The incident came into light when children of Mal village in Farah police station area noticed petroleum spread over the playing field on Saturday, they said.
An FIR was registered with the Farah Police station by Area In-charge and Manager (Testing and Inspection) of Mathura Oil Refinery Suman Tudu, on the instruction of Chief Operations Manager (COM) E Haq yesterday, police said, adding that the pipeline has been repaired.
Around 35 pipes and over a dozen valves used by oil mafias to steal crude oil have been recovered, they said.
"Estimate of the amount lost in the incident is being carried out by a committee of the marketing department," Haq said.
Terming the incident as a threat to security of the nation he said, "Investigation is on and the accused will not be spared."
An inter-state gang of 12 members involved in large scale oil theft in the same area was busted by the police in 2013.