NUPRC inaugurates metering project teams to curb oil theft

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has inaugurated metering audit and advance cargo declaration project teams.

Gbenga Komolafe, NUPRC’s chief executive officer (CEO), who spoke at the inauguration of the project teams on Wednesday in Abuja, said the projects were designed to curb oil theft and boost revenue.

On July 12, the federal executive council (FEC) approved a $21 million contract for the construction of a metering system for all crude oil flow stations in Nigeria.

Heineken Lokpobiri, minister of state for petroleum resources (oil), said 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.

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

While inaugurating the project teams, Komolafe said 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.

The NUPRC boss 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,” Komolafe said.

“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 the project aims to track and document the movement of crude oil within the country, prevent disruptions, theft, and underreporting and ensure that only certified products are exported.

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

“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.”

‘METERING PROJECTS TO BE COMPLETED IN FOUR MONTHS’

Komolafe instructed the teams, consisting of experts from various NUPRC departments, to carry out their duties professionally, adding that the projects would be completed within four months.

He said any requests for timeline extensions would not be considered.

Komolafe said each project has a dedicated team, led by Enorense Amadasu, executive commissioner for development and production at NUPRC, with strict deadlines for completion.

He commended President Bola Tinubu for his support and urged stakeholders to cooperate with the teams to facilitate the successful implementation of the projects.

The team for audit of upstream measurement equipment and facilities in the Nigerian oil and gas industry project include Manuel Ibituroko, deputy director of facilities engineering and optimisation; Mohammed Sirajo, manager of facilities engineering; Ike Chidi, manager of facilities engineering; and Bashir Shariff, principal regulatory officer.

“Team for Advance Cargo Declaration Solution project, comprise: Bello Shehu – Assistant Director, Crude Oil & Gas terminal Operations; Abdulrahman Idris – Manager, Petroleum Accounting; Omeje Desmond – Deputy Manager, COTO PHC; Dimkpa I. H. – PRO, COTO Warri and Olatunji Babatunde – NDR,” he added.

The NUPRC boss said the teams would liaise with the contractors to ensure the commission’s specified obligations are met and monitor the project’s implementation to ensure it aligns with the scope and specifications.

In his remarks, Daere Akobo, chief executive officer of PE Energy Limited, thanked the government for its confidence in the company’s ability to take a practical approach to hydrocarbon accounting.

Also, Tomi Ogunwole, director of P-Lyne Energy, assured that the company would adhere to the four-month deadline established by the commission.