The Federal Government has awarded a $21 million contract for the installation of meters in 187 flow stations in the Niger Delta, to monitor and ensure accountability of the volume of crude oil that is produced and exported out of the country.
The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri who addressed newsmen on Friday in Abuja, noted that the move was one of the measures approved at the last Federal Executive Council (FEC) meeting presided over by President Bola Tinubu to increase crude oil production, generate more revenue to the federation account.
Lokpobiri who said the contract was expected to be delivered in six months, added that the FEC also noted that a second memo on advanced cargo was also approved at the FEC meeting for the installation of software within the same completion period of six months
He said: “We took bold steps to reorganise the oil and gas sector. One of the key approvals that the Federal Executive Council approved on Wednesday has to do with awarding a contract for the metering of 187 flow stations across the Niger Delta region of Nigeria by the Nigerian upstream petroleum Regulatory Commission NUPRC
“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’s 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 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 means we awarded 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 time 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.
“You will agree with me that most of the time we talk about the issue of oil theft major steps have been taken, but it’s time for us to take very major steps so that we will 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 centre dedicated to tracking our crude oil export from the point loading to the final point of sales.”
Lokpobiri who noted that the hard work of the current administration was paying off by restoring the confidence of investors in the nation’s oil and gas sector, added that oil was still the fastest way the country could raise the funding needed to address its economic and social problems.
“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 investment 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.”
The minister who maintained that divestments were not alien to any country or sector, disclosed that the ongoing move by International Oil Companies (IOCs) to divest their onshore assets was going on seamlessly.
He assured Nigerians that “this government is committed to transparently transform the oil and gas sector so that Nigerians can get the benefits of the abundance and availability of oil and gas resources that are in Nigeria.”