FG inaugurates metering project teams to tackle oil theft

Add as a preferred source

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has inaugurated Metering Audit and Advance Cargo Declaration project teams, to promote transparency and accountability in the upstream oil and gas.

The Commission Chief Executive, Mr Gbenga Komolafe, who spoke at the inauguration of the project teams, on Wednesday in Abuja, said the projects were designed to combat crude oil theft and boost revenue.

It will be recalled that the Federal Executive Council (FEC) had approved a 21 million dollars contract to audit metering and measurement equipment in the 187 oil flow stations in the country and also put in place an advance cargo declaration solution.

These initiatives as earlier announced by Minister of State for Petroleum Resources Sen. Heineken Lokpobiri, aim at enhancing monitoring and accountability in crude oil production and distribution, addressing rampant oil theft.

Komolafe, while inaugurating the project monitoring teams, announced a four-month deadline for the completion of the projects.

According to him, the initiatives are in line with NUPRC’s mandate to ensure optimal government revenues from upstream petroleum operations, as specified in the Petroleum Industry Act (PIA) 2021.

He said the projects would be executed by PE Energy Limited and P-Lyne Energy.

“Audit of Upstream Measurement Equipment and Facilities project aims to establish reliable baseline data for all measurement points, identify gaps in production and allocation measurement, and implement targeted interventions to enhance metering infrastructure.

“This project is crucial in addressing issues such as the presence of obsolete equipment, lack of a comprehensive database, and absence of real-time production measurement across many locations.

“Advance Cargo Declaration Solution complements the metering audit by establishing a robust system for declaring and tracking crude oil transportation and exports from Nigeria,” he said.

He said the project would monitor and account for the movement of crude oil within the country, prevent disruptions, theft, and under-declaration, and ensure that only certified products were being exported.

“It will also enable real-time tracking, reconciliation, and reporting of crude oil exports to facilitate accurate revenue billing and generation.

“For a long time as a nation, we have suffered from the menace of crude oil theft and there have been contentions on the accuracy in terms of our hydrocarbon accounting in Nigeria in a manner that has impacted our federal revenue unfavourably.

“So what has happened is that the commission, within its assumption of office, has been able, as a regulator, to take a very bold measure to address this issue.

“We have 31 crude oil loading terminals. So we are trying to ensure that we put in place a framework where the nation will be able to accurately determine and measure the volume of crude that is loaded from these terminals,” he said.

He tasked the teams, comprising experts from various NUPRC departments, to discharge their duties professionally, adding that the projects would be delivered within four months, while any request for a timeline extension would not be entertained.

ALSO READ THESE TOP STORIES FROM NIGERIAN TRIBUNE