• Oil & Gas - News
  • Updated: April 01, 2024

Oil theft: FG adopts virtual crude oil evacuation system

Oil theft: FG adopts virtual crude oil evacuation system

The Nigerian government has introduced a virtual method of evacuating crude oil to address rampant theft and vandalism in the nation's oil industry.

The Alternative Crude Oil Evacuation Systems (ACOES) utilize barges and trucks for transporting crude oil from production points to injection/storage locations and export terminals.

This initiative follows reports of trillions of naira lost annually to crude oil theft and pipeline vandalism. Senator Ned Nwoko revealed Nigeria lost N2.3 trillion to oil theft in 2023 alone, prompting a Senate probe into security forces and organized groups involved in illicit activities.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) emphasizes promoting ACOES to prevent production deferment and revenue losses.

Through increased surveillance and security deployments, the government aims to safeguard oil and gas infrastructure from criminal syndicates targeting illegal oil sales.

The ACOES provides a flexible and cost-effective transportation system for new entrants in the industry during Extended Well Test and early production phases.

The NUPRC ensures safe and secure operations of barges and trucks through stringent regulatory requirements and collaboration with security agencies.

Chief Ukadike Chinedu of the Independent Petroleum Marketers Association of Nigeria applauds the government's efforts to combat oil theft, emphasizing the significance of preserving Nigeria's crude oil earnings.

As Nigeria relies on crude oil exports for foreign exchange, measures like the ACOES play a vital role in safeguarding national revenues and industry integrity.

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