The Nigerian National Petroleum Company Limited (NNPCL) has announced a major breakthrough in the fight against oil theft, revealing that pipeline functionality is now approaching 100% following coordinated security operations across the country.

According to NNPC Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, the improvement marks a significant shift from the situation three years ago, when only 30% of oil transported through certain pipelines reached Nigeria’s export terminals due to widespread theft and sabotage.

“Today, I can proudly report that our pipeline and terminal receipts are attaining close to 100%,” Ojulari stated during a regional security forum in Abuja.

Ojulari credited the success to enhanced security measures, particularly in the Niger Delta region where most oil infrastructure is located, as well as the involvement of defence and intelligence agencies in dismantling sophisticated international syndicates behind crude theft.

The security gains come at a critical time as Nigeria aims to boost oil production. The national oil regulator projected last week that the country’s output could surpass 2.5 million barrels per day by next year, a level last seen in 2005 before militancy slashed production to about 1 million barrels per day by 2016.

In 2021, Nigeria began engaging private security contractors to complement state security agencies in protecting critical infrastructure, a move that has strengthened pipeline integrity and restored investor confidence in the sector.

Strategic Gas Supply Agreements Signed

In a related development, NNPC and several upstream operators have signed long-term Gas Supply Agreements (GSAs) with the Nigeria Liquefied Natural Gas (NLNG). The 20 year agreements, with extension options, will supply 1.29 billion standard cubic feet of feedgas per day to NLNG.

The signing ceremony at NNPC Towers in Abuja was attended by representatives from Sunlink Energies, Amni International, First E&P, SNEPCo, Oando Group, Shell Nigeria Gas Solutions, NNPC Gas Marketing, and Aradel Holdings.

“These GSAs have opened up opportunities for growth in our industry both locally and internationally. They’re hinged on collaboration, synergies, and economies of scale to achieve the President’s decade of gas vision,” Ojulari said.

NLNG Managing Director Philip Mshelbila noted that the agreements would enhance gas production capacity, improve supply reliability, and strengthen Nigeria’s energy security, industrialisation, and economic growth.

The NLNG is an incorporated joint venture (IJV) owned by NNPC (49%), Shell Gas (25.6%), TotalEnergies (15%), and Eni International (10.4%).

Earlier in March, NNPC began discussions with the Dangote Refinery to extend their existing naira-based crude oil supply agreement, further demonstrating the company’s push for energy stability and economic resilience.