Pipeline Vandalism: FG Considering Crude Oil Transport by Trucks

Destiny Michael
By Destiny Michael 3 Min Read
Photo of a vandalised pipeline

Photo of a vandalised pipeline

Pipeline Vandalism: FG Considering Crude Oil Transport by Trucks

Pipeline Vandalism: FG Considering Crude Oil Transport by Trucks. The Federal Government has introduced a virtual method for transporting crude oil, involving the use of barges and trucks to move crude from production sites to storage points for eventual shipment to export terminals.

This initiative, known as the Alternative Crude Oil Evacuation Systems, aims to prevent production delays, losses, and other negative impacts caused by pipeline disruptions and outages.

A presentation by the Nigerian Upstream Petroleum Regulatory Commission titled “Stability in the Nigerian Energy Sector: Integrated Strategies for Infrastructure, Transportation, and Security” provides details on this approach.

Nigeria suffers significant financial losses due to crude oil theft and pipeline vandalism every year, prompting the government to explore virtual transportation methods for the commodity.

In October 2023, the Senate initiated a comprehensive investigation into crude oil theft, prompted by a motion from Senator Ned Nwoko (PDP, Delta North), who highlighted the substantial losses incurred by Nigeria to oil theft.

To address this issue, the NUPRC emphasizes the need to promote the Alternative Crude Oil Evacuation Systems, which involve transporting crude oil via trucks and barges instead of pipelines.

The Commission, in collaboration with industry stakeholders, is committed to implementing initiatives and measures to combat vandalism and oil theft, including increased surveillance and security deployment.

Pipeline Vandalism: FG Considering Crude Oil Transport by Trucks

The ACOES offers a flexible and cost-effective solution for transporting crude oil, particularly for new entrants into the industry during Extended Well Test and early production phases.

By establishing regulatory requirements, documentation processes, and coordination with security agencies, the NUPRC ensures safe and secure operations of barging and trucking in the upstream oil and gas sector.

The effectiveness of the alternative evacuation systems is evident, with significant reductions in production losses and increased crude oil exports recorded.

Ukadike Chinedu, the National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, lauds the government’s efforts to combat oil theft and emphasizes the importance of safeguarding Nigeria’s crude oil revenue.

He emphasizes the need for continued measures to address oil theft, considering its significant impact on Nigeria’s economy and foreign exchange earnings.

READ MORE:

Share This Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *