Fakoyejo OlalekanChairman of Shell Companies in Nigeria, Osagie Okunbor, said the oil and gas company discovered 460 illegal connections on its Trans Niger Pipeline.
Prime Business Africa understands that the Trans Niger Pipeline is connected to oil fields in Rivers and parts of Bayelsa for evacuation of crude oil to the Bonny Crude Oil Export Terminal.
The 460 illegal connections are used by oil thieves to steal crude from Shell’s Trans Niger Pipeline, leading to the shutdown of the pipeline for a year. Oil theft has been a challenge that has forced many foreign oil firms to exit or shut down temporarily.
Okunbor made this known on Tuesday in Abuja during various sessions at the 6th Nigeria International Energy Summit.
His comment was in response to a question about the industry’s challenge, including oil theft, which the incoming administration needs to address.
Okunbor said several solutions have been proffered to the government, such as the document on the Decade of Gas, hinting that the implementation of the guide will tackle the industry’s 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 per cent capacity. I think today that’s almost just how much gas we can supply.
“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,” he told the audience.
Speaking on the plans the next administration should have for the oil and gas industry, the industry big shot said: “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.”
He said the issues are quite known, but there’s a need for willpower to execute: “We know exactly what is needed, but it is that power of execution, just that courage to get things done without obstructing facts, that’s really what is the ban of our challenges.”
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