The Federal Government has implemented a virtual method of evacuating crude oil, utilizing barges and trucks for transporting crude from production sites to injection/storage points.
This facilitates eventual transportation to export terminals.
It said the Alternative Crude Oil Evacuation Systems was implemented to avoid production deferment, losses and other undesirable consequences as a result of pipeline disruption and outages.
This is contained in a new presentation by the Nigerian Upstream Petroleum Regulatory Commission on “Stability in the Nigerian Energy Sector: Integrated Strategies for Infrastructure, Transportation and Security,” obtained by our correspondent in Abuja on Sunday.
Nigeria loses trillions of naira to crude oil theft and pipeline vandalism annually, a development that made the government consider virtual means of transporting the commodity.
“In March 2023, Nigeria incurred a substantial loss of 65.7 million barrels of crude oil, valued at $83 per barrel, translating to a staggering revenue loss of N2.3tn as a result of oil theft,” senator Ned Nwoko said.
To tackle this, the NUPRC said the government had to promote the Alternative Crude Oil Evacuation Systems by transporting the commodity through trucks and barges instead of pumping them through pipelines.
It stated that through collaboration with industry stakeholders, the Nigerian Upstream Petroleum Regulatory Commission had sustained its commitment in implementing targeted initiatives and various measures to combat vandalism and crude oil theft.
It said, “Through increased surveillance and deployment of security forces, the upstream industry has in recent times increasingly enhanced the protection of oil and gas infrastructure from criminal syndicates who often target oil and gas installations to siphon off crude oil for illegal sale.
“The activities of the syndicates has led to revenue losses for the government, oil companies and other stakeholders, increased cost of production, as well as far-reaching environmental consequences and demarketing of the nation’s global competitiveness.
“The commission has therefore promoted the implementation of Alternative Crude Oil Evacuation Systems to avoid production deferment and losses and other undesirable consequences as a result of pipeline disruption and outages.
“This virtual means of evacuation mainly involves the utilisation of barges and trucks for the transportation of crude oil from the point of production to injection/storage points
