'Oil companies allege host communities responsible for pipeline vandalisation’ 17 October 2024

Oil companies operating in Nigeria have claimed that members of host communities are responsible for oil theft and pipeline vandalism in the region. This assertion was made during a public hearing on oil theft, pipeline vandalism, and their impact on oil-producing states, organized by the House of Representatives in Abuja. The companies pointed to environmental pollution in the South-South region, linking it to the destructive activities of vandals, particularly within the host communities. Philip Akuduro, the Team Lead for Oando PLC, highlighted that a significant portion of oil spills is due to vandalism. Akuduro explained that many of the vandals, who are increasingly involved in crude oil theft through illegal connections and damage to oil infrastructure, are residents of the host communities.

…Mr. Ewarezi Useh, Chief Operating Officer of Aieto Group, a petroleum company, also attributed the decline in crude oil production to the actions of vandals. Useh emphasized the need for a harmonious relationship between oil companies and their host communities as a key solution to combating the problem. He added that the joint efforts of security agencies have been effective, with crude oil production now beginning to show signs of recovery. Rep. Julius Pondi (PDP-Delta), Chairman of the House Committee on Environment, reaffirmed the committee’s commitment to uncovering the causes of environmental degradation and pollution linked to oil company operations.

…The Nigerian National Petroleum Company Limited (NNPCL) and the Ministry of Petroleum estimate that the country loses between 200,000 and 400,000 barrels of crude oil daily due to theft.

• In a recent interview with Channels Television, NNPCL’s Group Chief Executive Officer, Mr. Mele Kyari, revealed that since the crackdown on illegal refineries began in 2022, 8,684 sites—referred to as “boiling points” rather than actual refineries—were deactivated.
• He also disclosed that 6,610 illegal pipeline connections were discovered, with 5,913 of them removed. Despite these efforts, Kyari pointed out that over 1,000 illegal connections remain, and new ones are reconnected daily, complicating the fight against oil theft.