A contract for the metering of 187 crude oil flow stations in the Niger Delta region has been approved by the Federal Executive Council (FEC).
On Friday, July 12, Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), informed reporters of this in Abuja.
He said that the project would take 180 days to complete and was intended to reduce crude oil theft.
Additionally, he mentioned that the metering is meant to accurately account for the nation’s oil export and production.
“We took some very bold steps to reorganize the oil and gas sector at the Federal Executive Council meeting two days ago, which was presided over by Mr. President, Commander-in-Chief of the Armed Forces.”
“One of the major approvals by the Federal Executive Council on Wednesday was the awarding of a contract by the Nigerian Upstream Petroleum Regulatory Commission, (NUPRC) for the metering of our 187 flow stations throughout the Niger Delta region of Nigeria.”
“We approve the metering of all our production by the Federal Executive Council as part of our steps to ensure that we have proper accountability.”
“We have 187 flow stations in the country, metered across the Niger Delta area, and there was a contract awarded for us to metre all the flow stations so that we will  be able to properly account for what we produce and what we export,” she added.
Extra Advanced Cargo AgreementÂ
In addition, Lokpobiri disclosed that a contract for an advanced cargo tracking system was approved at the Federal Executive Council meeting and is anticipated to be finished in 180 days.
He added that the selected company would give technology to track and monitor the loading of all crude oil cargoes across the nation, but he did not reveal the cost.
From the terminals to the flow stations and final locations, the oil will be tracked by the software, he claimed.
“Advanced freight is the second major concern. In an effort to make sure that we account for the output we make and that Nigerians receive the most value possible for it.”
“The second memo, which was accepted by the council, deals with what we refer to as advanced cargo. Essentially, we are contracting with a company that will supply the technology within the same 180-day timeframe so that we can track every cargo of crude oil that is loaded in Nigeria all the way to its final destination. Hence, I refer to it as advanced cargo.”
What to note
The oil and gas industry has suffered from underinvestment and a lack of the infrastructure required to spur expansion for more than ten years.
The potential of the industry has been hampered by this protracted period of stagnation, which has also impacted the nation’s overall economic growth.
President Bola Tinubu signed an executive decree to support the industry in response to these difficulties.
This decree contains a number of incentives aimed at promoting growth and drawing in fresh capital. The government’s initiative is a big step in the right direction for the industry’s revival.
Additionally, the Nigerian National Petroleum Corporation (NNPC) Limited has improved the investment climate by acting decisively.
By resolving a number of court cases involving International Oil Companies (IOCs), the NNPC eliminated major obstacles that had previously impeded development. It is anticipated that this resolution will improve the investment climate.
