63 Illegal Refineries Discovered Amid Concerns Over Delays at Port Harcourt Refinery.
The refinery managed by NNPCL has once again failed to start operations after being postponed six times.
The Nigerian National Petroleum Company Limited reported that it has discovered and seized products from 63 illegal refineries in the past week.
In a documentary released by the company on Wednesday, it was revealed that 19 illegal pipeline connections and 63 illegal refineries were uncovered in the Niger Delta in the past week.
This announcement comes amid renewed concerns about the delayed commencement of operations at the Port Harcourt Refinery, as previously announced.
The Port Harcourt Refining Company, a refinery managed by the company in Rivers State, has failed to commence operations after about six postponements.
The Federal Ministry of Petroleum Resources and NNPC had promised to get the refinery up and running this month. However, there is no sign of the facility kick-starting crude oil refining as the month comes to an end.
In July, the Group Chief Executive Officer of the NNPC, Mele Kyari, stated that the refinery would come into operation in early August.
This comes after he said in 2019 that the NNPC would deliver all the country’s four refineries before the end of former president Muhammadu Buhari’s administration.
“I can confirm to you, Mr. Chairman, that by the end of the year, this country will be a net exporter of petroleum products.
“Specific to NNPC refineries, we have spoken to a number of your committees, and it is impossible to have the Kaduna refinery come into operation before December.
Both Warri and Kaduna will get to December, but that of Port Harcourt will commence production early August this year,” Kyari boasted while appearing before the Senate in July.
- DR. SADIQ UMAR ABUBAKAR GOMBE REMAINS THE NATIONAL CHAIRMAN OF SDP
- APC Only Party with Capacity to Secure Nigeria’s Future — Yilwatda
- APC Chairman Visits Plateau Attack Victims, Donates N15 Million, Pledges End to Killings
The refinery has not yet started operations as August reaches its midpoint, raising concerns over another unfulfilled promise from the national oil company. NNPCL has not commented on the cause of the delay.
In an effort to combat crude oil theft and enhance national revenue, the company reported uncovering 63 illegal refineries. The NNPC noted 177 incidents from August 3 to 9, with various sources: Tantita Security Services (4), Shell Petroleum Development Company (11), Pipeline Infrastructure Nigeria Limited (26), Maton Engineering Company (20), NNPC 18 Operating Ltd (1), NNPC Command and Control Centre (51), and government security agencies (64).
During this period, 19 illegal pipeline connections were recovered, and some were repaired in Bayelsa and River States. NNPCL identified and seized 63 illegal refineries across Bayelsa, Rivers, Abia, Imo, and Delta States, alongside a vandalized oil wellhead and stolen crude in Rivers State.
The state-owned firm reported 17 vehicle arrests in Delta, Bayelsa, Rivers, and Akwa Ibom States, as well as the confiscation of 15 wooden boats carrying stolen crude in Rivers and Bayelsa.
Of the incidents, 51 occurred in deep water, 21 in the west, 29 in the center, and 76 in the east, with at least 16 suspects arrested last week.
Nigeria is currently facing challenges with low crude oil production, which has significantly impacted the country’s revenue for capital development projects.
Production levels have been between 1.1 million and 1.3 million barrels per day in recent years. According to the Organization of the Petroleum Exporting Countries’ August 2024 report, production rose to 1.3 mb/d in July from 1.2 mb/d in June. However, this figure remains below the OPEC+ quota of 1.5 mb/d.
Billionaire businessman Tony Elumelu recently emphasized the need for the government and security agencies to identify those responsible for stealing Nigeria’s crude oil, particularly from vessels operating in its territorial waters.
He pointed out that oil theft has driven International Oil Companies to divest from Nigeria, with criminals taking about 18 percent of production from his field.
Elumelu explained, “42,000 barrels of crude are pumped daily, and theft accounts for roughly 18 percent.” He stressed the urgency of the situation, comparing it to the immediate identification of suspects in high-profile cases in the U.S. He criticized the lack of transparency from Nigeria’s security agencies regarding oil theft in coastal waters.
Elumelu’s remarks come amid tensions between Aliko Dangote, government officials, and International Oil Companies over crude oil supply to his Ibeju-Lekki refinery, which has a capacity of 650,000 barrels per day.
