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EFFICIENT AND SUSTAINABLE SUPPLY OF PETROLEUM PRODUCTS IN NIGERIA - The Many HSE Challenges By

EFFICIENT AND SUSTAINABLE SUPPLY OF PETROLEUM PRODUCTS IN NIGERIA - The Many HSE Challenges By PIPELINES AND PRODUCTS MARKETING COMPANY LIMITED (A Subsidiary of Nigerian National Petroleum Corporation). OUTLINE. History Fulfilling its mandate Ensuring product supply HSE Challenges

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EFFICIENT AND SUSTAINABLE SUPPLY OF PETROLEUM PRODUCTS IN NIGERIA - The Many HSE Challenges By

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  1. EFFICIENT AND SUSTAINABLE SUPPLY OF PETROLEUM PRODUCTS IN NIGERIA - The Many HSE Challenges By PIPELINES AND PRODUCTS MARKETING COMPANY LIMITED (A Subsidiary of Nigerian National Petroleum Corporation)

  2. OUTLINE • History • Fulfilling its mandate • Ensuring product supply • HSE Challenges • Solutions • Conclusion 2

  3. HISTORY NNPC IDSL NETCO PHRC NGC WRPC NAPIMS KRPC HYSON RETAIL NPDC PPMC • 1 of the 11 wholly-owned subsidiary companies of NNPC • Necessity occasioned by new refineries (KRPC, WRPC, PHRC) • Created in 1988 after NNPC was re-organized to an NOC • Ease of petroleum product sourcing & distribution within Nigeria at a uniform price. • Energy need for a growing economy • Catalyse economic development across the country • Ensure availability petroleum products to sustain industrial growth across the country • Government investment in pipeline infrastructure requirement to meet goal 3

  4. PPMC LIMITED Objectives of the Company Provide excellent customer services by transporting crude oil to the refineries. Move refined petroleum products from the refineries. Ensure fuels supply to existing and future markets efficiently and at low cost through a safe and well maintained network of pipelines and depots. Profitably and efficiently market refined petroleum products in the domestic as well as export markets especially in the ECOWAS sub-region (LPG, Gasoline, Kerosene, GO, FO, Base oils, Lubricating oils, Solvents, Waxes, Bitumen etc.). Provide marine services. 4

  5. PPMC – FULFILLING ITS MANDATE Gusau Kano • 5,120km PPL Network • Cheap & Efficient means to reach market • Tough and Rough Terrains • Challenges of Communication • Response Time • Security of Response Team Maiduguri Biu Zaria Gombe Kaduna Sarkin Pawa Jos Minna Izom Yola Suleja Abaji Ilorin Makurdi Lokoja Ibadan Auchi Mosimi Ore Satellite Abudu Benin Refinery Enugu Atlas Cove Depot Escravos Warri Pump Station (Stand Alone) Calabar Port Harcourt 5

  6. PPMC – ENSURING PRODUCT SUPPLY • Atlas Cove – Mosimi Pipeline • Represents just about 2% (72.8km) • of all NNPC’s pipeline network • nationwide • Serves as the gateway for 70% • product importation into Nigeria • Supply remote markets by Bridging 6

  7. VANDALISED ATLAS COVE – MOSIMI PIPELINE (2001 – 2011) Vandalism within Lagos account for 85% of the total cases on Atlas Cove – Mosimi Pipeline. Arepo • Atlas Cove Communities • Idimu • Ijegun • Akute • Ijeododo 7

  8. ANNUAL PRODUCT LOSSES ON ATLAS COVE – MOSIMI PIPELINE (2001 – 2011) 8

  9. MAJOR POLLUTION/FIRE INCIDENTS 1 2000 Baruwa Community Underground Water Pollution resulting from years of vandalism involving NNPC valve pit within the community. 2 Imore, Ilado and Arepo Fire Disaster resulting from vandalism of NNPC Pipeline. 2004 3 • Abule Egba Fire Disaster as a result of vandals’ failed valve inserted on NNPC Pipeline. 2006 4 • Ijegun Fire Disaster resulting from punctured NNPC Pipeline from road construction by Lagos State Government and HITEC. 2008 5 • Alagbole/Akute Spillage resulting from failed valve inserted on NNPC Pipeline by vandals 2010 6 • Idimu (Diamond Estate) Underground Water Pollution resulting from seepage of petroleum product from years of vandalism. The pipeline segment has been replaced by NNPC in the past. 2010/2011 The Recurring Decimal VANDALISM 9

  10. PPMC – HSE CHALLENGES 1 Pipeline Security • Vandalism • Planned Attacks • Valve Insertion 2 Oil Spillage & Seepage • Ground Water Pollution • Environmental/Ecological damage 3 Fire • Safety of Lives and Properties • Ecological damage 4 Safety/Security • Personnel on pipeline routine/maintenance 5 Products Trucking • State of the roads • Effects on the roads 10

  11. ECONOMIC COST OF PIPELINE VANDALISM Energy Use and GDP Energy & Economic Growth D. Stern, 2003 Application of System Dynamics as a Policy Evaluation Tool: the Nigerian Perspective Credit: Timothy S. Mbasuen and Richard C. Darton 11

  12. RECORDED INCIDENTS ON ATL. COVE – MOSIMI PIPELINE SEGMENT (2001 – 2011) Vandal’s Valve installed on NNPC Pipeline Robert Village (2010) Vandal’s siphon hose hidden after product theft from valve point Robert Village Vandal’s Valve – Atlas Cove (2010) Vandalized point - Robert Village (2010) 12

  13. RECORDED INCIDENTS ON ATL. COVE – MOSIMI PIPELINE SEGMENT (2001 – 2011) Burnt Vandal’s truck – Gbara (2008) Valves insertion Transportation channel - Maba Village Idimu (Diamond Estate) (December 2010) 13

  14. RECORDED INCIDENTS ON ATL. COVE – MOSIMI PIPELINE SEGMENT (2001 – 2011) 14

  15. WARRI – ESCRAVOS CRUDE OIL PIPELINE KOKOLOGBENE KPOKPO CREEK, ALONG ESRAVOS-WARRI PPL EGWA AGHALOKPE 15

  16. WARRI – ESCRAVOS CRUDE OIL PIPELINE KPOKPO MAIN RISER. OPUEDEBUBOR INIKOROGHA EGWA RISER WEST 16

  17. WARRI – KADUNA CRUDE OIL PIPELINE Photo Credit: NOSDRA Photo Credit: NOSDRA IREPENI PIC. 1, 2 & 3 ADOGO (SEPTEMBER 9, 2012) 17

  18. WARRI – KADUNA CRUDE OIL PIPELINE SYSTEM 2C ALONG JETTU, AUCHI, EDO STATE SYSTEM 2C PPMC PIPELINE, EKPOMA, EDO STATE Photo Credit: NOSDRA 18 17

  19. WARRI – KADUNA CRUDE OIL PIPELINE KM 223, Oguda (24/08/12) KM16, Gaba Village, FCT Photo Credit: NOSDRA KM 77 Kwaita Village, FCT KM 77 Kwaita Village, FCT Photo Credit: NOSDRA 19

  20. WARRI – KADUNA CRUDE OIL PIPELINE KM 261 Osara KM 261 Osara: Over 120 Radius impacted Oil on water – Geregu (50KM away) Oil on stream- Osara 20

  21. SAFETY AND SECURITY OF PERSONNEL • 5 Personnel lost in vandal induced pipeline fire in Arepo 2007 • GSW inflicted on PPMC Personnel by pipeline vandals – ATC-MOS Line • 3 Personnel killed in Vandal attack on PPMC Personnel – Arepo, Sept. 2012 • Various threats to life on the pipeline BE WARNED! WARNING! DISTURBING SIGHT UNDERNEATH 21

  22. WARRI – KADUNA CRUDE OIL PIPELINE 259 cases already recorded as at May, 2012 22

  23. SOLUTIONS 1 • Technology (Pipeline Security Systems – PSS) • Legislation • Law Enforcement Pipeline Security 2 Oil Spillage & Seepage • Pipeline Leak Detection Systems (PLDs) • Expedited Clean-ups to avert GW Pollution • Remediation 3 Fire • Reclamation of PROW • Campaign/Awareness • Prompt Response to Pipeline Incidence 4 Safety/Security • Cooperation of Security Agencies • Law Enforcement 5 Products Trucking • Roadworthy Trucks • Shorter distances of travels • Tracking 23

  24. CONCLUSION Most Importantly, Our environment is our most important resource. PPMC seeks the partnership of all in its fight against Pipeline Vandalism 24

  25. THANK YOU 24

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