCC) to help tackle the menace of crude oil theft in the country.

Olufemi Soneye, the chief corporate communications officer of NNPC Ltd, disclosed this in a statement on Monday.

Mr Soneye said the Group Chief Executive Officer of the company, Mele Kyari, made the appeal at an interactive session with the Executive Chairman of EFCC, Ola Olukoyede, held at the NNPC Towers in Abuja on Monday.

Speaking about the efforts by NNPC Ltd to eradicate corruption from its system and stem crude oil theft and pipeline vandalism, Mr Kyari contended that going by the volume of oil stolen daily and the brazenness with which the perpetrators operate, crude oil theft was the most humongous and virulent economic crime in Nigeria that must attract the attention of the EFCC.

“As we continue to do our best to deepen transparency and stamp out corruption from the system, there is one big challenge that you will need to help us with, Mr Chairman. That challenge is crude theft. It fits into everything you have said: the people, the asset, the opportunity, and the absence of deterrence.

“We have deactivated 6,409 illegal refineries in the Niger Delta region. Today, we have disconnected up to 4,846 illegal pipes connected to our pipelines, that is out of 5,543 such illegal connection points. That means there are a vast number of such connections that we have not removed,” Mr Kyari said.

He said these things don’t just happen from the blues.

“They happen in communities and locations we all know. As we remove one illegal connection, another one comes up. It is sad, Mr Chairman. This kind of thing does not happen anywhere else in the world. When we say illegal connections, they are not invisible things, they are big pipes that require some level of expertise to be installed.

“Some of them are of the same size as the trunk line itself. No one would produce crude oil knowing fully well that it is not going to get to the terminal. That is why nobody is putting money into the business. So, you can’t grow production.”

“I believe, personally, that the very purpose of your commission is to curtail economic crimes, and there is no bigger economic crime of this scale anywhere else than what is happening in this area,” he added.

On corruption within the system, Mr Kyari explained that by law, NNPC Ltd is required to maintain high ethical standards and has put in place structures and measures to curb discretionary actions which fuel corruption.

He added that most processes in the company have been fully automated to discourage arbitrary actions and many issues of corruption reported to the public were either not true or recycled from the past.

In his presentation, according to the statement, Mr Olukoyede expressed satisfaction with NNPC Ltd’s commitment to issues of ethics and code of conduct.

He, however, challenged management to ensure that the codes of ethics and regulations are complemented with monitoring and enforcement to enhance deterrence.

In recent years, Nigeria has recorded a surge in pipeline vandalism and crude oil theft incidents in its oil-producing region, a development that worsened the nation’s revenue challenge.

To curb crude theft, the NNPC Ltd launched an application in August 2022 to monitor the incidence of theft and vandalism. The NNPC Ltd also awarded a multibillion naira pipeline surveillance and procurement to a former leader of the Movement for the Emancipation of Niger Delta, Government Ekpemupolo.

Despite such initiatives, Nigeria continues to experience significant oil losses to vandals, prompting several international oil companies to shift from the onshore sector to offshore.