The Federal Government has implemented a virtual method of evacuating crude oil, utilizing barges and trucks for transportation from production sites to storage points before ultimately heading to export terminals. This Alternative Crude Oil Evacuation Systems initiative aims to avoid production deferment and losses caused by pipeline disruptions and outages. The details were outlined in a recent presentation by the Nigerian Upstream Petroleum Regulatory Commission titled “Stability in the Nigerian Energy Sector: Integrated Strategies for Infrastructure, Transportation, and Security.”
Nigeria suffers significant financial losses annually from crude oil theft and pipeline sabotage, prompting the government to explore virtual transportation methods for the commodity. In response to escalating concerns, the Senate launched a comprehensive investigation into security forces and organized groups involved in sophisticated schemes to pilfer oil.
Senator Ned Nwoko highlighted the alarming statistics of Nigeria losing billions to oil theft, with 2023 alone seeing a loss of N2.3 trillion. To combat these challenges, the government, in collaboration with industry stakeholders, has promoted the use of Alternative Crude Oil Evacuation Systems, emphasizing transport via trucks and barges over traditional pipeline methods.
The Nigerian Upstream Petroleum Regulatory Commission emphasized enhanced surveillance efforts, security force deployments, and collaborative initiatives to safeguard oil and gas assets from criminal activities. By implementing Alternative Crude Oil Evacuation Systems, the commission seeks to mitigate revenue losses, production disruptions, and environmental damage associated with oil theft incidents.
Recognizing the success of the Alternative Crude Oil Evacuation Systems, Chief Ukadike Chinedu, National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, lauded the government’s proactive measures in addressing oil theft. He stressed the crucial role of safeguarding Nigeria’s crude oil earnings and urged continued efforts to combat illegal activities in the industry.
