Security weighs on Nigeria oil industry

Piracy, oil theft still major industry issues.

Offshore security threats weighing on Nigeria’s oil industry

Author: FEMI ASU

Boasting huge hydrocarbons resources yet to be exploited, Nigerian offshore domain is fraught with increasing threats, casting a shadow on players’ operations and the country’s potential to attract investment into its vital oil and gas industry.

Nigeria’s offshore domain is one of the most fertile hydrocarbon provinces in the world. Current oil reserve in the country estimated at 35 billion barrels and over 187 trillion cubic feet of natural gas reserves.

The threats to offshore assets in the country include piracy, sea robbery, oil theft, illegal bunkering, smuggling, proliferation of small arms, among others.

Since pirates attack drilling rigs, some major international oil companies operating in the country have suspended their activities and many have moved deeper offshore, where the risks are very minimal.

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Source: businessdayonline.com