The Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari, has stated that the nation’s refineries were shut down because crude could not be supplied to them through the vandalized pipelines despite maintenance being carried out.
The NNPC GMD statements were contained in the 2021 budget proposal presented to the House of Representatives Joint Committee on Petroleum Upstream, Downstream and Gas.
According to reports released, Kyari had said the shutdown of refineries were deliberate as its operation was no longer reasonable.
Mele Kyari also stated that it was practically impossible to run pipeline at their optimum capacity.
“For instance, to run Kaduna and Warri refinery, you need to deliver 170,000 barrel of oil per day so that both will operate at 70 per cent capacity,” he said.
“And I can tell you today that except the Atlas cove to Ibadan line and also the Port Harcourt to Aba line, none of these pipeline is serviced.
“We cannot flow product into these lines, the cheap one is to say they are aged but the real reason is that the level of activities of vandals on these lines is gross, monumental and profound,” he said.
Kyari explained that more than N40 billion was lost due to vandalization activities within the first half of the year and the Corporation attends to eighty vandalization points every month.
Kyari also touched on the effects of the economic situation on sales of oil which has resulted to reduced oil demands as more countries begin to focus on producing renewable energy.
He added that the NNPC has failed to meet its cash obligations due to decline in revenue while calling on the National assembly to pass the Petroleum Industry Bill.
The NNPC GMD stated that the nation has also keyed into renewable energy alternatives amidst measures taken to improve the oil sector.