July 19, 2024
Oil theft: FG emerges with new rules on crude measurement
– By Godswill Odiong

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By Eyo Nsima
The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, has commenced the process of enacting new regulations on crude oil measurement as part of an effort to tackle oil theft.

The Commission Chief Executive, Engr. Gbenga Komolafe disclosed, who disclosed this at the 3rd phase stakeholders consultation forum on draft regulations, said that for several years,  there have been issues around standard measurement for crude oil produced in Nigeria.

Engr. Komolafe, who was represented by Executive Commissioner, of Development and Production, Dr. Habib Nuhu, said the new rule “is designed to upgrade and optimize hydrocarbon measurement framework in the upstream petroleum industry in Nigeria to align to international best practices but importantly to ensure that there is absolute transparency and accountability in the way and manner we not only produce oil but also handle oil to support value creation”.

He said that the new regulations are planned: Upstream Petroleum Measurement Regulations; Advance Cargo Declaration Regulations; Significant Discovery Regulations; Gas Flaring, Venting and Methane Emissions (Prevention of waste and pollution) Regulations; and Domestic Crude Oil Supply Obligation Regulations.

Also speaking, the Executive Commissioner, of Economic Regulation and Strategic Planning, Dr. Kelechi Ofoegbu noted that the industry has suffered because of a “lack of transparency and accountability. People say that our operations are masked in a haze because they don’t understand exactly what is going on.

“One of the things we have set out to do as a commission is to infuse that transparency and line of sight for everybody as mandated by the PIA. These regulations are a way of operationalizing the PIA. The regulations we are bringing out today, in particular, the measurement regulation and advance cargo declaration regulation are designed to improve the transparency profile of the upstream sector.”

He added: “The measurement regulation is the regulation that will guide operators in accounting for hydrocarbons produced so that there is absolutely no confusion between what is produced and what makes its way to export terminals at the end of the day.”

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