Nigeria is owing the Nigerian National Petroleum Company Limited (NNPCL) N1.3 trillion, the Chief Executive Officer (CEO) of the company, Mele Kyari, told a joint committee of the National Assembly yesterday.

Kyari also lamented the effect of massive oil theft and pipeline vandalism with attendant low production on the economy.

The NNPCL boss spoke at the Senate’s Joint committee on Petroleum (Downstream), Petroleum (Upstream) and Gas in Abuja.

On NNPCL’s non-remittance to the federation account since January, Kyari told the committee members that the company is not indebted to Nigeria; rather the country owes the firm N1.3 trillion.

He agreed with s suggestion by Chairman Senate Committee on Petroleum (Upstream) Senator Albert Bassey Akpan, that oil thieves should face capital punishment.

He noted that oil theft in the country has been going on for over 22 years “but the dimension and rate it assumed in recent times is unprecedented.”

Kyari said: “As a result of oil theft, Nigeria loses about 600,000 barrels per day, which is not healthy for the nation’s economy and in particular the legal operators in the field which had led to a close down of some of their operational facilities.

“But in rising to the highly disturbing challenge, NNPCL has in recent times in collaboration with relevant security agencies, clamped down on the economic saboteurs.

“In the course of the clamp down within the last six weeks, 395 illegal refineries have been deactivated, 274 reservoirs destroyed, 1, 561 metal tanks destroyed, 49 trucks seized and the most striking of all is the four-kilometre illegal oil connection line from Forcados Terminal into the sea which had been in operation undetected for nine solid years.”

Kyari told members of the committee that in addressing the menace, NNPCL carried out aerial surveillance of the affected areas and saw the economic saboteurs carrying out their activities “unchallenged and unperturbed.”

The problem at hand, he said, “is not only security but social as locals in most areas where the illegal refiners operate, unknowingly serve as their employees by mistaking them for operatives of licensed companies for oil exploration and production in the area.”

He added that being a problem requiring an urgent solution, the Cambodia and Mexico models of involvement of non-state actors were being adopted by NNPCL with the involvement of three private security companies.

According to him, “It is not abnormal to involve non-state actors for protection of oil pipelines and other critical infrastructure as done in Cambodia and Mexico which produced desired results.”

Chairman of the joint committee, Senator Mohammed Sabo Nakudu (APC-Jigawa Southwest), told the NNPCL boss to prepare for oversight functions on Port Harcourt and Warri Refineries claimed to have been rehabilitated.

All members of the three committees attended the interactive session which lasted for about four hours.