A pipeline in Nigeria has stopped transporting oil because of mass theft

A pipeline in Nigeria has stopped transporting oil because of mass theft
A pipeline in Nigeria has stopped transporting oil because of mass theft

Every part of Nigerian society is complicit in the theft of millions of barrels, the head of state oil company NNPC Ltd said on Tuesday, adding that makeshift pipelines and stolen fuel were even found in churches and mosques.

Large-scale thefts from the country’s pipelines have stifled exports, forced some companies to halt production and paralyzed the country’s finances, Reuters reports.

A pipeline capable of carrying 180,000 barrels a day through Nigeria has stopped transporting crude oil since mid-June due to theft, according to a Bloomberg source.

Nigeria – Africa’s largest oil producer and a member of the Organization of the Petroleum Exporting Countries – has sought to eliminate sabotage of its pipeline network in recent years. Oil theft remains a chronic problem for the transportation system known as the TNP.

Producers received just 5% of the volumes of crude pumped through the pipeline between October 2021 and February, an industry union reported earlier this year. This reflects a larger problem for Nigeria, which is facing shrinking investment and is failing to meet its OPEC+ oil production quota to take advantage of the surge in prices.

TNP has been illegally drilled in about 150 locations, the Nigerian Petroleum and Natural Gas Association of Senior Personnel said in March when the local government inspected some of the areas where the theft took place.

Nigeria is putting in place a security infrastructure similar to that of Saudi Aramco to protect its oil pipelines. The new security architecture will be unveiled soon and will help stop the rampant vandalism of oil pipelines that has led to the loss of 30 percent of the country’s produced volumes to crude oil thieves, Chiari said.

Although oil still accounts for more than 80% of Nigeria’s export earnings, its contribution to Africa’s largest economy is declining. Nigeria is among the countries with the highest number of people living in extreme poverty, increasing pressure on the government to turn around the industry, which is also suffering from political uncertainty.

Read more on the subject in bloombergtv.bg

Photo: Bloomberg.com

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Tags: pipeline Nigeria stopped transporting oil mass theft

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