Nigeria’s oil industry faces a critical challenge as its crude pipelines, many of which were constructed in the 1960s and 1970s, have reached the end of their lifespan, making them highly susceptible to theft and vandalism. This alarming situation was highlighted by the Minister of State for Petroleum Resources, Heineken Lokpobiri, during the 2024 Energy and Labour Summit in Abuja......See Full Story>>.....See Full Story>>
“The pipelines that were traditionally transporting our crude were built in the 1960s and the 1970s, and their lifespan is over,” Lokpobiri stated.
He explained that the aging and corroded infrastructure is a major factor contributing to the ease with which oil theft occurs. “The reason why pipeline vandalism is very easy to do is because the pipelines have all expired; they are completely corroded,” he added.
Lokpobiri emphasized that the deteriorating state of the pipelines poses a significant hurdle to Nigeria’s efforts to ramp up crude oil production.
Even if the country increases production to over 1.7 million barrels per day, the Minister noted that evacuating the oil to terminals remains a major challenge due to the poor condition of the pipelines.
Highlighting the financial constraints, Lokpobiri pointed out that the Nigerian National Petroleum Company Limited (NNPCL) lacks the funds to replace the outdated pipelines. “NNPC will speak for themselves whether they have the money to be able to do that, and I don’t think they have,” he remarked.
The Minister called for urgent action, proposing a public-private partnership (PPP) model to address the infrastructure issues. “That is why we have to go for the global model – PPP. We have to get the private sector to come in,” he said, stressing that the involvement of private investors is crucial for rebuilding the nation’s oil transportation network.
Lokpobiri’s remarks underscore the gravity of the situation and the urgent need for Nigeria to modernize its oil infrastructure to combat theft and ensure the efficient evacuation of crude. Without addressing these challenges, the country may continue to struggle with both oil theft and the broader goal of increasing its oil production capacity.