Violence Plagues Oil Production in Nigeria

Akanimo Udofia pic
Akanimo Udofia
Image: desicongroup.com

As the managing director of Nigeria-based Desicon Engineering Ltd., Akanimo Udofia works extensively with several international oil companies. At Desicon Engineering, Akanimo Udofia is responsible for developing and implementing strategies to promote the organization’s growth. Due to numerous incidents of sabotage and violence, the oil and gas industry in Nigeria has suffered serious production and distribution setbacks.

Authorities have reported 58 incidents of sabotage along pipelines in Nigeria in the first 11 months of 2016. The attacks have been orchestrated by a number of militant groups who claim to be seeking their share of profits from the oil industry. In addition to these incidents, other acts of violence, including kidnappings, have occurred.

Already reeling from low global oil prices, the attacks have caused further problems for the Nigerian oil industry. First, overall production has decreased. Throughout 2016, it is estimated that over 130 million barrels have been lost. Additionally, the spillage and leaks that result from the attacks have put the fragile Niger Delta ecosystem at risk.

Nigeria’s Sweet Crude Oil

Desicon Engineering pic
Desicon Engineering
Image: desicongroup.com

The managing director of Desicon Engineering Ltd., Akanimo Udofia has over 25 years of experience in the oil and gas industry. Under Akanimo Udofia’s leadership, Nigeria-based Desicon Engineering has grown from a company of approximately 100 employees to one of over 4,000. As a country, Nigeria yields a high level of sweet crude oil.

Oil was first discovered in Nigeria in 1956 by Shell-BP at Oloibiri in the Niger Delta. Since then, petroleum export and production has become a major industry in Nigeria, accounting for over 90 percent of the country’s gross earnings.

The crude oil produced in Nigeria is described as “light” and “sweet.” These words refer to a highly desirable type of crude oil that is characterized by a sulfur content of less than 5 percent. The low sulfur content allows Nigerian crude oil to yield a large amount of high value products such as diesel, gasoline, and jet fuel.

Nigeria’s sweet crude oil is also desirable because it is safer to extract and transport. In addition, it is easier to refine, causing less damage and subsequent long-term maintenance at refineries.