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NASS Petroleum committees dismiss petitions, back pipeline surveillance contract

…Pass vote of confidence on Tantita, security agencies, NNPC

The joint committees on Petroleum Resources of the National Assembly have dismissed three petitions challenging the pipeline surveillance contract, while passing a vote of confidence on Tantita Security Services, security agencies, and the Nigerian National Petroleum Company Limited (NNPC) for improving oil production and safeguarding critical assets.

The resolution followed a motion moved by Chairman of the House Committee on Petroleum Resources (Midstream), Henry Okojie, during a one-day parliamentary roundtable on pipeline security and efforts to curb crude oil theft.

The committees noted that the surveillance arrangement has significantly boosted Nigeria’s oil output, which has risen to about 1.8 million barrels per day as of April, compared to roughly 900,000 barrels per day recorded in 2022 when the contract was introduced.

Okojie said available records show that Tantita and security agencies have made notable progress in protecting oil infrastructure, curbing vandalism, and increasing national revenue.

Speaking at the event, Speaker of the House of Representatives, Abbas Tajudeen, underscored the importance of sustained efforts to secure Nigeria’s oil sector amid global energy uncertainties.

He pointed to ongoing geopolitical tensions, including the Middle East crisis and the Russia-Ukraine conflict, as factors driving global energy instability, noting that crude oil remains the dominant source of energy, particularly in the transportation sector.

According to the Speaker, disruptions such as the closure of the Strait of Hormuz have triggered price increases and supply shortages, with direct implications for Nigeria’s economy.

Tajudeen explained that the pipeline surveillance contract became necessary due to longstanding challenges in the Niger Delta, where agitation, weak enforcement, and economic hardship fueled pipeline vandalism, crude oil theft, and illegal refining.

“At a point, Nigeria was losing between 10 and 30 per cent of its crude oil production to theft, costing the country billions of dollars annually and undermining its credibility as a reliable oil producer,” he said.

He noted that the Federal Government’s decision to engage private security firms and host communities was aimed at strengthening protection of oil facilities, stressing that community involvement has proven critical to the success recorded so far.

The Speaker highlighted that collaboration between private surveillance operators, security agencies, and local communities has led to the dismantling of many illegal tapping points, improved production levels, and increased delivery of crude to export terminals.

“Today, largely due to these efforts, Nigeria’s oil production has climbed to about 1.8 million barrels per day from previous lows,” he said.

Tajudeen also emphasized the social impact of the initiative, noting that it has created jobs for thousands of youths in the Niger Delta, many of whom were previously involved in agitation and illegal activities.

Despite the progress, he acknowledged that challenges remain, particularly in the areas of transparency, accountability, and the effectiveness of certain surveillance frameworks.

He said reports of ongoing crude oil theft highlight the need for continuous reforms and stronger oversight.

The Speaker reaffirmed the National Assembly’s commitment to tackling challenges in the oil sector through legislation, oversight, and funding support.

He cited key legal frameworks such as the Petroleum Production and Distribution (Anti-Sabotage) Act and the Petroleum Industry Act (PIA), which have introduced stricter penalties for vandalism and enhanced community participation through initiatives like the Host Community Development Trust.

He explained that under the PIA, host communities risk losing benefits if vandalism occurs within their areas, thereby promoting a sense of shared responsibility in protecting oil assets.

Tajudeen added that the 10th National Assembly has intensified oversight on the implementation of the PIA, conducted investigative hearings on oil theft, and approved funding for pipeline security.

He stressed that crude oil theft should be treated not only as an economic crime but as a national security threat requiring coordinated action.

The Speaker described the roundtable as an opportunity to consolidate gains from the surveillance contract, address existing gaps, and strengthen transparency, accountability, and community engagement.

He urged stakeholders to reposition Nigeria as a reliable energy supplier in the global market.

“The world is searching for energy security, and Nigeria must present itself as a credible alternative. We cannot afford internal sabotage. Our message is clear: Nigeria is securing its assets, stabilizing production, and remains open for business,” he said.

SOURCE: Vanguard

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