FG to Consider Trucking Crude Oil Over Pipeline Vandalism

Vandalised Pipeline
Vandalised Pipelinegoogle

The Federal Government has commenced using barges and trucks to move crude oil from production points to storage areas to deal with pipeline disruptions and losses. This new system, known as Alternative Crude Oil Evacuation Systems is expected to prevent production delays and revenue loss caused by theft and pipeline damages.

According to a presentation by the Nigerian Upstream Petroleum Regulatory Commission, Nigeria suffers high financial losses annually due to crude oil theft and vandalism, prompting the adoption of virtual transportation methods.

In response to a Senate directive in October 2023, an investigation was launched into oil theft activities, revealing staggering losses amounting to trillions of naira. Senator Ned Nwoko highlighted Nigeria's loss of N2.3 trillion to oil theft in 2023 alone.

To combat this, the government has embraced Alternative Crude Oil Evacuation Systems, prioritizing the use of trucks and barges for oil transportation instead of vulnerable pipelines. This initiative, backed by increased surveillance and collaboration with stakeholders, aims to safeguard oil and gas infrastructure from criminal activities.

The commission emphasized the importance of implementing Alternative Crude Oil Evacuation Systems to mitigate production losses, reduce operational costs, and address environmental concerns associated with oil theft and vandalism.

This virtual transportation method provides flexibility and cost-effectiveness, particularly for new entrants in the industry, by offering temporary solutions for crude oil evacuation until permanent infrastructure is established.

The Nigerian Upstream Petroleum Regulatory Commission also highlighted the success of the alternative evacuation systems, citing significant reductions in production losses and increased crude oil exports through secure transportation channels.

Chief Ukadike Chinedu, the National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, commended the government's efforts to combat oil theft, emphasizing the importance of preserving Nigeria's crude oil revenue through effective measures.

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