• 4 minutes 5 Tweets That Change The World?
  • 7 minutes Trump Tariffs NOT China's Biggest concern. Chinese Shadow Banking Bigger. What is Shadow Banking You Ask ?
  • 11 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 15 minutes Glory to Hong Kong
  • 1 min PETROLEUM for humanity 
  • 2 hours Any difference btw Hunter Biden on BOD of Ukraine Company vs. Qatar bailout of Kushner Real Estate 666 Fifth Ave ?
  • 1 hour Total SA In Expansion: $600 million For India's Adani Gas
  • 7 mins HK. Out. Now.
  • 2 hours China's Blueprint For Global Power
  • 3 mins The Ultimate Heresy: Technology Can't Fix What's Broken
  • 3 hours Who's Afraid Of Whom? - American Politics I
  • 6 mins China 2019 - Orwell was 35 years out
  • 3 hours How The US Quietly Lost The 1st Amendment
  • 12 hours Trump will capitulate on the trade war
  • 2 hours KURDS LEFT HIGH AND DRY TO DIE?
  • 1 hour Impeachment and Foreign Conflicts in USA Politics
  • 2 hours American Politics II - The Political Implosion / America At War With Itself
  • 2 hours The world may be oversupplied with oil now, what happens when this dries up ?
Alt Text

Oil Prices Fall On Onslaught Of Bearish News

Oil prices saw their worst…

Alt Text

OPEC’s No.2 Prepares For Oil Export Boom

Iraq’s oil export capacity is…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

Niger Delta Legalizes Illicit Oil Refineries

The Nigerian government will make illicit refineries operating in the Niger Delta legal, and will even supply them with crude oil, the presidency announced yesterday. The legalization process will take until the end of the year, and the crude they will process will be sold at a reasonable price.

The move, in stark contrast with years of forceful shutdowns of illegal refineries in the poverty-ridden Delta, follows negotiations between the federal government and local community leaders that were aimed at resolving problems, including oil theft that causes spills and losses for pipeline operators as well as lack of jobs in the area.

Oil theft is how most of these mini-refineries get the crude to process, and it has been a major headache for Nigeria’s oil industry. Last month, Bloomberg’s Paul Wallace reported that according to Wood Mackenzie estimates, almost a third of the crude that flows along pipelines in the Delta ends up in the hands of thieves—thieves who often cause pipeline leaks like the one that led to the closure of the 60,000-bpd Agbada flow station in June.

The oil theft problem is not new and Abuja and oil field operators have tried different approaches to solving it. Operators, including Shell, are using surveillance helicopters, drones, and wellhead cages, Wallace reports, but according to industry sources, nothing seems to be doing the trick. Related: Qatar Dispute Back To Square One

The idea of legalizing the refineries was conceived relatively recently as an alternative to all these failed approaches. The legalization will in fact involve replacing the illicit facilities with modular refineries, two per Delta state to begin with, in the next quarter. That’s what Acting President Yemi Osinbajo told media after a meeting with community leaders.

Settling the matter with the refineries is essential for achieving some form of lasting peace with militant groups active in the Delta, who claim that their action are motivated by the unfair distribution of Nigeria’s oil wealth at the expense of Delta communities.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play