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NNPC Mulls Extending Crude Pipeline Surveillance Contract To Downstream

vandalized pipeline

As part of efforts to drive down cost, the Nigerian National Petroleum Corporation (NNPC) says it is considering extending the Escravos-Warri crude oil evacuation pipeline surveillance contract model to downstream pipelines to guarantee efficient crude supply to the refineries post-rehabilitation.

Chief Operating Officer, Upstream, Mallam Bello Rabiu, made this known according to a statement issued in Abuja on Sunday, by the Corporation’s Spokesman, Ndu Ughamadu.

“Before now, it was not possible to get crude to Warri and Kaduna refineries. But with the kind of security contract in place for the Warri-Escravos Pipeline, we now have 99percent crude oil recovery rate.

The balance is paid for by the contractor. That is why we have replicated that model for the Trans-Forcados Pipeline to guarantee security”, Rabiu explained, emphasising why the corporation is considering replicating same model for downstream pipelines.

He further said the major focus of the Upstream Autonomous Business Unit of the NNPC was to drive down the cost of crude oil production and link the oil and gas Industry with the economy.

According to him, bringing down the cost of production would lead to cheaper energy cost which would in turn boost industrial and economic growth.

He said security and funding that used to be the bane of upstream operations have been largely taken care of by the corporation through practical engagement with stakeholders in the Niger Delta region and the cash-call exit programme.

 

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