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

ByPIPELINES AND PRODUCTS MARKETING COMPANY LIMITED(A Subsidiary of Nigerian National Petroleum Corporation)

OUTLINE

• History

• Fulfilling its mandate

• Ensuring product supply

• HSE Challenges

• Solutions

• Conclusion

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HISTORY

• 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

NNPC

PHRC WRPC KRPC NPDC IDSL NETCO NGC NAPIMS

PPMC

HYSON RETAIL

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PPMC LIMITED

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.

Objectives of the Company

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PPMC – FULFILLING ITS MANDATE

Mosimi

Satellite

Escravos

Benin

Ore

Ibadan

Ilorin

Abudu

CalabarPortHarcourt

Enugu

Makurdi

Yola

Maiduguri

Biu

Gombe

Jos

Kaduna

Zaria

GusauKano

Sarkin Pawa

Suleja

Abaji

Minna

Warri

Izom

Refinery

Depot

Pump Station (Stand Alone)

Atlas Cove

Lokoja

Auchi

• 5,120km PPL Network

• Cheap & Efficient means to reach market

• Tough and Rough Terrains

• Challenges of Communication

• Response Time

• Security of Response Team

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PPMC – ENSURING PRODUCT SUPPLYAtlas 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

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YearAtlas Cove – Mosimi

(No. of Vandalized Points)

2001 37

2002 27

2003 110

2004 256

2005 136

2006 366

2007 206

2008 243

2009 312

2010 258

2011 (Jan – July)

223

TOTAL 2174

Vandalism within Lagos account for 85% of the total cases on Atlas Cove – Mosimi Pipeline.

• Atlas Cove Communities• Idimu• Ijegun• Akute• Ijeododo

Arepo

VANDALISED ATLAS COVE – MOSIMI PIPELINE (2001 – 2011)

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

Year Volume (m3)Ex-Depot Price/Ltr

(Naira)Value

(Billion Naira)

2001 12,441 40.11 0.499

2002 64,966 40.11 2.606

2003 94,958 40.11 3.809

2004 270,235 40.11 10.839

2005 188,392 50.11 9.440

2006 205,847 50.11 10.315

2007 139,861 64.20 8.979

2008 152,170 60.83 9.257

2009 127,783 55.90 7.143

2010 113,437 55.90 6.341

2011(Jan – June)

32,718 55.90 1.829

Total 1,402,804 71.057 (42,509 Trucks)8

MAJOR POLLUTION/FIRE INCIDENTS

20001

20042

2006

Baruwa Community Underground Water Pollution resulting from years of vandalism involving NNPC valve pit within the community.

Abule Egba Fire Disaster as a result of vandals’ failed valve inserted on NNPC Pipeline.

Imore, Ilado and Arepo Fire Disaster resulting from vandalism of NNPC Pipeline.

The Recurring Decimal

VANDALISM

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2008Ijegun Fire Disaster resulting from punctured NNPC Pipeline from road construction by Lagos State Government and HITEC.

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2010Alagbole/Akute Spillage resulting from failed valve inserted on NNPC Pipeline by vandals

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2010/2011Idimu (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.

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PPMC – HSE CHALLENGES

Pipeline Security1

Oil Spillage & Seepage

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Fire

3

Safety/Security

4

Products Trucking

5• State of the roads• Effects on the roads

• Personnel on pipeline routine/maintenance

• Safety of Lives and Properties• Ecological damage

• Ground Water Pollution• Environmental/Ecological damage

• Vandalism• Planned Attacks• Valve Insertion

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ECONOMIC COST OF PIPELINE VANDALISMEnergy Use and GDP

Energy & Economic Growth D. Stern, 2003

Application of System Dynamics as a Policy Evaluation Tool: the Nigerian PerspectiveCredit: Timothy S. Mbasuen and Richard C. Darton11

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

Vandal’s Valve installed on NNPC Pipeline Robert Village (2010)

Vandal’s Valve – Atlas Cove (2010) Vandal’s siphon hose hidden after product theft from valve point

Robert Village

Vandalized point - Robert Village (2010)12

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

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

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WARRI – ESCRAVOS CRUDE OIL PIPELINE

KPOKPO CREEK, ALONG ESRAVOS-WARRI PPL KOKOLOGBENE

EGWA AGHALOKPE15

WARRI – ESCRAVOS CRUDE OIL PIPELINE

KPOKPO MAIN RISER. OPUEDEBUBOR

INIKOROGHA EGWA RISER WEST16

WARRI – KADUNA CRUDE OIL PIPELINE

PIC. 1, 2 & 3 ADOGO (SEPTEMBER 9, 2012)

Photo Credit: NOSDRA

IREPENI

Photo Credit: NOSDRA

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SYSTEM 2C ALONG JETTU, AUCHI, EDO STATE

WARRI – KADUNA CRUDE OIL PIPELINE

Photo Credit: NOSDRA

SYSTEM 2C PPMC PIPELINE, EKPOMA, EDO STATE18

WARRI – KADUNA CRUDE OIL PIPELINE

KM 223, Oguda (24/08/12) KM16, Gaba Village, FCT

KM 77 Kwaita Village, FCTPhoto Credit: NOSDRA

KM 77 Kwaita Village, FCT

Photo Credit: NOSDRA

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WARRI – KADUNA CRUDE OIL PIPELINE

KM 261 Osara KM 261 Osara: Over 120 Radius impacted

Oil on water – Geregu (50KM away) Oil on stream- Osara20

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

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BE WARNED!

WARNING!DISTURBING

SIGHT UNDERNEAT

H

WARRI – KADUNA CRUDE OIL PIPELINE

259 cases already recorded as at May, 201222

SOLUTIONS

Pipeline Security1

Oil Spillage & Seepage

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Fire

3

Safety/Security

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Products Trucking

5• Roadworthy Trucks• Shorter distances of travels• Tracking

• Cooperation of Security Agencies• Law Enforcement

• Reclamation of PROW• Campaign/Awareness• Prompt Response to Pipeline Incidence

• Pipeline Leak Detection Systems (PLDs)• Expedited Clean-ups to avert GW Pollution• Remediation

• Technology (Pipeline Security Systems – PSS) • Legislation• Law Enforcement

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CONCLUSION

Most Importantly, Our environment is our most

important resource.

PPMC seeks the partnership of all in its fight against

Pipeline Vandalism

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THANK YOU