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Pipeline Vandalism: Nigeria records 34,042 cases in 14 years

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‎From the first recorded case of pipeline vandalism and rupture in 1999 within Nigeria, there have been 34, 042 cases in five major states in the country from inception case date to 2013. 
 
‎The major five states where vandals carry out their nefarious operations often refer to as ‘Hot Spots’ includes Gombe, Kaduna, Mosimi, Port Harcourt and Warri in Delta states. 
 
According to facts and figures released by Pipelines and Product Marketing Company, PPMC‎ 2010 had the highest recorded cases of 5,518 pipeline vandals activities. 
 
2011, 2012 and 2013 witness a declined of pipeline vandalism cases with 4,468, 3,708 and 3,571 respectively. 
 
Managing Director of PPMC, Haruna Momoh who stated this fact at the 2014 National Association of Energy Correspondent annual conference in Lagos said activities of pipeline vandals in the country have led to the loss of 712, 776 metric tons cubic meters (M3) of Premium Motor Spirit, PMS also known as petrol in the last four years. 
 
Within the same year he said the country lost 1,310,139 metric tons cubic meters of crude oil, 9,548M3 of Dual Purpose Kerosene‎, DPK and 37,054M3 of Automated Gas Oil, AGO also known as diesel. 
 
The PPMC MD who was represented by Frank Amego of PPMC also stated that these activities ‎of economic saboteurs has led to the disruption of crude oil supply from Escravos to Warri and Port Harcourt refineries through pipelines.  
 
‎Momoh further explain that the federal government has been forced to use marine vessels for crude oil deliveries to refineries as a result of pipeline vandals activities. 
 
Other negative effect caused by‎ pipeline vandals according to the PPMC is the deterioration of refinery system as a result of idle time, loss of revenue to the government and the whole nation, product supply challenges due to refinery shutdowns, scarcity, and loss of lives and material resources from pipeline fire. 
 
Environmentally, the PPMC boss also stated that there has been damage to water aquifer, loss of arable lands through pollution, pollution of streams and rivers and the reduction of pipeline life span, all as a result of pipeline vandals operations. 
 
‎He noted that efforts has been made to manage and curtail the activities of pipeline vandals. 
 
Those efforts according to him include the manning of pipeline network with community guards, vigilante groups, Nigeria Police, Nigeria army, JTF and special task forces which have yielded positive results. 
 
Others includes involvement of agencies on the security of the pipelines such as Civil Defense Corps, AIG task force, DPO team, SSS, military, services of Operation Pulo Shield in the Niger Delta and the use of Messer Sappers Engr. Ltd to grade the pipelines right of ways. 
 
He reiterated that the Federal Government needs to develop a national plan for critical infrastructure and key resources protection similar to the United States National Infrastructure Protection Plan to secure the nation’s pipelines. 
 
“The United State Government recognizing the criticality ‎of pipelines to national security, treat them as national strategic assets. 
 
“The Department of Homeland Security leads other agencies to oversee and provide for pipeline security. 
 
“The Federal Government should likewise declare the pipelines as strategic national assets and set up a special force to protect them,” he said. 
 
He however lamented some constrains in the legal and regulatory frame work in enforcing punishment against pipeline vandals. 
 
“Under the Nigerian Legal system, the police, upon arrest of suspects are only empowered to commence criminal proceedings at the magistrate courts. 
 
“The law against pipeline vandalism specify prosecution at the Federal High Court. This has created difficult situation for prosecution to proceed diligently. 
 
“There is a need to amend the laws to allow speed prosecution of suspect. 
 
“PPMC cannot privately pursue the prosecution of criminal matter without obtaining of FIAT from the office of the Attorney General of the Federation
 
‎”The Oil Pipeline Act, Cap 338 of 1990 and the oil pipeline regulation which are made pursuant to the act does not establish sanction for the violation of pipelines or disruption of the distribution of crude oil or refined petroleum products. 
 
“However, the Miscellaneous Offences Act 1984 section 1 (7) provides that any person who wilfully or maliciously breaks, damages, disconnect, tamper with, obstructs, destroys pipelines or interfere with the free flow ‎of crude oil or refined products through pipelines, shall be guilty of an offence and liable upon conviction to imprisonment for life. 
 
“However, the offences under this ACT can only be prosecuted at the Federal High Court,” he said. 
 
‎In other to find a way out of the legal constrain, Momoh said existing sanctions should be enforced adding that the National Assembly should harmonise the oil pipeline ACT to conform to Miscellaneous ACT as well as Petroleum Act in order to engender growth in the downstream sector. 
 
He reiterated that ‎pipeline remains the fastest, cheapest and most environmental friendly way to distribute petroleum products.  
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Oil

FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry

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In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.

The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.

The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.

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These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.

The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.

This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.

These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.

The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.

 

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Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative

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By Yemie Adeoye

NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.

The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.

“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”

The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.

“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.

Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.

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Oil

ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations

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As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.

Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”

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This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.

Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.

We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.

“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.

On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.

 

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