Nigeria’s Federal Executive Council has approved the award of a $21 m contract for the metering of 187 crude oil flow stations to account for the country’s oil production and exports properly. The project is part of reorganizing the oil and gas sector, with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) as the apex regulatory agency.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, gave this indication to the press this evening. He said meters’ deployment will be complemented by advanced cargo tracking technology.
The main objectives of these decisions are to ramp up crude oil production and grow its revenue from oil sales. The government wants to ensure proper accountability and increase federation revenue by monitoring the movement of crude oil from the point of loading in Nigeria to the point of destination. Concerns have been raised about the lack of transparency in getting the actual crude oil volumes produced in the Niger Delta.
Nigeria currently produces less than 1.3 million barrels of crude oil daily, less than the 1.5 million daily production quota approved by the Organisation of Petroleum Exporting Countries (OPEC).
However, with the deployment of software and metering of the 187 flow stations, the country hopes to get the actual volumes of crude produced in Nigeria, which would also help in the drive to ramp up crude oil production. The database and control center will track crude oil export from the point of loading to the final destination point in any part of the world.
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