Fighting Oil Theft: Nigeria Implements Innovative Crude Oil Evacuation Methods

The Federal Government has implemented a virtual means of crude oil evacuation, utilizing barges and trucks for transportation from production points to injection/storage points, and eventually to export terminals.

This Alternative Crude Oil Evacuation Systems aims to prevent production deferment, losses, and other adverse effects caused by pipeline disruptions and outages.

The Nigerian Upstream Petroleum Regulatory Commission highlighted these initiatives in a presentation titled “Stability in the Nigerian Energy Sector: Integrated Strategies for Infrastructure, Transportation, and Security.”

This move comes in response to Nigeria’s significant losses due to crude oil theft and pipeline vandalism, which amount to trillions of naira annually.

In October 2023, the Senate initiated a comprehensive probe into these activities, prompted by a motion from Senator Ned Nwoko, who cited data showing Nigeria’s substantial losses to oil theft.

To combat this issue, the government has promoted the Alternative Crude Oil Evacuation Systems, facilitating transportation via trucks and barges instead of pipelines.

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The NUPRC emphasized collaboration with industry stakeholders to implement targeted initiatives and combat vandalism and oil theft.

Increased surveillance and deployment of security forces aim to enhance protection of oil and gas infrastructure from criminal syndicates.

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The ACOES provides a flexible and cost-effective transportation system, particularly beneficial for new entrants into the industry during Extended Well Test and early production phases.

Regulatory requirements, permitting processes, and coordination with security agencies ensure safe and secure operations.

The effectiveness of these measures is evident, with significant crude oil volumes evacuated and exported through the system, contributing to revenue generation and protecting Nigeria’s global competitiveness.

The National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria praised the government’s efforts, acknowledging the importance of addressing oil theft to safeguard Nigeria’s earnings from crude oil sales.