Nigeria Locates Safe Routes For Oil Companies to Securely Transport Crude Oil to Avoid Theft

Nigeria Locates Safe Routes For Oil Companies to Securely Transport Crude Oil to Avoid Theft

  • Oil companies operating in Nigeria can now have a safe transportation route for their crude oil in the country
  • The launch of the new Amukpe-Escravos Pipeline in the country will serve as a safe route for the oil firms to move crude oil
  • This follows the vandalisation of the 180,000 barrels Trans-Niger pipeline by oil thieves causing oil majors to abandon the facility

The launch of the new Amukpe-Escravos Pipeline in Nigeria will provide a safe route for oil companies operating in Nigeria to securely transport crude oil.

The new crude oil transportation choice will greatly decrease incidents of oil theft which has affected the revenues of many oil companies in Nigeria and the country’s economy.

Oil Pipeline, Trans-Niger
Oil companies get new pipelines Credit: Hoptocopter
Source: Getty Images

New pipeline ready to begin operation

According to Business Insider, the new pipeline has a capacity to move 160,000 barrels of crude oil per day and the 67-kilometre-long pipeline is mostly underground, which hides it away from the prying eyes of oil thieves and pipeline vandals.

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It is noteworthy that the dewatering process for the new pipeline will be finished on Friday, August 5. Site Acceptance Test is currently being conducted with the movement of commercial-quantity crude volumes.

Some top players in the oil industry in Nigeria have begun leveraging the new pipeline, one of which is Seplat Energy.

The Nigerian-based major oil company which is listed on the floor of the Nigerian Exchange and the London Stock Exchange stated that it has started commercial transportation of crude oil via the Amukpe-Escravos Pipeline.

Seplat happy over new pipeline

Seplat Energy’s CEO, Roger Brown stated how the development would aid the firm and guarantee a better delivery for stakeholders.

Brown said that the commercial launch of the pipeline is very important for the company in Nigeria as it offers more safe export routes which will guarantee higher revenues and profit-making for the company and enable the company to make a larger contribution to the country’s economy.

Seplat and other top oil firms in Nigeria had relied on the Trans-Niger pipeline to move their crude products. The pipeline was attacked recently, causing oil companies to abandon it.

It has been difficult for oil firms in Nigeria to move products due to oil thefts which is the main reason Nigeria has failed to meet its daily OPEC quota of 1.77 million barrels of crude oil export.

The severity of the problem caused major companies to receive just 5 per cent of all crude volumes between October 2021 and February 2022 which were transported via the Trans-Niger pipeline.

Nigeria’s revenue suffers blow as 180,000 pipeline ceases to function due to oil theft

Recall that reported that Nigeria’s economy received a further blow recently as an oil pipeline with the capacity to move 180,000 barrels of crude daily across Nigeria was hit by oil thieves, forcing it to halt the transportation of oil since June.

This further worsens the various incidents of crude oil theft which have become a challenge in the upstream sector, which stakeholders see as organised.

Bloomberg quoted an insider who is familiar with the issue as saying that the Trans-Niger pipeline has not been officially closed with the communication bandwidth which is about 15 per cent of the country’s average daily output.


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