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The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has unveiled two projects aimed at enhancing transparency and regulatory oversight in the upstream sector of the nation’s oil and gas industry.
These initiatives underscore NUPRC’s commitment to its mandate as both a technical and commercial regulator. The launch follows recent approval by the Federal Executive Council.
The two projects are, Audit of Upstream Measurement Equipment and Facilities in the Nigerian Oil and Gas Industry and the Advance Cargo Declaration Solution.
These projects align with the current administration’s vision and agenda, focusing on minimizing waste and optimizing government revenues, as outlined in the Petroleum Industry Act (PIA) of 2021. This legislation mandates the Commission to ensure that upstream petroleum operations are efficient and transparent.
The Audit of Upstream Measurement Equipment and Facilities seeks to address several identified gaps, such as outdated and non-serviceable measurement equipment, the absence of a comprehensive database of installed equipment, and a lack of real-time production measurement across many locations. The project also aims to establish reliable baseline data for all measurement points and equipment, and conduct a formal gap analysis for production, allocation, and custody transfer measurement requirements.
Other objectives include proposing and implementing targeted interventions to enhance production measurement and flare metering, including the procurement, installation, and commissioning of new metering infrastructure.
The Advance Cargo Declaration Solution, which will complement the audit project, is designed to establish a robust system for declaring and tracking crude oil transportation and export from Nigeria. It will monitor and account for crude oil movement within Nigeria, from production to delivery points, and prevent disruptions, theft, and under-declaration of crude oil within Nigeria and at export terminals. Additionally, it aims to create a comprehensive database and control center for monitoring and tracking crude oil exports.
The Advance Cargo Declaration Solution is expected to ensure that only certified production related to upstream crude oil operations is exported and will guarantee accurate accountability of hydrocarbons for calculating government revenue.
According to the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Engr. Gbenga Komolafe, these projects will enable real-time tracking, reconciliation, and reporting of exported crude oil to facilitate proper revenue billing and generation.
For effective project execution, the Commission has formed dedicated teams overseen by the Executive Commissioner, Development & Production, Engr. Enorense Amadasu.
These projects, according to the Commission Chief Executive of the NUPRC, Engr. Komolafe, are set to be delivered within four months, with zero tolerance for any delays.
Those present at the launch included Daere Akobo, the Chief Executive Officer of PE Energy Limited, and Tomi Ogunwole, Director of P-Lyne Energy.