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HomeBusinessShell Petroleum boss wants incoming govt to priortise security in oil sector

Shell Petroleum boss wants incoming govt to priortise security in oil sector

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Shell Petroleum Development Company of Nigeria (SPDC) managing director Osagie Okunbor stated that the business found and destroyed 460 illicit connections on the Trans Niger Pipeline (TNP) before restarting operations after a one-year hiatus.

The SPDC-operated TNP pipeline transports approximately 180,000 barrels of crude per day to the Bonny export terminal.

Okunbor stated on Tuesday at the 2023 Nigeria international energy summit in Abuja that the TNP was closed for a year due to major crude oil theft on the pipeline.

Okunbor urged the incoming administration to prioritize oil infrastructure security.

He said Nigeria was not short of frameworks and written documents on how to tackle the various challenges in the oil sector.

The managing director of the local unit of the Dutch oil firm noted that the decade of gas document, for example, included steps to deepen gas use, but implementation remained a challenge.

“What keeps me awake today as regards my onshore business in Shell is the fact that we cannot operate a pipeline, and that’s what is responsible for the 60 percent capacity. I think today that is almost just how much gas we can supply,” he said.

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“And this is because one of our key gas infrastructures — the TNP — was shut down for one year; we removed 460 illegal connections on that line. We just reopened that line. Today we are struggling to catch up with our first programme.”

According to Okunbor, the loss was widely interpreted as impacting Nigeria’s oil output quota to the Organization of Petroleum Exporting Countries (OPEC).

He emphasized that the situation was also having a negative impact on gas supply to the Nigeria Liquefied Natural Gas (NLNG).

“So, if you ask me what the number one issue has to be for the incoming administration, it has to be the security of oil and gas infrastructure. If you don’t fix it, then we have a huge problem on our hands,” Okunbor said.

The managing director of NLNG Limited, Philip Mshelbila stated that 40 percent of the capacity of globally known gas corporations was laying fallow owing to theft.

He went on to say that the industry’s inability to put recommendations and policies in various oil sector documents and regulations into action had remained a struggle.

The Nigerian National Petroleum Company (NNPC) reported last year that it discovered an illegal connection on the Trans Escravos pipeline linked to the 4-kilometer Afremo test line.

(omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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