NNPC’s Partnership With Private Security Outfit Yielding Results As Crude Oil Production Rises By 300,000BPD

….Oil Production Volume Hits 1.47m Barrels Per Day In November

The security agreement which the Nigerian National Petroleum Company Ltd entered with Tantita Security Services Ltd is already yielding results as the country has started experiencing increase in crude oil and gas production volumes.

The NNPC had on August 13 this year contracted Tantita Security Services for pipeline surveillance services.

Before the contract was awarded, the Group Chief Executive Officer of the Nigerian National Petroleum Company Ltd, Mele Kyari and the Minister of State Petroleum, Timipre Sylva had alerted that over 700,000 barrels of Nigerian oil were stolen on daily basis.

About 90 per cent of foreign exchange from exports in Nigeria comes from crude oil sales, which has been frustrated by oil thieves.

The ripple effect of this crude oil theft is huge pressure on foreign exchange reserves and dollar shortage which had led to naira decline.

The security contract had become imperative because Nigeria also depends on crude oil and gas proceeds to fund a large chunk of the federal government budget.

But a document obtained by THE WHISTLER on Sunday showed that cumulatively, Nigeria’s national oil production has recovered from an all-time low of 1.1 million barrels per day in August 2022 prior to signing the contracts to
an average of over 1.47 million BPD in November.

This translates into an increase of over 300,000 BPD.

Similarly, findings further revealed that oil production volume has continue to record significant improvement as more Wells
and associated surface facilities that were hitherto shut-down because of incessant theft and vandalism are being reopened.

Specifically, narrowing down on the Joint Venture assets, mainly onshore which were mostly affected by the security challenges, the NNPC had witnessed a slump in production from a monthly
average of 800,00 BPD in January 2022 to about 500,000 BPD in August 2022.

But following the mobilization of the Production Sharing Contracts, the country has recorded JV oil average production increase of
about 190,000 BPD between August to November 2022.

A breakdown of the JV production increase showed that as of August this year, the average oil production volume was put at 502,759 barrels per day, which is the lowest this year.

According to the document, with the signing of the security contract on August 13, this year, the production volume rose to 521,834 BPD in September before increasing further to an average of 590,431 BPD and 668,147 BPD in October and November.

Findings further revealed that similar impact is being recorded on gas production since the signing of the agreement.

Specifically, before the agreement was reached, the outage of major
trunklines had severely impacted gas production and evacuation, thereby depriving Gas Power Plants and Gas Based Industries feedstock for operations.

However, over the last four months, the NNPC Ltd has recorded an average daily gas production volume recovery of about 500 million standard cubic feet

This has increased volumes available for export through the Nigeria Liquified Natural Gas by over 230MMSCFD,
and additional volume of about 205 MMSCFD for power generation amongst
other domestic uses.

Working in partnership with Tantita Security Services Ltd, the NNPC Ltd, had been recording major breakthroughs in it’s fight against crude oil thieves, with the discovery of several illegal pipelines used in stealing crude oil from Nigeria.

As of November 9, THE WHISTLER had reported that the security outfit had discovered over 58 illegal connections to the trans-Escravos, trans-Forcados, and other major trunk lines by oil bunkers in Delta and Bayelsa states.

The NNPC Ltd Group Chief Executive Officer, Mallam Mele Kyari had while speaking during a summit organised by the Petroleum and Natural Gas Senior Staff Association of Nigeria said that through the support provided by the federal government, the country is making huge success in the fight against crude oil thieves and pipeline vandals.

He said the activities of vandals, if left unchecked, would destroy the oil and gas industry and ultimately frustrate the NNPC’s mandate of guaranteeing energy security for Nigerians.

He said, “The government security agencies in partnership with NNPC and other companies are on the table today because if we don’t arrest pipeline vandalism, we will have no industry.

“And more than anything else, it will completely question any possibility of energy security for our country. For NNPC, we are by law required to be the guarantor of energy security for this country. This is very broad, very tough and very demanding. It means that we must supply energy to this country in all it’s forms.

“And until we arrest the current situation of theft and vandals action, it’s very difficult to take the next step. I am glad to share with you today that monumental progress have been achieved and I can tell you that in the next couple of days maximum a week, our pipelines assets will come back on stream.

“This will no doubt provide the resources that we need to go back to work to reinvest and also provide resources for our country so that other infrastructure development in our country can be delivered.”

Kyari called for the support of all stakeholders in the oil and gas industry to stop the issue of crude oil theft and pipeline vandalism.

For those involved in this criminality, the NNPC Boss said that no one arrested will go unpunished.

Kyari added, “This is clearly an area that requires all of us. And whoever, anywhere, whether in NNPC, regulators, security agencies or wherever you are and whoever you are working for, as long as we know such people, please report at the portal because it is the enemy of all of us.

“Many of the connections that you have seen could not have been delivered except with the involvements of professional, it’s not possible. They are in our midst, the ones we know, we must put them on the table and that is what we are doing. We will spare no one in this action so that ultimately we can get back our assets.

“I am happy with the support we are getting from government security agencies and it is working. Also the involvements of private security is working and it has helped us.

“Many of the discoveries we made today could not have been possible without local knowledge and supporting the people who have been used to do so much and are used by criminals to do some of these things with very little things that they give them. Now, they are involved in protecting these assets and we are proud of these interventions.”

ENDS