How stakeholders’ engagement reduces pipeline vandalism

The federal government has announced that its recent peace moves in the Niger Delta and stakeholders’ engagement have reduced pipeline vandalism when compared with the spate of attacks on oil installations in the Niger Delta Region as at March 2016.

Speaking at the recently concluded Nigeria Oil and Gas Conference (NOG) in Abuja, the Minister of State for Petroleum Resources, Ibe Kachikwu, stated that the federal government has commenced engagement of major stakeholders from the region and this has resulted into relative peace in the region.

Accordion to him, “the Acting a President has visited four States in the Niger Delta has a way of engaging the stakeholders after stakeholders’ meeting with President Muhammadu Buhari late last year on how best to achieve peace and stability in the region.

The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mr Maikanti Baru, said the ongoing negotiations with stakeholders in the Niger Delta was responsible for the surge in daily crude oil production which is now in excess of 2.1 million barrels of oil per day (bpd) from about 1.4 million bdp last year.

The NNPC Boss also said that the renewed efforts towards combating oil theft may have yielded the desired result as pipeline vandalism is reduced to 20 per cent as against the 58 per cent reduction recorded last December.

The GMD stated that the 20 per cent reduction was achieved on a monthly basis.

He said stressed that the operating environment has greatly improved compared to what obtained in the past.

‘‘We will continue to improve on our existing approach to engage stakeholders and indigenes in the Niger Delta region on the need to embrace peace and dialogue to move the country forward in a bid to shore up government’s revenue. This is an indication of friendly environment for business,’’ he said.

It may be recall that NNPC, in its December monthly report, had said that it recorded about 58 per cent reduction in cases of pipeline sabotage.

According to the report, only 18 cases of vandalized points on downstream pipelines were recorded in November 2016 as against 43 in the previous month. The downward trend in the cases of pipeline sabotage, according to the report, was due to sustained engagement with stakeholders by the Federal Government and the NNPC.

Meanwhile the Managing Director, Shoreline Natural Resources, Mr Ladi Bada, said shared responsibility is the way to go, adding that a multi-level stakeholder approach would help the sector get the desired result, rather than leaving all solution for government.

Chief Executive Officer, Oando Energy Resources Limited, Mr Pade Durotoye, said it remained worrisome that security represents about 30 to 40 per cent cost in oil and gas operation, saying in other climes, only 1 per cent is spent on security.

He, however, advised that government should do more to protect oil and gas assets, especially as about 90 per cent of oil and gas operations are domiciled onshore.