Transporting Crude By Barges Raises Operational Costs – Stakeholders

Industry operators and analysts person revealed that transporting crude lipid by barges importantly raises accumulation costs and delays transportation timelines compared to pipeline transportation.

This displacement successful proscription method has emerged mostly arsenic a effect to challenges specified arsenic pipeline vandalism, prompting stakeholders to research alternate options contempt their drawbacks.

Recall that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said it had successfully reduced crude lipid theft by astir 90 per cent since its constitution successful 2021,dropping from a staggering 102,900 barrels per time successful 2021 to 9,600 barrels per time successful 2025, a feat credited to the instauration of innovative metering audits and integer tracking systems. The NUPRC said this advancement reflects palmy associated efforts involving the commission, the Office of the National Security Adviser, the military, lipid operators, and different applicable parties utilizing some kinetic and non-kinetic approaches.

According to the Commission’s main executive, Engr. Gbenga Komolafe, these advances stem from President Bola Ahmed Tinubu’s directive to destruct lipid losses utilizing some kinetic and non-kinetic approaches.

He besides said the Advanced Cargo Declaration Regulation, which digitally tracks each tube of crude loaded onto tankers successful existent time, close done to the constituent of discharge, has aided successful reducing crude lipid losses. The strategy is designed to instantly emblem discrepancies, specified arsenic a tanker discharging cruder than legally loaded.

Despite these assertions, lipid manufacture operators and analysts judge that the main crushed for the driblet successful lipid theft successful the Niger Delta is companies’ usage of barges to transport oil, frankincense bypassing the pipelines. They support that incessant attacks person compromised the integrity of the pipelines.

Speaking exclusively with LEADERSHIP, the managing manager of Deepshores Energy Limited, Nneka Zainabu Obi, said that barge transport inevitably increases operational expenses.

“Instead of simply connecting to a pipeline and sending crude done to a centralised constituent for sale, operators indispensable prosecute barges, which introduces further costs including manpower expenses,” she explained.

Obi added that the process of moving crude by barge is longer and slower, with ratio straight influenced by the measurement of crude being transported.

Beyond outgo and velocity issues, Obi pointed retired regulatory hurdles surrounding  barge usage.

Since transporting crude by barge is not a modular manufacture practice, operators are required to get other approvals from regulatory bodies, which complicates and lengthens the process further.

Regarding the relation of barge proscription successful the broader proviso chain, Obi warned against viewing it arsenic a semipermanent strategical solution. “It tin ne'er beryllium a strategical semipermanent option; pipelines stay the amended and much businesslike mode of crude transfer.

The existent reliance connected barges is chiefly owed to pipeline vandalism causing important losses,” she stated. Obi stressed that this method should beryllium considered lone arsenic a impermanent workaround portion pipeline issues are addressed.

On the taxable of pipeline vandalism, Obi urged the authorities and lipid producers to prosecute straight with the communities liable for the disruptions. She recommended a concern attack to conscionable assemblage needs successful a mode that benefits some the section colonisation and the industry. “If the authorities makes promises to these communities, it indispensable honour them to debar breeding choler and mistrust,” she said.

Following specified engagement, Obi advised that pipelines should beryllium restored to optimal information and maintained regularly to forestall further damage., Obi besides expressed concerns astir the wide consistency and reliability of crude transportation via barges. The dependence connected hired manpower and further resources creates variability successful proviso concatenation efficiency. “Unless operators put successful owning their ain barges, transportation volition acquisition predominant ups and downs, starring to mediocre lawsuit experience,” she warned.

Contrastingly, Ademola Henry Adigun, an experienced lipid argumentation adept who has supported Nigeria’s lipid reforms since 2011, considers barge proscription the astir viable alternate nether existent circumstances. He noted that the displacement to barges began astir 3 years agone arsenic pipeline vandalism surged. While acknowledging the accrued costs borne by operators, Adigun emphasised that barge transport helps support the lipid manufacture operational and offers improved ratio successful the lack of reliable pipeline infrastructure.The statement underscores the captious request for sustainable solutions successful Nigeria’s crude lipid transport logistics. While barges supply a indispensable stopgap amid pipeline disruptions, restoring and maintaining pipeli...