The Nigeria National Petroleum Corporation Limited has the first right of refusal to supply the Dangote refinery with approximately 300,000 barrels of crude oil per day for the next 20 years.
The Group Chief Executive Officer, NNPC Ltd, Mele Kyari, disclosed this to journalists when he appeared at the 49th session of the State House Ministerial Briefing, hosted by the Presidential Communications Team, at the Presidential Villa, Abuja.
A supply of 300,000 a day in 20 years brings the total supply to 2.1 trillion, according to the NNPC.
According to him, the company had managed to cut off the massive supply as part of the federal government’s resources to ensure sufficient petroleum products for Nigeria.
“We have been granted the right to sell up to 300,000 barrels of crude oil to the Dangote refinery over the next 20 years. Not only that, we also have legal access to 20 percent production from that factory,” he said.
He claimed that stolen crude oil products were now stored in places of worship such as churches and mosques.
He also noted that from April to August 2022, several law enforcement agencies arrested 122 individuals involved in pipeline vandalism and oil theft.
This was because he justified the government’s recent move to hire private entities to protect the network of oil pipelines crossing the country.
According to him, the NNPC agents discovered that stolen petroleum products had been stored in places of worship with the permission of the clergy, members and neighbors.
He claimed that in one case at least 295 illegal connections were detected on a 200 km pipeline.
“As you may know, due to the very unfortunate acts of vandals along our major pipelines from Atlas Cove all the way to Ibadan, and all the others connecting all 37 depots we have across the country, none of them can deliver the products today.
“The reason is very simple. For some lines, for example from Warri to Benin, we have not operated them for 15 years. Every product molecule we put into it is lost. You remember the sad fire incident near Sapele that killed so many people. We had to shut it down and right now we have a high level of losses on our product pipeline.
“You remember Lagos, when a fire broke out on one of our pipelines. We found that some pipes were actually connected to individuals’ homes. And not only that, with all the sensitivity to our religious beliefs, some of the pipelines and some products that we found were in churches and mosques,” Kyari said.
He explained that the wave of vandalism had prompted NNPC Limited to shut down its network of pipelines transporting petroleum products through high-theft areas.
“When we say we’re losing 700,000 barrels of crude oil a day, we mean it. This is a missed opportunity. There is no company that is going to produce oil and then you lose 80 percent of that and you keep producing the oil.”
The NNPC chief said the government’s response to oil theft led to the arrest of 122 people between April and August 2022.