…. Report Will Redefine Nigeria’s Monetisation Of Natural Resources—Komolafe
Nigeria’s oil and gas sector has gained fresh momentum as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has received the Engineering Audit of Upstream Measurement Equipment and Facilities in the Nigerian Oil and Gas Industry.
The move is expected to bolster government revenue as Nigeria seeks funding for its proposed N54.9tn 2025 budget.
The Engineering Audit report was submitted on Tuesday by PE Energy Limited.
The historic audit covered on-site inspections and evaluations of all upstream metering systems, documentation of both current and ideal measurement points as defined by the Petroleum Industry Act, 2021.
It also covered the development of intervention strategies ranging from equipment upgrades to new installations, and advisory services to optimize measurement in areas with limited metering infrastructure.
The NUPRC said, “The report marks a decisive response towards the improvement in hydrocarbon measurement and accountability to ensure optimal revenue collection within Nigeria’s oil and gas landscape.
The Commission Chief Executive, Nigeria Upstream Petroleum Regulatory Commission, Gbenga Komolafe during a presentation of engineering audit of oil and gas measurement systems by PE Energy
“As mandated by the Petroleum Industry Act (PIA) 2021, the NUPRC is tasked with ensuring that hydrocarbon resources are accurately measured and reported.
“The audit has helped in conducting a gap analysis, delivering a verified baseline inventory of all measurement points, and implementing a competency transfer program for the Commission toward reshaping regulatory culture in the upstream sector.”
THE WHISTLER can report that section 7 (I) of the Petroleum Industry Act, 2021 mandated NUPRC to ensure accurate measurement of hydrocarbons.
Nigeria has faced setbacks with crude oil theft in the past. But the Commission Chief Executive of the NUPRC, Engr. Gbenga Komolafe revealed that about 40 per cent of what is measured as crude oil theft is from metering error.
3RD From Left, The Chief Executive Officer of PE Energy, Daere Akobo and (Middle) the Commission Chief Executive, Nigeria Upstream Petroleum Regulatory Commission, Gbenga Komolafe during a presentation of engineer
Komolafe said last year, “Accurate metrics of production are very important. It is as important as ramping up, increasing the production. So, the commission at the moment, one of the initiatives we introduced was to ensure the fact that we put in place a regulation we call the measurement regulation.
“As I speak, the implementation of the provisions of that regulation has commenced and we expect to see the nation being able to have the digital monitoring of its daily production and that is very critical.”
In order to ensure transparency in hydrocarbon accounting, the NUPRC embarked on a Metering Systems Audit & Optimisation to align with international standards.
The commission also embarked on Advanced Cargo Declaration for tracking and check revenue leakages.
The moves were backed by the Federal Executive Council (FEC) as it approved a contract for metering 187 crude oil flow stations in the Niger Delta.
“The FEC approved the metering of 187 flow stations across the Niger Delta region of Nigeria by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The NUPRC is the apex regulatory agency or commission in the Nigerian oil and gas upstream sector,” the Minister for State Petroleum (Oil), Heineken Lokpobiri had said last year.
The Commission Chief Executive, Nigeria Upstream Petroleum Regulatory Commission, Gbenga Komolafe during a presentation of engineering audit of oil and gas measurement systems by PE Energy
Experts believe that the audit report would bring relief to both the regulator and the federal government in the area of hydrocarbon measurements.
Reacting to the report, Komolafe, expressed excitement over the success of the audit.
He noted the “Results would redefine how Nigeria manages and monetizes its most vital natural resource.”
The NUPRC boss pledged to ensure that the recommendations are fully implemented.
Reacting to the audit, the Chairman of PE Energy, Daere Akobo, said the initiative is a critical pillar in Nigeria’s broader reform agenda for the oil and gas sector.
He disclosed that the audit will entrench transparency and accountability in the industry.
He said the audit “Seeks to overhaul how oil production is measured and monitored, sending a clear message that a new era under the Petroleum Industry Act has begun, where accuracy, accountability, and transparency are non negotiable.”
