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31
August
2022

FG to implement Saudi Aramco’s security infrastructure for oil pipelines to curb crude oil theft

Nigeria is implementing a security infrastructure similar to that of Saudi’s Aramco to protect its oil pipelines, according to the head of the nation’s state-owned energy company.

The new security architecture will be unveiled soon and will help stop massive oil pipeline vandalism that has resulted in the country losing 30% of produced volumes to crude thieves, Mele Kyari, the chief executive officer of the Nigerian National Petroleum Company, said on Tuesday in Abuja, the nation’s capital.

Africa’s biggest oil producer has been unable to meet its OPEC quota since the beginning of this year due to rampant theft and vandalism. Output fell to 1.43 million barrels a day in the three months through June, the lowest quarterly production since 2016, according to the nation’s statistics agency.

Output fell to 1.43 million barrels a day in the three months through June, the lowest quarterly production since 2016, according to the nation’s statistics agency. This was the third consecutive quarter of oil production decline in Nigeria and the country is no longer able to meet its OPEC quota.

With oil production lagging, Nigeria is dealing with a huge dilemma of higher spending amidst declining revenues and a debilitating debt crisis at a time when it cannot raise taxes because of tepid economy growth

Some others are taking to sending their crude oil via expensive barges that have become a logistic nightmare in the Niger Delta.

A huge portion of the crude oil put through the extensive but now leaky pipeline network is stolen according to some estimates by the government

The new security architecture will be unveiled soon and will help stop massive oil pipeline vandalism that has resulted in the country losing 30% of produced volumes to crude thieves, Mele Kyari, the chief executive officer of the Nigerian National Petroleum Company, said on Tuesday in Abuja, the nation’s capital.

 

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