Oil Theft: NUPRC Wields PIA Powers, Makes Export Permits, Vessel Clearance, Real-Time Tracking Compulsory

…Releases Cargo Declaration Rules To Block Crude Theft, Enforce Transparency

The Nigerian Upstream Petroleum Regulatory Commission has released the Nigerian Upstream Petroleum Advance Cargo Declaration Regulation Guidelines, aimed at tightening oversight and enhancing transparency in crude oil export operations from Nigeria.

The guidelines, issued under Section 10(f) of the Petroleum Industry Act (PIA) 2021, provide a comprehensive framework for obtaining export permits, vessel clearance, and a mandatory Unique Identification Number (UIN) for all crude oil, condensate, natural gas liquids, and petroleum product exports from Nigerian terminals and export points.

The Advance Cargo Declaration solution implemented by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is designed to enhance transparency and accountability in crude oil export operations.

It aims to achieve this by establishing a robust system for declaring and tracking crude oil movement, from production to export terminals, and ensuring that only certified products are exported.

This system is intended to prevent oil theft, under-declaration, and other irregularities in the export process.

Specifically, the ACD solution aims to monitor and account for crude oil movement by tracking crude oil from its origin within Nigeria to its export point, ensuring a clear record of its journey.

It also prevents disruptions, theft, and under-declaration of petroleum products.

By providing a transparent and traceable system, the Advanced Cargo Declaration System would help to minimize opportunities for illegal activities like oil theft and under-reporting of exported quantities.

According to the document obtained by THE WHISTLER, all licensees, lessees, or exporters must now apply through the Commission’s dedicated online platforms—the Crude Oil Export Permit and Advance Cargo Declaration Portals—before engaging in any export operations.

These applications, the NUPRC stated in the guidelines, must be backed by specific documentation in line with Nigeria’s measurement and quality assurance procedures.

The release of the guidelines is coming about 11 months after the NUPRC kick-started the project aimed at enhancing transparency and accountability in the upstream oil and gas sector.

Recall that the Federal Executive Council (FEC) had last year approved a $21m contract to audit metering and measurement equipment in the 187 oil flow stations in the country and also put in place an Advanced Cargo Declaration solution.

These initiatives which were announced by minister of state for Petroleum Resources Heineken Lokpobiri last year, aim to enhance monitoring and accountability in crude oil production and distribution, addressing rampant oil theft.

In the guidelines released by the NUPRC, the Commission stated that the framework would apply to licenses and leases granted or preserved by the Petroleum Industry Act (PIA) and to all crude oil, natural gas, natural gas liquids, and petroleum products and exports from all terminals and export points in Nigeria.

It said, “These Guidelines shall apply to licences and leases granted or preserved by the Petroleum Industry Act (PIA) and to all crude oil, natural gas, natural gas liquid and petroleum products and exports from all terminals and export points in Nigeria.

“A licencee, lessee or exporter of crude oil, condensate, natural gas liquid or petroleum products from any terminal in Nigeria shall first obtain an export permit, vessel clearance and Unique Identification Number by applying to the Nigerian Upstream Petroleum Regulatory Commission (Commission) online Crude Oil Export Permit (COTEX) platform with the documents specified in Section 5.3 of the Procedure Guide for the Determination of the Quantity and Quality of Petroleum and Petroleum Products in Nigeria.

“An export permit holder shall apply for vessel clearance for the export of crude oil under the permit by applying on the Commission’s Advance Cargo Declaration Portal by way of Documentary Instruction (DI) in accordance with the Advance Cargo Regulations and subject to the crude oil measurement and accounting procedure of the Commission at the terminal.

“Upon receipt of an application for vessel clearance, the Commission shall issue a clearance notification to the terminal operator after validation of the identity of the export permit holder for the crude stream to be exported; and verification of the volume to be exported to ensure that it is within the volume approved in the export permit by the Commission.”

The Commission also stated in the guidelines that the vessel clearance notification must be embossed with a Unique Identification Number automatically generated by the Portal at the time of issuing the notification.

It added that a copy of the clearance notification to the terminal operator must be forwarded to the export permit holder via the Portal.

The guidelines added, “Following the conclusion of loading of any export cargo at a terminal, the Commission shall issue a certificate of quantity and quality using the export measurement data from the loading activities.

“The Unique Identification Number on the vessel clearance notification shall be embossed on the certificate of quantity and quality and all other shipping documents relating to the export, such as bill of lading, certificate of origin, tanker/cargo manifest, vessel documentation; and any other relevant document related to the export.”

The guideline further stated that the Commission would upload a copy of the certificate of quantity and quality, and any other documents related to the export on the Portal within 24 hours following the completion of the cargo loading process.

It added, “The Commission may refuse to issue a vessel clearance notification based on any of the following reasons: incomplete information, inadequate documentation, false information.

“The holder of an export permit may re-submit a vessel application that the Commission refused to issue approval based on any of the fore-going reasons except for submission of false information, without the payment of additional processing fee and the payment of any penalty for late application.”

The Commission stated further in the guideline that revision of vessel clearance application may occur where the export permit holder, following the submission of an application for vessel clearance on the Portal, elects to change or revise the information or volume of export in the original application.

This revision, it added, must be subject to the payment of a revision of the application fee as provided in the Fees Provisions of these Guidelines.

“All payments associated with vessel clearance and Unique Identification Number procedure in these guidelines shall be made by the licencee, lessee or exporter of crude oil, condensate, Natural Gas Liquids and Petroleum Products from any terminal/export points in Nigeria and shall be made to an account designated by the Commission for that purpose,” the guidelines concluded.

ENDS

Oil Theft: NUPRC Wields PIA Powers, Makes Export Permits, Vessel Clearance, Real-Time Tracking Compulsory is first published on The Whistler Newspaper