• 9 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes The EU Loses The Principles On Which It Was Built
  • 19 minutes Batteries Could Be a Small Dotcom-Style Bubble
  • 3 hours Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 1 hour Saudi Fund Wants to Take Tesla Private?
  • 1 hour Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 4 hours CO2 Emissions Hit 67-Year Low In USA, As Rest-Of-World Rises
  • 14 hours How To Explain 'Truth Isn't Truth' Comment of Rudy Giuliani?
  • 12 hours Starvation, horror in Venezuela
  • 5 hours Saudi PIF In Talks To Invest In Tesla Rival Lucid
  • 10 hours Corporations Are Buying More Renewables Than Ever
  • 16 hours China still to keep Iran oil flowing amid U.S. sanctions
  • 15 hours Are Trump's steel tariffs working? Seems they are!
  • 16 hours Is NAFTA dead? Or near breakthrough?
  • 7 hours Film on Venezuela's staggering collapse
  • 3 hours China goes against US natural gas
Alt Text

Libyan Oil Recovers, Exceeds 1 Million Bpd

Libya’s oil output has once…

Alt Text

Why Saudi Oil Production Suddenly Dropped

Oil prices jumped on Monday…

Alt Text

Why Is Big Oil So Excited About Alaskan Crude?

Alaskan officials have just published…

Irina Slav

Irina Slav

Irina is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing on the oil and gas industry.

More Info

Trending Discussions

Niger Delta Legalizes Illicit Oil Refineries

Oil

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:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News