The Group Chief Executive Officer of the Nigerian National Petroleum Company Ltd. (NNPCL), Mr. Bashir Ojulari, says the company will collaborate with the Pipeline Professionals Association of Nigeria (PLAN) to strengthen indigenous capacity, reduce pipeline operational costs and improve infrastructure financing.
Receiving members of the PLAN, led by its Chairman, Board of Trustees, Mr Geoff Onuoha, who paid him a courtesy visit on Thursday in Abuja, Mr. Ojulari identified capacity building, cost reduction and innovative financing as key areas of collaboration between the company and the professional association.
“By working together, we will be able to reduce overall pipeline costs and make more projects economically viable and attractive to investors.
“The partnership will focus on developing individual expertise and training more pipeline engineers to strengthen indigenous technical capacity in the oil and gas industry,” Ojulari said.
He disclosed that the NNPCL had raised 1.5 billion dollars for the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project based solely on projected pipeline throughput.
Describing the development as a milestone, he noted that it demonstrated the viability of securing financing for pipeline infrastructure independently of upstream or downstream projects.
Ojulari said that the financing model had created opportunities for similar projects, adding that the NNPCL would explore further collaboration with the group in developing bankable pipeline projects.
On pipeline security, he said that the company was working with government security agencies and community surveillance contractors under an integrated pipeline security framework coordinated by the Office of the National Security Adviser.
He explained that the approach combined conventional security measures with community engagement to address pipeline vandalism, crude oil theft and other operational challenges.
According to him, the strategy has improved the availability of major pipelines to between 95 and 100 per cent over the last 18 months.
Ojulari further emphasised the importance of host community development, saying the effective implementation of Host Community Development Trusts under the Petroleum Industry Act (PIA) 2021 was contributing to improved relations with host communities.
Speaking earlier, Onuoha said that PLAN had consistently advocated the integration of social considerations into pipeline operations, adding that host communities must have a sense of ownership and involvement in protecting the infrastructure.
He said that the association had developed and promoted social metrics for pipeline operations, recognising that effective pipeline security depended not only on technical measures but also on the relationship between operators and host communities.
“And we’ve been communicating with NNPC on that, especially on the social, technical relationship as far as pipeline operation is concerned.
“The association’s advocacy has contributed to discussions around host community development and the need to strengthen the social dimension of pipeline operations,” he said.
GIK/APA