NUPRC, NMDPRA bicker over ExxonMobil Butane lifting at Bonny Terminal

Bonny Terminal

The National Upstream Petroleum Regulatory Commission (NUPRC) on Wednesday, countered its sister regulatory agency, the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s (NMDPRA) allegation of an illegal lifting of Butane at the Bonny River Offshore Terminal (BRT) by ExxonMobil.

The NMDPRA had in a letter dated June 8, 2023, to the Chief of Defence Staff, titled ‘Economic Sabotage Criminal Damage and Theft Through Illegal Petroleum Lifting Operation at Bonny River Terminal’ disclosed that the vessel Barumk Gas was lifting Butane at Bonny River Terminal without its authorisation or participation as the agency of Government statutorily responsible for regulating operations at the Terminal.

But reacting to the allegation, the NUPRC Chief Executive, Engr. Gbenga Komolafe stated that ExxonMobil had applied and obtained necessary clearance from the Commission before lifting 12,600 metric tonnes of Butane aboard the said vessel on May 26, 2023.

Komolafe in a statement issued in Abuja, said the Commission was not aware of any illegality in the transaction adding that none was committed by either ExxonMobil Nigeria and its affiliates or the NUPRC as an agency of Government.

“NUPRC wishes to state categorically that the said operation was legitimate and in line with the statutory mandate of the Commission as the technical and commercial regulator of the upstream sector in Nigeria as stipulated by law,” he said.

While giving the Commission’s position on the development, he explained that the 9th Senate had set up an ad hoc committee to investigate oil lifting, theft and the impact on petroleum production and revenues on the heels of the growing spate of crude oil theft in the upstream petroleum sector.

He said upon conclusion of its investigation and presentation of its findings on the floor of the Senate on November 7, 2022, the Committee’s resolution amongst others was the need for streamlining operations of MDAs at the crude oil export terminals in Nigeria.

“The Senate, in line with section 7(ee) of the Petroleum Industry Act, 2021, resolved that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) should assume full regulatory oversight of all existing crude oil export terminals.

“The resolution was sent to the President of the Federal Republic of Nigeria, Minister of State, Petroleum Resources, NUPRC, NMDPRA and all relevant stakeholders in the oil and gas industry in Nigeria.

“The President sought the opinion of the then Attorney General and Minister of Justice, who after a review concurred with the Senate resolution and reaffirmed that the said resolution is in line with the letter and spirit of the PIA, 2021 which seeks to promote ease of doing business and investments and enhance transparency of hydrocarbon accounting.

“Subsequently, the former President, Muhammadu Buhari, GCFR, approved the Senate resolution and explicitly directed immediate compliance with the resolution, insisting that NUPRC is the sole and only regulatory entity to regulate and monitor activities of all existing crude oil export terminals in Nigeria, in line with the relevant section of the PIA, 2021.

“The directive was sent to all relevant MDAs and stakeholders for compliance,” he said.

Komolafe said the Commission also notified industry operators and relevant stakeholders of the Presidential directive and its readiness to immediately assume full regulatory oversight.

“Therefore, concerning the issue of Butane lifting at the Bonny River Offshore Terminal (BRT), it is important to state that Exxonmobil formally applied to NUPRC for approval of its operations as an integrated operation, in line with Sections 8(d) and 318 of the Petroleum Industry Act, 2021.

” Following careful evaluation of the request, NUPRC deemed it fit and granted approval accordingly,” he stressed.

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