Dwindling Oil Production: NNPCL Vows to Track Down Pipeline Vandals, Declares War On Crude Oil Theft

The New Diplomat
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By Afolabi Samuel Odunayo

In an effort to improve on crude oil output in Nigeria, the Nigerian National Petroleum Company Limited (NNPCL) has announced a state of emergency on oil production

This was announced by NNPCL Group Chief Executive Officer, (GCEO) Mr Mele Kyari, in a keynote speech he delivered on Tuesday at the start of the 23rd Nigerian Oil and Gas Conference and Exhibition Week in Abuja.

Kyari stated: “We have decided to stop the debate. We have declared war on the challenges affecting our crude oil production. War means war. We have the right tools. We know what to fight. We know what we have to do at the level of assets. We have engaged our partners. And we will work together to improve the situation.”

In his keynote speech, the NNPCL Chief maintained that Nigeria could easily produce two million barrels of crude oil per day without deploying additional rigs. However, Mr Kyari lamented that the main obstacle to accomplishing this projected feat is the players’ incapacity to respond promptly.

He went on to say that the “war” will assist NNPCL and its partners in swiftly removing any barriers to productive production that have been discovered, especially inefficiencies in the industry-wide procurement processes.

It would be recalled that a research study released by PUNCH newspaper recently revealed that Nigeria’s monthly oil output has consistently been on the decline since January 2024, a development that has cost Nigeria almost N636.3 billion in lost income.

According to figures on oil production obtained from a Federal Government agency, Nigeria produced 1.43 million barrels of crude oil (excluding condensates) in January of this year, but by May, that amount had dropped to just 1.25 million barrels per day.

Crude oil theft and persistent pipeline vandalism had been reported to have been some of the major causes of ongoing decline in Nigeria’s oil production.

Interestingly. at the National Judges Capacity Building Workshop on the Petroleum Industry Act 2021, which was conducted in Abuja by the National Judicial Institute and INVESTIN 234, Kyari had alluded to the above assertions. Consequently, Kyari called on the courts to expedite trials for crimes involving pipeline vandalization and crude oil theft.

A statement released, on behalf of Kyari, at the time by NNPCL spokesperson Olufemi Soneye was quite clear on the above submission.

According to the statement, the NNPCL CEO suggested that in order for the oil and gas sector to realise its full potential as a catalyst for the development of the country’s industrial and economic sectors, the court must engage in the fight against pipeline destruction and crude oil theft.

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