Nigeria discovers illegal oil pipeline linked to export terminal after nine years

Nigerian authorities have uncovered an illegal pipeline connection from one of the country’s major oil export terminals into the sea, which had operated undetected for nine years.

The 4-kilometre connection was discovered during a recent crackdown on oil theft, according to the Group Chief Executive Officer of Nigeria’s state oil company, NNPC Ltd, Mele Kyari.

The illegal line was linked to the Forcados export terminal, which normally handles about 250,000 barrels of oil per day. Kyari described the discovery as evidence of the growing sophistication of oil theft operations in the country.

“Oil theft in the country has been going on for over 22 years, but the dimension and rate it assumed in recent times is unprecedented,” he said.

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Unlike the common practice of tapping land-based pipelines, the discovery of an underwater theft pipeline points to a more advanced operation involving organised networks.

Shell’s local subsidiary, SPDC, which operates the Forcados terminal, confirmed the discovery but said the illegal pipeline was located about 30 kilometres away from the terminal and outside its pipeline area.

Nigeria, Africa’s largest oil producer, has been struggling with widespread crude oil theft, which has significantly reduced government revenue. NNPC estimates the country is losing about 600,000 barrels of oil per day due to theft and disruptions caused by pipeline vandalism.

The impact has contributed to declining crude exports, with shipments falling below one million barrels per day in August for the first time in decades.

Operations at the Forcados terminal have remained suspended since July after a leak was detected from an underwater export hose. Shell has indicated that loading operations are expected to resume in the second half of October.

The Nigerian government has intensified efforts to combat oil theft, including awarding security contracts to private firms and companies linked to former militants to monitor and protect oil infrastructure.