On Thursday, the federal government held a workshop to develop a framework for offering oil product pipeline concessions to private investors to address continued asset destruction.
Pipelines across the country are fully owned by the federal government and have been repeatedly attacked by vandals, a development that has significantly reduced the country’s crude production.
As part of measures to address the issue, the government said on Thursday it would cede all assets to private investors, believing investors would better manage the pipeline.
This was revealed by the Permanent Secretary of the Federal Ministry of Petroleum Resources, Gabriel Aduda, during a workshop on the topic “Development of a Framework for Concession of Oil and Gas Assets in Nigeria”.
“There are some challenges. We’ve been talking about vandalism. But if the private sector steps in, maybe they can protect their own pipelines, not something the government does on its own,” he said.
Aduda, represented by Felix Okeke, FMPR’s midstream director, added: “We are therefore looking at involving the private sector.
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