Edo state governor, Godwin Obaseki, on Thursday said the Nigerian National Petroleum Corporation (NNPC) reported that the 22.6 million barrels of crude oil valued at approximately $1.35 billion was lost during the first half of this year.
Obaseki disclosed this while speaking with journalists after the National Economic Council (NEC) meeting on the report of a 13-member adhoc-committee he chaired to address the impact of vandalization, oil theft, and illegal bunkering on oil production.
“The adhoc committee discovered that there were huge losses. In fact, the NNPC reported to the committee that the 22.6 million barrels of crude oil valued at approximately $1.35 billion was lost during the first half of this year. And if this situation is not contained in two years, we would have lost in excess of $2.7 billion.
OVER 5,000 NIGERIAN MEN HAVE OVERCOME POOR BEDROOM PERFORMANCE SYNDROME DUE TO THIS BRILLIANT DISCOVERY
The losses that were recorded in the first half of the year were broken down as follows:
“The Nembe creek trunk-line lost 9.2 million barrel, the Trans-Niger pipeline lost 8.6 million barrel, the Trans-Focadoes Pipeline lost 3.9 million barrel, Trans-Escravos pipeline, we lost 877,000 barrel,” he said on his report to the NEC.
He said the adhoc-committee reported that the governance structure of the pipeline was in a situation whereby no one was held accountable whenever there were breaches and when such losses occurred.
Obaseki said his committee also discovered that the slow and inadequate prosecution of thieves despite numerous arrests and seizures had continued to encourage the menace.
He said the absence of petroleum products in filling stations in most of the oil producing communities around the Niger Delta made them resort to illegal bunkering and illegal refineries.
The Edo governor said the committee recommended among others that there should be special courts to try offenders and also have a special legal task force to coordinate the prosecution of arrested offenders as well as trained special judges to handle cases of oil theft.
He said the committee also advised that NNPC should be encouraged to engage with the National Intelligence Agency (NIA) to identify the markets for stolen petroleum products across the continent.
The governors of the oil producing states, he added, were tasked to set up actions to develop the communities that were most prone and implement programmes that would make life easier for the people.
The adhoc committee also made the recommendations:
“That there is need to restructure the maintenance and ownership of oil pipelines as a way of tackling the perpetrators of crude and other products.
“That they should emphasis creating employment opportunities for young people and youths in the region.
“That the proposed funding arrangement to be jointly funded by the federal, states and the oil companies to ensure the communities through which these pipeline traverse get some benefits to encourage them to protect these lines.”
The council, however, resolved “that recommendations should be presented to the president who is also the minister of petroleum for the final decision for implementation.
“The chairman of council also asked the NNPC to make a presentation to council on the state of PMS and other products which are smuggled across the borders,” he added.