Nigeria’s state oil firm, NNPC Limited, said pipeline theft has been almost eliminated in the country after coordinated security operations and crackdown on culprits.
The company’s Group Chief Executive Officer, Bayo Ojulari, stated that receipts from pipelines and export terminals are now close to 100%, compared to past years when theft drained most of the supply.
Speaking at a regional security forum in Abuja on Monday, Ojulari said the progress was achieved through collaboration with defence and intelligence agencies.
He explained that three years ago, only about 30% of crude sent through certain pipelines reached Nigeria’s export terminals.
“This trend was a major source of revenue loss for the Government and discouraged fresh investment. Today, I can proudly report that our pipeline and terminal receipts are attaining close to 100%,” Ojulari said.
The NNPC chief noted that theft had become more sophisticated than local sabotage, involving international networks operating across West Africa.
He said that closer coordination among national security forces had reduced the ability of such groups to operate freely, particularly in the Niger Delta where most oil pipelines are located.
NNPC outlook on oil production
Nigeria’s oil sector is central to its economy, but years of vandalism and theft have sharply reduced output.
In 2005, production peaked close to 2.5 million barrels per day (bpd), before militancy and theft cut volumes to nearly 1 million bpd by 2016.
Ojulari said the improved security now gives confidence that production can rise again.
The Nigerian Upstream Petroleum Regulatory Commission projected last week that output could surpass 2.5 million bpd next year if planned projects receive approval.
Security of infrastructure has been a long term challenge.
In 2021, Nigeria contracted private security firms to work alongside Government forces in monitoring vulnerable pipelines.
Ojulari stated that the current results show the approach is working, and NNPC would continue to partner with security agencies to sustain progress.
Pipeline theft has been one of the biggest threats to Nigeria’s revenue.
Billions of Dollars have been lost annually as crude meant for export was siphoned off before reaching terminals.
By cutting down losses, the government expects to improve earnings and restore investor confidence in the oil and gas sector.
Ojulari added that steady receipts from pipelines will help the country meet export targets and support domestic energy needs.
