NUPRC inaugurates metering and advanced cargo declaration project teams

The Commission Chief Executive (CCE) Engr, Gbenga Komolafe who inaugurated the teams in Abuja said the projects are geared towards strengthening the Commission’s regulatory oversight in line with the current administration’s vision for the oil and gas industry and the Renewed Hope Agenda.

Engr. Komolafe pointed out that one of the Commission’s objectives as specified in the Petroleum Industry Act (PIA), 2021, is to ensure that upstream petroleum operations are carried out in a manner that would minimise waste and achieve optimal government revenues.

To achieve this, he noted that it is important, in addition to the measures already established by the Commission, that the measurement and reporting of oil and gas production is regularly reviewed and improved to keep pace with the rapidly evolving industry.

According to him, audit of upstream measurement equipment and facilities in the Nigerian oil and gas Industry will ensure that some of the identified gaps in the system are resolved. These include obsolete and non-serviceable measurement equipment at some allocation or measurement points in the industry, lack of a comprehensive database or information about all the installed measurement equipment in the industry and lack of real-time production measurement across many locations.

He explained that the project has been carefully evaluated by the Commission to establish reliable and comprehensible baseline data for all measurement points, systems and measurement equipment; carry out a formal Gap Analysis for production, allocation and custody transfer measurement requirements; propose and implement appropriate and targeted intervention actions to enhance production measurement and flare metering including recommendations to procure, install and commission new metering infrastructure.

The Advance Cargo Declaration Solution, which complements the audit, has been designed to establish a robust system for the declaration and tracking of crude oil transportation and export from Nigeria; monitor and account for the movement of crude oil within Nigeria from production to delivery points; prevent disruptions, theft, and under-declaration of crude oil within Nigeria and at export terminals

It is also to establish a comprehensive database and control centre for monitoring and tracking crude oil exports from Nigeria; ensure that only certified production related to upstream crude oil operations are exported from Nigeria; ensure accurate accountability of hydrocarbons for calculating crude oil revenue accruable to the Government; and enable real-time tracking, reconciliation, and reporting for crude oil exported to facilitate appropriate revenue billing and generation.

The CCE said that these technologically driven projects collectively present a game-changing solution for transparency in production monitoring and crude oil accounting and expressed the belief that when completed, the projects will entrench transparency in the upstream sectors and combat the menace of illegal crude oil export, which are in tandem with the Commission’s Regulatory Action Plan and ease of doing business.

For effective implementation, the Commission assembled a team for each of the projects, and both teams are to be overseen by the Executive Commissioner, Development and Production, Engr Enorense Amadasu, who would provide feedback to the CCE’s office daily.

Members of the Measurement Equipment and Facilities Audit Team are:

The Advance Cargo Declaration Solution project members are:

Their duties will include liaising with the contractor to ensure the fulfilment of the Commission’s specified obligations and monitoring the implementation of the projects to ensure alignment with the scope and specifications. The projects are to be delivered in four (4) months. There is no provision for an extension.

While thanking President Bola Ahmed Tinubu and members of the Federal Executive Council for approving the projects, Engr Komolafe expressed confidence that the projects will be delivered as planned and requested the cooperation of all the relevant stakeholders, including the contractor, industry operators and staff of the Commission, to ensure the successful implementation of the projects.

Signed: