Nigerian Oil Pipeline Law Is Called a ‘Time Bomb’ for Communities
- Clause deducts cost of damage caused by theft and sabotage
- Nigeria lost 31 million barrels of oil from pipelines in 2019
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Nigerian legislation overhauling the oil and gas industry could cause conflict in crude-producing communities that fear footing the bill for breakages to pipelines.
President Muhammadu Buhari signed the so-called Petroleum Industry Act into law in August. The long-awaited reforms that were almost two decades in the making compel producers to set aside the equivalent of 3% of the previous year’s operating expenditure for the development of the areas in the Niger Delta region that host their operations.