A risk management framework for downstream petroleum product transportation and distribution in Nigeria

Abstract

In Nigeria, downstream transportation and distribution of petroleum products is mainly done using pipelines and truck tanker transport systems. These systems have been linked to substantial accidents/incidents with consequences on human safety and the environment. This thesis proposes a risk management framework for the pipelines and road truck tanker transport systems. The study is based on a preliminary review of the entire downstream petroleum industry regulations which identifies key legislations and stakeholder interests within the context of accident prevention and response. This was then integrated into tailored mixed method risk assessment of the pipeline and truck transport systems. The risk assessment made use of accident reports and inputs from semistructure interviews and focus group discussion with relevant stakeholder organisations. For the pipeline systems, 96.46% of failure was attributed to activities of saboteurs and third party interference. The failure frequency of the pipeline (per km-year) was found to be very high (0.351) when compared to failure frequencies in the UK (0.23×10-3) and the US (0.135×10-3). It was discovered that limitations in pipeline legislations and national vested interests limits regulatory and operational capabilities. As a result the operator lacks the human and technical capability for pipeline integrity management and surveillance. Similarly the finding from the truck system revealed that 79% of accidents are due to human factors. The tanker regulators have no structured approach in dealing with the regulation of petroleum road trucking. Also, operating companies poorly adhere to safety standards. From an accident/incident response perspective, it was discovered that local response capability is lacking and the vulnerability of affected communities increases due to poor knowledge of the hazards associated with petroleum products. A framework was proposed for each of the transport systems. For the pipeline system, the framework leverages on the powers of the Petroleum Minister to provide best practice pipeline risk management directives. It also proposes strategies which combine the use of social tactics for engaging host communities in pipeline surveillance with technical tactics to enhance the pipeline integrity. For the truck risk management framework, control points for prevention of truck accidents were identified. It adheres to principles of commitment to change, and regulatory/peer collaboration for deployment of management actions. Suitable policy recommendations were made based on regulatory and operational interest of stakeholder organisations.