63 illegal refineries uncovered amidst concerns over delay in Port Harcourt refinery operations

The Nigerian National Petroleum Company Limited (NNPCL) has reported the discovery and confiscation of products from 63 illegal refineries over the past week.

In a documentary released on Wednesday, the company revealed that in addition to uncovering 63 illegal refineries, they had also identified 19 illegal pipeline connections in the past week.

This announcement comes amid renewed concerns about the delayed commencement of operations at the Port Harcourt Refinery, despite previous commitments. The Port Harcourt Refining Company, a subsidiary of NNPCL in Rivers State, has yet again failed to start operations after approximately six postponements.

The Federal Ministry of Petroleum Resources and NNPCL had assured that the refinery would be operational this month. However, as the month draws to a close, there is still no indication that crude oil refining will begin soon.

In July, NNPCL’s Group Chief Executive Officer, Mele Kyari, asserted that the refinery would be operational by early August. This statement followed his 2019 commitment that NNPCL would have all the country’s four refineries running before the end of former President Muhammadu Buhari’s administration.

While appearing before the senate recently in July, Kyari boasted, “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, it will get to December, both Warri and Kaduna, but that of Port Harcourt will commence production early August this year.”

However, as August reaches its midpoint today, the Port Harcourt Refinery has yet to commence operations, raising concerns that this may be another unfulfilled promise from the national oil company.

NNPCL has not yet provided an explanation for the delay.

In an effort to demonstrate its commitment to combating crude oil theft and increasing the country’s revenue, the company reported uncovering 63 illegal refineries.

According to NNPCL, there were approximately 177 recorded incidents between August 3 and 9, reported by various sources including 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 the reviewed week, 19 illegal pipeline connections were identified and some underwent repairs at various locations in Bayelsa and Rivers States.

NNPCL stated that 63 illegal refineries were discovered and confiscated in Bayelsa, Rivers, Abia, Imo, and Delta States.

Additionally, a vandalized and barricaded oil wellhead was found in Bayelsa State, and stolen crude was discovered in oil reservoirs in Rivers State.

The company reported that 17 vehicular arrests were made in communities in Delta, Bayelsa, Rivers, and Akwa Ibom States.

A total of fifteen wooden boats carrying stolen crude were confiscated in Rivers and Bayelsa States.

The company disclosed that 51 incidents occurred in deep blue waters, 21 in the western region, 29 in the central region, and 76 in the eastern region.

At least 16 suspects were arrested in connection with these incidents over the past week.

Nigeria has been struggling with low crude oil production, which has deprived the country of significant revenue needed for capital projects.

Recently, billionaire businessman Tony Elumelu called on the government and security agents to identify those responsible for stealing Nigeria’s crude oil, especially using vessels that navigate through territorial waters.

He noted that this issue has contributed to the divestment of international oil companies from Nigeria. Speaking with the Financial Times, Elumelu mentioned that oil thieves continue to steal 18 percent of crude from his field.

He explained, “42,000 barrels of crude are pumped out daily. Theft still takes away about 18 per cent of production.

“This is oil theft; we are not talking about stealing a bottle of Coke that you can put in your pocket. The government should know; they should tell us.

“Look at America — Donald Trump was shot at and quickly they knew the background of who shot him. Our security agencies should tell us who is stealing our oil. You bring vessels to our territorial waters and we don’t know?”

Elumelu’s concern comes in the wake of a brawl between Aliko Dangote, government officials and IOCs over supply of crude oil to his Ibeju-Lekki 650, 000 oil refinery facility.