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Crude Oil Theft: NNPC Ltd Solicits EFCC’s Support

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Nigeria is not refining crude locally – NNPC GMD

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.

This was contained in a statement in Abuja by Chief Corporate Communications Officer, NNPC Ltd, Olufemi O. Soneye.

According to him, the Group Chief Executive Officer, NNPC Ltd, Mele Kyari, made the appeal at an interactive session with the EFCC’s helmsman, Ola Olukoyede, at the NNPC Towers in Abuja on Monday.

Speaking passionately about the efforts by NNPC Ltd to eradicate corruption from its system and stem crude oil theft and pipeline vandalism, 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.

He said, “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.

“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.”

On corruption within the system, Kyari explained that by law, NNPC Ltd was required to maintain high ethical standards for which it put in place structures and measures to curb discretionary actions which fuel corruption, stressing that most processes in the company have been fully automated to discourage arbitrary actions.

He disclosed that many issues of corruption reported in the public were either not true or recycled from the past.

In his presentation, the Executive Chairman of EFCC, Ola 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.

It was gathered that the interactive session was at the instance of the GCEO, NNPC Ltd.

Energy

SNEPCo, Former MD Aiboni Win Energy Times’ Awards

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The Shell Nigeria Exploration and Production Company (SNEPCo) has been named Major Oil Company of the Year for last year by a Nigerian publication, Energy Times.

Biztellers reports that this is in recognition of the company’s contributions to deep-water oil and gas development and the industry generally.

Energy Times also awarded the title of Amazon of Nigeria’s Oil Sector for 2024 to Elohor Aiboni, a former Managing Director of SNEPCo now on international assignment in Brunei.

The awards were presented to SNEPCo’s Senior Operations Manager, Bolanle Odunayo-Ojo, who represented the Managing Director, Ronald Adams at a ceremony attended by key stakeholders in the oil and gas sector.

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“We are honored to receive the recognitions for the company and our former Managing Director as they underscore our dedication to excellence in the upstream sector,” Bolanle stated. “The modest achievements are result from teamwork and support by our partners, particularly the Nigerian National Petroleum Company Limited and regulatory agencies. The awards encourage us to continue to work together to power progress and innovation in Nigeria’s energy landscape.”

The SNEPCo has been a pioneer in Nigeria’s deep-water oil and gas production since it began production from Bonga in 2005, Nigeria’s first deep-water well. Gas from Bonga is also piped to Nigeria Liquefied Natural Gas Company Limited at Bonny Island. SNEPCo’s operations have led to significant discoveries, including Bonga Southwest in 2001 and Bonga Northwest, which began production on August 5, 2014.

In its award, the Board of Directors of Energy Times pointed to the continuing success of Bonga, notably production of the 1 billionth barrel of oil in February 2023 and the recent Final Investment Decision on the $5 billion Bonga North project.

The award on Aiboni’s highlights a career that has seen her serve in various business and leadership roles within and outside Nigeria. She was appointed Managing Director of SNEPCo in 2021 and led initiatives that deepened operational efficiency, local content development and social investment projects across the six geopolitical zones in the country.

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Energy

Shell Commends Oloibiri Lecture Series As Platform For Change

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Shell Nigeria Exploration and Production Company Ltd (SNEPCo,) one of the sponsors of the Oloibiri Lecture Series and Energy Forum (OLEF) has commended it as a platform for driving change in Nigeria’s energy sector through the discussions that centre on business performance, cost discipline and process simplification.

“This event is special to the Shell brand, not only because of the nostalgia of Oloibiri but the quality of discourse it has enabled in our sector over the years,” SNEPCO Managing Director Ronald Adams said in a goodwill speech delivered by General Manager, Wells and Geosciences Operations Joe Mordi. He said: “We are grateful to the Society of Petroleum Engineers and our host the Petroleum Technology Development Fund (PTDF) for another successful outing.”

Organised by the Society of Petroleum Engineers (SPE) Nigeria Council, the Oloibiri Lecture Series and Energy Forum began in 1991, in commemoration of the country’s first commercial oil discovery by Shell at Oloibiri, Bayelsa State, in 1956. Ronald said recent developments in the Upstream and Downstream sectors of the energy industry, including the $5-billion final investment decision by Shell in the Bonga North Deepwater project echoed the sentiments around the first oil discovery.

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He noted that, “These strides come with a commitment to excellence required of us – for stakeholders, colleagues, our country and indeed, future generations. The theme for this year ‘Driving energy sustainability through technology, policy and supply chain excellence’ reflects this commitment. The future is bright, and we have the opportunity to co-create it.”

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Energy

NLNG Improves Nigeria’s Domestic LPG Supply Efficiency

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In line with its continuous improvement culture, the Nigeria LNG Limited (NLNG) will be working closely with its stakeholders to improve operational efficiency in its domestic Liquefied Petroleum Gas (DLPG) supply in Nigeria.

According to a statement from its General Manager, External Relations and Sustainable Development, Sophia Horsfall, this was highlighted at an engagement session with stakeholders in Lagos.

It was gathered that the NLNG plans to enhance engagement and improve operational efficiency of its LPG supply through digitalisation of some of its processes which include a new platform designed to streamline regulatory processes, optimise risk management, and enhance the buyer experience. The platform will feature IT-supported relationship management, automated issue resolution, centralised real-time payments, and improved case management systems, ensuring a seamless supply process despite market shifts and external pressures.

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Manager, Commercial Contract Management, NLNG, Tolulope Longe, reiterated that the planned improvements will enable and consolidate NLNG’s resolve to delivering 100% of its LPG supply to the Nigerian market.

She said a strategic roadmap was in play to ensure the achievement of NLNG’s longstanding goals of LPG being accessible and available in the country, aligning with its vision of being a globally competitive energy company, improving lives sustainably. She also harped on the significance of these improvement initiatives and the Company’s push for LPG utilisation as a clean energy source alternative to kerosene and other fossil fuels

Longe noted that the Company remained focused on growth and sustainability of the LPG market by continuously enhancing its supply processes in collaboration with offtakers. She stressed NLNG’s commitment to collaborating with stakeholders to maintain pricing stability and long-term market viability. While acknowledging industry concerns, she noted the importance of operational efficiency in meeting market demands.

NLNG aims to strengthen stakeholder engagement and improve market efficiency in the LPG sector through enhanced customer interactions, minimised schedule disruptions, timely confirmations and deliveries, and prioritisation of customers with demonstrable capacity. As it adapts to market realities, NLNG remains committed to driving sustainability and delivering lasting value to Nigerians.

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