The Federal Government has approved a $21 million contract to build metering systems at 187 crude oil production stations across the country to curb oil theft.
The Minister of State for Petroleum Resources (Petroleum), Mr Heineken Lokpobiri, disclosed this on Friday in Abuja while briefing journalists on some of the latest developments in the oil and gas sector.
The Minister said the Federal Executive Council (FEC), chaired by President Bola Tinubu, approved the contract on Wednesday, describing it as a bold move that will reshape the oil and gas sector.
Flow metering is the process of measuring and controlling the flow rate of a liquid or gas through a system. “One of the key approvals by the FEC is for the award of a contract by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for the metering of 187 flow stations across the Niger Delta.
“NUPRC is the apex regulatory commission for the oil and gas sector in Nigeria. As part of measures to ensure proper accountability, the FEC has approved the metering of all our oil production.
“We have 187 flow stations in the country across the Niger Delta and it is mandatory for us to measure all our flow stations so that we have a proper picture of our production and exports.
“This is a significant development and the project is expected to be completed within six months and 180 days,” he said.
Lokpobiri said it was very important for Nigerians to know the significant steps that the government was taking to maximize the opportunities that other countries could derive through the availability of oil and gas.
The Minister identified the second major key approved as Advanced Cargo, explaining that this is part of a step to ensure accountability in production and ensure Nigerians get the most out of their resources.
“The second memo approved by the Council mentions the so-called Advanced Cargo, which means that we will enter into contracts with companies that will provide the technology within 180 days.
“This will allow us to know every shipment of crude oil from the point of loading to its destination.
“From the terminal, I can sit in my office and know when the oil is being transported from Nigeria and when it will arrive at its final destination.
“He said these new developments are a significant step forward since the fight against oil theft began.
From the beginning, it will determine what will be produced, from the point of loading to the terminal to the destination. He said the FEC had approved the memorandum of understanding and signed a contract to be completed within 180 days, and that NUPRC would procure software to ensure proper monitoring of crude oil being loaded from the terminal to its final destination.
This will increase production and generate national revenue, he said. Oil therefore remains the fastest way to raise funds to solve economic and social problems. He said the digital system would allow the database and control centre to be solely dedicated to tracking crude exports from the loading point to their destination.
