13 July 2014

Nigeria: PPMC Loses N376 Billion to Product Thieves in Five Years

The Managing Director, Pipeline and Products Marketing Company (PPMC), Haruna Momoh, has disclosed that the company has lost N376billion in the past five years to petroleum products pipelines vandals.

Momoh who spoke in Uyo, Akwa Ibom at the capacity building training for newsmen explained that the company recorded more breaks on its pipeline system within the periods of 2008 to 2013 when such losses were incurred.

The PPMC boss who was represented by an official of the company, Francis Amego noted that from about 497 break points recorded on the various sections of its pipeline in 2009, the company had within the period witnessed a steady rise in the number breaks on its pipeline.

While adding that between 2008 and 2013, the PPMC had recorded 3,591 break points on its pipeline system, he urged that such acts of pipeline vandalism should now be considered as security risks and economic sabotage.

He, however, noted that the threat requires increased proactive measures to combat irrespective of extant measures that have been initiated by the government, adding that the country should strive to avoid adopting the option of electronic surveillance mechanism on the pipelines which is considered a futuristic and expensive approach.

Earlier, the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Andrew Yakubu said, following incessant attacks on pipelines supplying crude to Warri and Port Harcourt refineries, the Nigerian National Petroleum Corporation (NNPC) has disclosed that it is now using marine transport to bring crude to the refineries.

He said, that has become almost impossible for "you to pump a barrel of crude in Escravos and get anything in Warri Refinery".

About 400,000 barrels of oil per day, equating to a revenue loss of about $1.7 billion a month and $20.4 billion annually,are estimated to be lost to oil thieves in the petroleum sector.

Yakubu who explained that the capacity utilisation of the refineries is at 60 per cent of name plate, noted that the refineries could operate better with regular supply of crude through the pipelines.

According to him, "Capacity utilisation of the refineries is 60 per cent of name plate, the 60 per cent of the name plate capacity is not because the plants cannot take more but because we have challenges of crude supply, so we have to go through marine.


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