The loss of over 437,000 barrels of crude oil amounting to $10 Billion from crude oil theft and petroleum pipeline vandalism from January to July 2022 can be termed “an economic sabotage” to the Nigerian economy and the environment. This act of criminality has occurred in the face of plethora of legislation and policies promulgated to avert the activities of stolen crude in Nigeria, in addition to the post-COVID19 pandemic financial crunch in most countries. The paper evaluates the emergence of petroleum pipeline surveillance contracts. It also analyzes the impacts of pipeline vandalism and crude oil theft in Nigeria. It adopts the doctrinal research method by contextualizing scholarly materials relating to the title by revealing that although pipeline surveillance contracts lacked transparency in the award processes by the Nigerian Government; its use has more impact in reducing crude oil theft and petroleum pipeline vandalism in Nigeria. The paper recommends the use of pipeline surveillance contracts as well as the involvement of host community’s contractors in petroleum pipeline surveillance in Nigeria’s oil and gas industry. It concludes by arguing that pipeline surveillance contracts and other measures to promote petroleum pipeline security in Nigeria will serve as a panacea to crude oil theft and petroleum pipeline vandalism in Nigeria.