The Federal Executive Council has approved a $21 million contract to meter 187 crude oil flow stations in Nigeria, aimed at ensuring proper accountability and transparency in the country’s oil production and exports.
The contract, awarded to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), is expected to be completed within six months.
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According to the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, the initiative will provide clarity on the volumes of crude produced in-country and exported to other nations.
“Two days ago, the Federal Executive Council meeting was held, presided over by Mr. President, where we took some very bold steps to reorganize the oil and gas sector.One of the key approvals by the Federal Executive Council has to do with awarding a contract for the metering of our 187 flow stations across the Niger Delta region of Nigeria,” Lokpobiri stated.
The minister also disclosed that the council approved another contract for the deployment of software that would enable the government to monitor the movement of Nigeria’s crude from the point of loading of every cargo in Nigeria up to the point of the cargo’s destination.
“The second key issue is what we call advanced cargo. This means we are awarding a contract to a company that will provide the technology within 180 days, the same period, to enable us to know from the point of loading of every cargo of crude oil that’s loaded in Nigeria up to the point of destination,” Lokpobiri explained.
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The main objectives of these decisions, according to Lokpobiri, are to ramp up crude oil production and grow revenue from oil sales. “Remember that oil is still the fastest way we can raise the funding we need to be able to address our economic and social problems.
That is why this project was awarded and is to be delivered within 180 days so that we will know when a cargo is loaded, we will monitor it through digital technologies, up to when it is delivered at the final destination, and that will increase our federation revenue
