FG Set to Meter All 187 Flow Stations to End Opacity in Nigeria’s Crude Oil Accounting

*Lokpobiri says OML 245 issues being resolved, asks Abacha’s family to keep quiet

*Reiterates Tinubu’s plan to expedite action on ongoing divestment

Emmanuel Addeh in Abuja

The Minister of State, Petroleum Resources (Oil), Senator Heineken Lokpobiri, yesterday announced that the federal government had awarded contracts to ensure the full metering of Nigeria’s 187 oil flow stations as well as a software to track the movement of Nigeria’s oil in the high seas.
Briefing journalists in his office in Abuja, the minister stated that the move was to remove all doubts as to the quantity of oil that Nigeria produces on a daily basis as well as to be able to track crude oil to their expected destinations.
Describing the effort to reorganise the oil and gas sector and ensure transparent accounting as a bold step by President Bola Tinubu, Lokpobiri explained that the projects would cost $21 million.

“One of the key approvals by the Federal Executive Council (FEC) on Wednesday, had to do with awarding a contract for the metering of our 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 that we have proper accountability, FEC approved the metering of all our production. And we have 187 flow stations in the country, littered across the Niger Delta area, so that we will be able to properly account for what we produce and what we export.
“It’s a major development that never happened in this country. And this project is meant to be completed within six months, within 180 days,” the minister disclosed.

On the second issue of advanced cargo, Lokpobiri pointed out that for Nigeria to account for what it produces, another memo was approved to provide the technology within 180 days to enable the country see the loading of every cargo of crude oil up to the point of destination.
“As part of the steps towards ensuring that we account for what we produce and that Nigerians get the maximum value for what we produce, the second memo that was approved by council has to do with 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 know from the point of loading of every cargo of crude oil that is 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 is taking off from Nigeria up to the final destination. You will agree with me that most of the times you talk about the issue of oil theft, major steps haven’t been taken, but this is the time for us to take 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. FEC also approved a memo, and awarded a contract to be delivered within 180 days to provide the software also by the NUPRC. To ensure that we in Nigeria can monitor what is loaded from our terminals up to the final point of destination,” he explained.

According to the minister, the main benefit of this was for Nigeria to ramp up production in federation revenue, since according to him, increasing oil output is still the fastest way to raise the funding needed to address Nigeria’s economic and social problems.
Lokpobiri stated that investors’ confidence was gradually returning to Nigeria, explaining that in the next few months, the country will be expecting major announcements, which will be in ‘tens of billions of dollars’.

The minister stated that businessmen could bring in their funds into the country and divest at any time, explaining that President Bola Tinubu was creating an environment that is globally competitive.
He added that when major issues like consent for divestment arise, he will not hesitate to present them to the president who doubles as the minister of petroleum for necessary action.
On the controversial Malabu’s OML 245, which he earlier said had been resolved and the reaction of Mohammed Abacha days later that he wasn’t aware the issue had been sorted out, Lokpobiri stated that although he didn’t want to join issues with the Abacha family, if he were from the family, he would simply keep quiet on the matter.

 “As far as I know, every oil block belongs to Federal Government of Nigeria, which gives licences to different people to operate. And so at will, the federal government can invoke whatever relevant laws and do whatever that the law allows it to do.
“I have no issues to join with anybody who says that they are tweeting that they are not in support or whatever. But I can assure you that we are resolving all the issues about OML 245, and we will resolve them in the overriding national strategic interests. This matter has been going on for the past 10 years.
“And if I were a member of the Abacha family, I wouldn’t even raise my head. I am Heineken Lokpobiri and even if I have authority, I can’t give any Lokpobiri an oil licence. That itself is criminal.

“And so if they know what they are doing, they should just keep quiet. I  am a lawyer, I have a doctorate degree, not in Nigeria. I had my masters and doctorate degrees in England.
“And I think it’s important that Nigeria has laws, just like any other country. If I were them, how can Abacha as the head of state give them a licence.
“But the point is that I am not involved in whatever they are doing, but I have a job to do. These oil blocks are federation assets. And the federal government will do everything that is legal to ensure that Nigerians benefit from the availability of these oil blocks in this country,” the minister stated.