The Nigerian National Petroleum Company Ltd. (NNPC Ltd.) has embarked on a collaboration with the Pipeline Professionals Association of Nigeria (PLAN) aimed at strengthening local capacity in the oil and gas sector, lowering operational costs for pipelines, and improving infrastructure financing.
During a recent meeting in Abuja, the Group Chief Executive Officer of NNPC Ltd., Mr. Bashir Ojulari, emphasized that key areas of this partnership would include capacity building and innovative financing. He stated that the objective of their joint efforts is to make pipeline projects more economically viable and appealing to investors.
Ojulari noted that NNPC Ltd. had successfully raised $1.5 billion for the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project, showcasing the feasibility of financing such projects independent of upstream or downstream activities. He expressed that this funding model opens doors for similar initiatives.
In terms of pipeline security, Ojulari revealed that NNPC Ltd. is collaborating with government security agencies and community surveillance initiatives within an integrated framework coordinated by the Office of the National Security Adviser. This approach, he explained, merges traditional security measures with community involvement to combat pipeline vandalism and crude oil theft, resulting in major pipeline availability rates of 95 to 100 percent over the past 18 months.
Emphasizing the importance of community relations, Ojulari pointed to the positive impact of the Host Community Development Trusts established under the Petroleum Industry Act (PIA) 2021. He mentioned ongoing efforts to promote job creation and economic opportunities in host communities to deter youth from engaging in vandalism.
PLAN Chairman, Mr. Geoff Onuoha, highlighted the association’s continuous advocacy for integrating social considerations into pipeline operations, asserting that it is essential for host communities to feel a sense of ownership and involvement in protecting critical infrastructure. He noted that strong social ties between operators and the communities contribute significantly to pipeline security.
Mr. Adeche Omotosho-Oboro, PLAN’s Vice President, pointed out that this partnership aims to address the challenges related to crude oil and gas transportation. He announced that the upcoming Nigerian International Pipeline Technology and Energy Conference and Exhibition (NIPITECS) would focus on financing and developing viable pipeline projects.
In a bid to enhance collaboration, Mr. Audu Ibrahim, Managing Director of the NNPC Gas Infrastructure Company (NGIC), has been appointed as the appointed liaison between NNPC Ltd. and PLAN. Ibrahim stated that this role would help in advancing the oil and gas sector by integrating local technical expertise into larger industry initiatives.
The visit by PLAN representatives included the presentation of a plaque to Ojulari and sharing materials on upcoming events and their objectives.
