The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says about 40 percent of the volumes of crude oil losses in Nigeria are due to measurement inaccuracies and not theft.
Gbenga Komolafe, chief executive officer, NUPRC, spoke at the petroleum club quarterly dinner held in Lagos, according to a statement.
Komolafe said the commission made the discovery after it conducted a forensic audit on crude theft numbers from January 2020 to November 2022.
He said the audit was to ascertain, with accuracy, the stolen volume of crude oil within the reference period.
The NUPRC boss added that the commission is committed to dealing with the issue of metering errors by ensuring that original equipment manufacturers (OEMs) are licensed directly.
He said agents of the commission will be responsible for the deployment and maintenance of metering facilities across Nigeria’s oil and gas establishments, for transparency in hydrocarbon accounting.
“The reform measure adopted by the commission offers a paradigm shift from the trajectory in Nigeria’s hydrocarbon measurement since oil was discovered in Nigeria in Oloibiri in 1956 and is aimed at ensuring that no one becomes a judge in his own case,” he said.
“Admittedly, one major area of value erosion in the industry is the menace of crude oil theft. Our records indicate that the menace of oil theft has negatively impacted the oil and gas sector for about two decades with attendant huge financial losses to our nation.
“The commission, in collaboration with the various arms of the security forces, the NNPC Limited and the host communities, have been able to suppress the ugly trend of hydrocarbon value decimation. Now, our nation has continued to record good dividends of these collaborative efforts as production figures are progressively increasing.
“The January 2023 volume is approximately 1.5 million barrels per day of oil and condensates. It is expected that this number will continue to increase as further measures are introduced and sustained to remove all illegal connections that aid crude oil theft.”
NIGERIA IS FLARING 10% OF GAS PRODUCTION
Komolafe also said Nigeria is currently flaring about 10 percent of gas produced, adding that NUPRC is making efforts to end it.
“Currently, Nigeria is flaring about 10 percent of gas produced, a feature the commission is also determined to eliminate through the on-going gas flare commercialisation programme (GFCP),” he said.
“Nigeria produces about 8BSCF/D of gas, out of which approximately 20 percent is delivered to the domestic market, approximately 40 percent is exported to international markets, 30 percent is utilised for producer’s internal consumption and the excess gas is flared.
“In alignment with our objectives, as outlined in section 6 of the Petroleum Industry Act, the commission is diligently pursuing the basic regulatory goals which include: increasing Nigeria’s oil and gas reserves and production, developing a transparent approach to hydrocarbon accounting, and attaining operational efficiency and effectiveness in industry operations.”
In addition, he said the commission is committed to facilitating peace and harmony in the host communities to guarantee a conducive operating environment for investors, positively impacting on operating cost and attracting more investment opportunities.
Source: Top Stories
