FG approves $21m contract for metering 187 flow stations to curb oil theft

The federal government has approved a contract for the construction of a metering system for all crude oil flow stations in Nigeria.

Flow stations are facilities where fluids, usually natural gas or crude oil, are gathered from a pipeline and processed.

Speaking during a press briefing in Abuja, Heineken Lokpobiri, minister of state for petroleum resources (oil), said the contract has been approved by the federal executive council (FEC).

Lokpobiri said that the contract awarded would be for a period of 180 days (six months), adding that the move would allow the country to meter about 187 flow stations. 

“The FEC approved the metering of 187 flow stations across the Niger Delta region of Nigeria by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The NUPRC is the apex regulatory agency or commission in the Nigerian oil and gas upstream sector,” he said. 

He said the initiative was approved to ensure proper accountability in the production of crude oil. 

“We have 187 flow stations in the country across the Niger Delta station and there was a contract awarded for us to metre all the flow stations so that we can properly account for what we produce and what we export. This project is meant to be completed within 180 days (6 months),” Lokpobiri said. 

The minister said another memo was approved by the council regarding “advance cargo”, which tracks when cargo is loaded at terminals, all the way to the point of destination. 

“The second memo that was approved by council has to do with what we call advance cargo which means you award a contract to a company that will provide the technology within the same period (180 days) to enable us know from the point of loading of every cargo of crude oil that is loaded in Nigeria up to the point of destination,” he said. 

He said this will ensure cargo loading is monitored through digital technology until it is delivered at the final destination. 

The minister said the contract is worth $21 million, adding that this is a way to ramp up production and federation revenue.

Lokpobiri said the country has been able to bring back confidence in investment companies. 

Additional reporting by Claire Mom