Securing Nigeria’s black gold

As one of the largest oil producers in Africa, Nigeria’s economy heavily relies on its petroleum sector. As of 2023 statistics, the oil industry contributes over 6.33 per cent to the country’s GDP and over 90 per cent to foreign earnings (Statista, 2023). Nigeria was the largest producer of crude oil in Africa until March 2024 when Libya took over (African Energy Council, April 2024.)

So, what happened? Did the oil production decrease, not really. Oil theft is the primary reason for this and has become a significant and troubling issue in Nigeria, renowned for its vast oil reserves.

Oil is usually stolen from pipelines by attaching an illicit spur pipeline or stolen by under-pressure drilling also known as Hot tap. Under-pressure drilling is a more complex procedure and detecting under-pressure drilling is a significant challenge, but advancements in technology can help mitigate this issue.

This critical industry faces persistent challenges, with oil theft emerging as a major concern that undermines economic stability and environmental safety. Around 620 million barrels of oil were stolen between 2009 to 2020, which cost about $46 Billion.

Addressing this issue requires a versatile approach to provide strategies for effective prevention and mitigation involving cooperation between the government, private sector, local communities, and international partners. Technology is another weapon that can play a significant role in improving enhanced monitoring, leak detection, advanced security and response capabilities.
Here’s how various technologies can be utilised to combat petroleum theft:

Advanced Leak Detection Systems
Fiber optic sensors: These sensors can detect pressure changes, vibrations, and temperature fluctuations along the pipeline. They can pinpoint the exact location of a leak or illegal tapping.  Fiber optic cables can be installed along the pipeline or buried near it. The specific method depends on factors such as pipeline type, terrain, and environmental conditions.

Acoustic leak detection: This technology uses microphones to detect the sound of escaping fluid. It can be particularly effective in identifying leaks in underwater pipelines

Microphones can be installed during pipeline construction or retrofitted onto existing pipelines. The placement of microphones depends on factors such as pipeline depth, terrain, and ambient noise levels. Specialised software is used to analyse the microphone data and identify potential leaks.

Surveillance with drones and satellite imagery
Remote sensing and satellite imagery: Satellites provide real-time images and data on pipeline infrastructure, helping to detect unauthorised activities or physical damage. High-resolution imagery can be used to spot tampering or leaks.

Drones: Drones equipped with cameras and thermal sensors can patrol pipeline routes and oil facilities, providing aerial surveillance and real-time footage. They can quickly cover large areas and identify suspicious activities. Using these also eliminates any local limited security personnel getting hurt by bad guys before the force arrives.

Real-time data and analytics
Big Data Analytics: By analysing large datasets from various sources (e.g., sensors, satellite imagery, historical data,) companies can identify trends and sensitive areas or areas prone to thefts and predict potential theft incidents before they occur.