Crude Supply to Refineries By Marine Vessels Increases Cost
Nigerian Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, has explained that the option of transporting crude oil to the refineries by marine vessels due to vandalism of pipelines has increased the cost of refining the product by $7 per barrel.
This is coming as the Chief Executive Officer of Seplat Petroleum Development Company Plc, Mr. Austin Avuru, has raised concern on the high rate of alarm being raised by some operators over crude oil theft.
Speaking yesterday in Lagos at the 38th Annual International Conference and Exhibition of the Society of Petroleum Engineers (SPE), Alison-Madueke described theft-related vandalism as the most prominent challenge that is negatively impacting Nigeria’s oil industry.
She said due to vandalism, crude oil supply to the refineries through pipelines had been affected, resulting to the option of crude transportation by marine vessels, thereby increasing the operating cost of refining by additional $7 per barrel.