In a major step to address crude oil theft, and dwindling crude oil production in the country, the Federal Government has awarded a contract worth $21 million for the installation of meters in 187 flow stations in the Niger Delta.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri disclosed this while addressing newsmen on Friday in Abuja.
He said the intent was to monitor and ensure accountability of the volume of crude oil that is produced and exported out of the country.
Senator Lokpobiri, who said the installation project is expected to be delivered in six months, also disclosed that plans are on to meter the over 2,000 wellheads in the country.
Recall that the contract was approved at the last Federal Executive Council (FEC) meeting presided by President Bola Tinubu to increase crude oil production, generate more revenue to the federation account.
The first contract was for the engineering audit of upstream measurement equipment and facilities in the Nigerian oil and gas Upstream Sector in favour of Messrs. PE Energy Limited, to be completed in 180 days.
While the second contract was for the pre-field development studies for advanced declaration solution Technology in the Nigerian oil and gas Upstream sector, in favour of Messrs. P-Lyne Energy Limited, to be completed in 180 days.
Speaking further, the Minister said, “As part of our steps to ensure we have proper accountability, the FEC approved the metering of all our production and we have 187 flow stations in the country littered across the Niger Delta area and there was a contract awarded for us to metre all flow stations so that we’ll be able to properly account for what we produce and what we export.
“It’s a major development that has never happened in this country and this project is meant to be completed within six months, within 180 days. It is important that Nigerians know some of the key steps this government is taking so that we maximise the opportunities that other countries are getting by the availability of the oil and gas in Nigeria.
“As part of the steps in ensuring that we account for what we produce and Nigerians get maximum value for what we produce, the second memo that was approved by Council which was was the awarded of a contract to a company that will provide the technology within 180 days, the same period, to enable us know from the point of loading of every cargo of crude oil that loaded in Nigeria up to the point of destination.
“So if, from Forcados terminal crude oil is loaded, I can stay in my office and know when it’s taken off from Nigeria up to the final destination. You will agree with me that most of the times we talk about the issue of oil thefts, major steps have to be taken. But this is the time for us to take very, very major steps so that we know from the beginning what we produce to the point of loading from our terminals up to the point of destination.
“We will know when cargo is loaded, we’ll monitor it through digital technologies up to when it is delivered at the final destination and that will increase our federation revenue also, it will ensure there is a database and a control center dedicated to tracking our crude oil export from the point loading to the final point of sales”, he said.
The Minister, who stressed that for the past 12 months there was no serious investment in the sector, noted that the situation has changed as the current administration was able to restore investors’ confidence in the sector.
“We’ve been able to bring back the confidence of the investing community. Recall that for the past 12 years they’ve been no major investments but since the inception of this administration, and since I was appointed as minister of petroleum resources oil, I have worked very hard to rekindle the confidence of the investing community. And you will agree with me that investments have started coming in. In the next few months, we are expecting major announcements, which will be tens of billions of dollars.”
He revealed that assets divestment by the International Oil Companies (IOCs) is going smoothly as two have been approved, while others are in the process of being approved.
While reaffirming the federal government’s commitment to creating a globally competitive environment, the Minister assured of working with all the relevant stakeholders to transform the sector for the benefit of Nigerians.
