News July 30, 2011 at 12:00 am

Nigerian Firm Acquires Drilling Rig for Oil, Making it Harder for Rebels to Sabotage

Adanna Uwazurike July 30, 2011 at 12:00 am

July 30, 2011 at 12:00 am | News

A Nigerian firm, Fenog, said Tuesday that it has acquired a drilling rig that will make it difficult for oil thieves and vandals to sabotage oil and gas pipelines in the oil-rich country.

With this new technology the firm is poised to collaborate with the federal government to ensure a more efficient, refined and unrefined products distribution and indeed, try to put an end to the worrisome pipeline vandalism.

The firm stated that the equipment, estimated at around 15 million dollars, was imported from Germany and was in line with a recent policy by President Goodluck to encourage greater participation of local firms in the country's multi-billion-dollar oil and gas industry.

This issue stems from the stealing of crude oil from the oil-rich Niger Delta by armed gangs, pirates and their foreign collaborators, which costs Nigeria millions of dollars in lost revenue every year. Because much of the revenue Nigeria receives comes from oil, stealing it can become a lucrative business. However, the steps taken by Fenog can set the example for similar companies who are looking to combat the issue.

 

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