Nigeria’s biggest oil pipeline records zero crude loss in May

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Crude oil production transported through the Trans-Niger Pipeline (TNP) into the Bonny terminal did not record any losses in May, a significant development considering that over 400 illegal connections were removed on the line in April.

Analysts say this shows the government’s reforms including engaging private security and ramping off security measures and engagement with host communities may be bearing fruit.

“The fact that the month of May recorded zero incidences of pipeline transportation on Shell’s 28-inch Trans Niger Pipeline from flow stations in Rivers & parts of Bayelsa State is proof that the Task Force set up by the President to investigate coordinated crude oil theft is working,” said Kelvin Emmanuel, energy sector expert and co-founder/CEO at Dairy Hills.

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The Trans Niger Pipeline (TNP) is considered one of Nigeria’s biggest oil pipelines. It is a major crude oil transportation pipeline in the Niger Delta region, which is known for its significant oil reserves. The Trans Niger Pipeline is operated by the Shell Petroleum Development Company and the Nigerian National Petroleum Company Limited (NNPC) and spans approximately 180 kilometers (112 miles).

The TNP is an important infrastructure for transporting crude oil from oilfields in the Niger Delta to export terminals, primarily the Bonny Export Terminal. It has the capacity to transport over 450,000 barrels of crude oil per day, contributing significantly to Nigeria’s oil production and export.

Data from the Nigerian Upstream Petroleum Regulatory Commission shows that oil production (crude oil and condensate) via the Bonny Terminal increased by 24 percent from 3.0 million barrels in April to 3.72 million barrels last month.

The TNP is a major pipeline that transports about 180,000 barrels of crude per day to the Bonny export terminal. The Bonny terminal, a major onshore crude oil terminal, has a 5.7-million-barrel capacity.

Osagie Okunbor, managing director of Shell Petroleum Development Company of Nigeria (SPDC), at an oil and gas conference in April, said the company detected and removed 460 illegal connections on the Trans Niger Pipeline (TNP) before resuming operations after a one-year shutdown.

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Etulan Adu, an oil and gas production engineer said the improved output was due to pipeline intervention works, curbing bunkering and oil theft activities along the line, as well as increasing injection from producing companies and third-party injectors to the terminal.

“These factors have a direct relationship and impact on volumes. Being intentional about this would go a long way in maintaining it. The Policy Advisory Council is apt on the nation sending out a strong signal that it’s not business as usual with regards to insecurity,” said Jide Pratt, chief operating officer of Aiona and country manager of Trade Grid.

With a capacity to handle significant volumes of crude oil, Bonny Terminal has been a critical component of Nigeria’s oil industry for years.

Despite its importance, the terminal has faced numerous challenges in the past, including attacks and disruptions that have led to force majeures, significant losses and disruptions in oil production.

In August last year, Mele Kyari, group chief executive officer, of Nigerian National Petroleum Company (NNPC) Limited said Nigeria was losing 95 percent of oil production at the Bonny terminal due to oil theft.

This was the period when Nigeria produced less than 1 million barrels per day, due to heightened oil theft and vandalism.

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This is the pipeline it uses to evacuate crude from oil fields in rivers and parts of Bayelsa to the Bonny crude oil export terminal, as other international oil companies lamented the grave impact of oil theft on their operations.

To combat these challenges, Pratt said that engagement in the oil and gas sector, military task force reforms, and key performance indicators are pertinent.

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“With this in place, the government will send a clear investment climate to sustain this. The ministry and the NNPC Ltd must now be run by competent staff so that we have a constant and consistent way which is up,” Pratt said.

Adu added that strong collaboration with all government agencies, producing companies, community stakeholders and on-stream of some facilities that were shut down will increase and maintain production in the major terminal.

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Source: BUSINESSDAY

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Sanya Onayoade

Continental Editor, North America

SANYA ONAYOADE is a graduate of Mass Communication and a Master of Communication Arts degree holder from the University of Ibadan. He has attended local and international courses on Media, Branding, Public Relations and Corporate Governance in many institutions including the University of Pittsburgh; Reuters Foundation of Rhodes University, South Africa and Lagos Business School. He has worked in many newspaper houses including The Guardian and The Punch. He was the pioneer Corporate Affairs Manager of Odua Telecoms Ltd, and later Head of Business Development and Marketing of Nigerian Aviation Handling Company (NAHCO Plc).

He has led business teams to several countries in the US, Asia and Europe; and was part of an Aviation investment drive in West Africa. He has also driven media and brand consultancy for a few organizations such as the British Council, Industrial Training Fund, PKF Audit/Accounting Firm and Nigeria Stability and Reconciliation Programme. He is a Fellow of Freedom House, Washington DC, and also Fellow of Institute of Brand Management of Nigeria. Sanya is a member of Nigerian Institute of Public Relations (NIPR), Advertising Practitioners Council of Nigeria (APCON) and Project Management Institute (PMI). He is a 1998 Commonwealth Media Awards winner and the Author of A Decade Of Democracy.
Morak Babajide-Alabi

Morak Babajide-Alabi

Continental Editor, Europe

Morak Babajide-Alabi is a graduate of Mass Communication with a Master of Arts Degree in Journalism from Napier University, Edinburgh, United Kingdom. He is an experienced Social Media practitioner with a strong passion for connecting with customers of brands.

Morak works as part of a team currently building an e-commerce project for the Volkswagen Group UK. Before this, he worked on the social media accounts of SKODA, Audi, SEAT, CUPRA, Volkswagen Passenger Cars, and Volkswagen Commercial Vehicles. In this job, he brought his vast experience in journalism, marketing, and search engine optimisation to play to make sure the brands are well represented on social media. He monitored the performance of marketing campaigns and data analysis of all volumes of social media interaction for the brands.

In his private capacity, Morak is the Chief Operating Officer of Syllable Media Limited, an England-based marketing agency with head office in Leeds, West Yorkshire. The agency handles briefs such as creative writing, ghostwriting, website designs, and print and broadcast productions, with an emphasis on search engine optimisation. Syllable Media analyses, reviews, and works alongside clients to maximise returns on their businesses.

Morak is a writer, blogger, journalist, and social media “enthusiast”. He has several publications and projects to his credit with over 20 years of experience writing and editing for print and online media in Nigeria and the United Kingdom.

Morak is a dependable team player who succeeds in a high-pressure environment. He started his professional career with the flagship of Nigerian journalism – The Guardian Newspapers in 1992 where he honed his writing and editing skills before joining TELL Magazine. He has edited, reported for, and produced newspapers and magazines in Nigeria and the United Kingdom. Morak is involved in the development of information management tools for the healthcare sector in Africa. He is on the board of DeMiTAG HealthConcepts Limited, a company with branches in London, Lagos, and Abuja, to make healthcare information available at the fingertips of professionals. DeMiTAG HealthConcepts Limited achieved this by collaborating with notable informatics companies. It had partnered in the past with Avia Informatics Plc and i2i TeleSolutions Pvt.

Out of work, Morak loves walking and also volunteers on the board of a few UK Charity Organisations. He can be reached via http://www.syllablemedia.com
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Ademola Akinbola

Publisher/Editor-in-Chief

Brief Profile of Ademola Akinbola

Ademola AKINBOLA is an author, publisher, trainer, digital marketing strategist, and a brand development specialist with nearly three decades of experience in the areas of branding, communication, corporate reputation management, business development, organizational change management, and digital marketing.

He is the Founder and Head Steward at BrandStewards Limited, a brand and reputation management consultancy. He is also the Publisher of The Podium International Magazine, Ile-Oluji Times, and Who’s Who in Ile-Oluji.

He had a successful media practice at The Guardian, Punch and This Day.

He started his brand management career at Owena Bank as Media Relations Manager before joining Prudent Bank (now Polaris Bank) as the pioneer Head of Corporate Affairs.

The British Council appointed him as Head of Communication and Marketing to co-ordinate branding and reputation management activities at its Lagos, Abuja, Kano and Port Harcourt offices.

In 2007, he was recruited as the Head of Corporate Planning and Strategy for the Nigerian Aviation Handling company. He led on the branding, strategic planning and stakeholder management support function.

His job was later expanded and redesigned as Head of Corporate Communication and Business Development with the mandate to continue to execute the Board’s vision in the areas of Corporate Planning and Strategy, Branding and New Businesses.

In 2010, he voluntarily resigned from nacho aviance to focus on managing BrandStewards, a reputation and brand management firm he established in 2003. BrandStewards has successfully executed branding, re-branding and marketing communication projects for clients in the private and public sectors.

Ademola obtained a M.Sc. Degree in Digital Marketing & Web Analytics from Dublin Institute of Technology in 2016, and the Master of Communication Arts degree of the University of Ibadan in 1997. He had previously obtained a Higher National Diploma (with Upper Credit) in Mass Communication from Ogun State Polytechnic, Abeokuta.

He has published several articles and authored five management books.

He has benefitted from several domestic and international training programmes on Brand Management, Corporate Communications, Change Management and Organizational Strategy.
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