UNDC Advocates for Extension of PINL Contract Amid Oil Production Improvements

The United Niger Delta Congress (UNDC) has called on the federal government to extend the contract of Pipeline Infrastructure Nigeria Limited (PINL) for pipeline surveillance, citing significant advancements in oil production and infrastructure security in the Niger Delta region. The UNDC's appeal comes on the heels of a report from the House of Representatives Committee on Host Communities, which found no merit in allegations made against PINL and its managing director, Osahon Okunbo.

The UNDC emphasized that the positive performance of PINL, alongside its investments in local communities, warrants the continuation of the current contract. They argue that maintaining this partnership is crucial for sustaining recent gains in crude oil production and safeguarding jobs in the area.

According to the UNDC, the technical subcommittee's investigation concluded that the claims against PINL were unfounded, recommending the dismissal of the petition and the extension of the company's contract. The group highlighted that since PINL began operations in August 2022, crude oil deliveries through the Trans Niger Pipeline have surged from a mere three percent to an impressive 98 percent by September 2026.

The resumption of operations at Oil Mining Lease 11, which had been inactive for 18 months, was also noted as a significant achievement within just 90 days of PINL's engagement. The UNDC reported that the company has successfully remediated over 2,049 illegal pipeline connections and dismantled 1,010 illegal refinery clusters while conducting surveillance across 215 host communities.

Beyond its role in infrastructure protection, PINL has created substantial employment opportunities, hiring more than 35,600 surveillance guards from local communities. This initiative has provided a vital source of income for residents, offering alternatives to illegal oil-related activities.

The UNDC pointed out that PINL operates 28 forward bases, 130 boats, 175 vehicles, and 25 drones to enhance surveillance efforts across the region's waterways and creeks. Additionally, the company has awarded over 5,000 scholarships to children from host communities and provided skills training to more than 4,000 women and girls. Their support has also extended to flood relief efforts in over ten communities in Rivers State.

These interventions illustrate how pipeline surveillance can extend beyond mere security measures to foster economic development and support livelihoods in oil-producing regions. The UNDC warns that any disruption in the contract could jeopardize the workforce and community relationships established since PINL's involvement, potentially undermining existing pipeline protection measures in the Eastern corridor.

The organization reiterated that extending PINL's contract would not only preserve these gains but also bolster investor confidence by demonstrating that operational performance influences government contracting decisions. They urged the federal government to heed the recommendations from the subcommittee and continue efforts to enhance crude oil production, protect vital infrastructure, and expand economic opportunities for host communities.

As the UNDC advocates for the extension of PINL's contract, the future of oil production and community development in the Niger Delta hangs in the balance, underscoring the importance of effective governance and strategic partnerships in the region's oil and gas sector.