OIL AND GAS 2.1A PIPELINES (INTRODUCTION)
Oil in situ is worthless and needs to get to the final consumers. After oil is extracted, it needs to be transported to where it can be refined afterwhich it is transported to the market where it can be sold.
Oil can be transported through vessels, ships, tankers or pipelines.
Pipelines are becoming increasingly popular in the transportation of Oil as they can transport more at a faster and cheaper rate.
Section 11(2) of the Oil Pipelines Act Cap 07 LFN 2004. defines an oil pipeline as “a pipeline for the conveyance of mineral oils, natural gas and any of their derivatives or components”. This definition was adopted in Agip Oil Company Ltd V Kemmer.
The construction and operation of oil pipelines in Nigeria is regulated by laws which include; the Oil Pipelines Act, Oil and Gas Production Regulations 1995, Petroleum Act, Petroleum Production and Distribution (Anti-Sabotage) Act, Environmental Impact Assessment Act, and so on.