NUPRC attributes 40% of crude loss to inaccurate measurement, theft
By Ibiyemi Mathew
Approximately 40% of the volumes credited to crude losses in the Nigerian petroleum industry are actually attributable to measurement inaccuracies and not theft as often reported.
The Chief Executive of the Nigerian Upstream Regulatory Commission (NUPRC), Engr Gbenga Komolafe stated this in Lagos at the Petroleum Club Quarterly Dinner, said the revelation followed a forensic audit conducted by the Commission covering the period January 2020 to November 2022 on crude theft numbers.
The audit was to ascertain with accuracy the stolen volume of crude oil within the reference period.
Delivering a speech on “Nigerian upstream petroleum sector: value optimization, energy transition and regulatory perspectives,” Engr. Komolafe said the Commission is committed to dealing with the issue of metering errors by ensuring that Original Equipment Manufacturers (OEMs) licensed directly as agents of the Commission will be responsible for deployment and maintenance of metering facilities across the Nigeria’s oil and gas facilities, for transparency in hydrocarbon accounting.
“The reform measure adopted by the Commission offers a paradigm shift from the trajectory in Nigeria’s hydrocarbon measurement since oil was discovered in Nigeria in Oloibiri in 1956; and is aimed at ensuring that no one becomes a judge in his own case.
“Admittedly, one major area of value erosion in the industry is the menace of crude oil theft. Our records indicate that the menace of oil theft has negatively impacted the oil and gas sector for about two decades with attendant huge financial losses to our nation,”Komolafe said.
Speaking on the efforts of the Commission, he said, “The Commission, in collaboration with the various arms of the Security forces, the NNPC Limited and the host communities, have been able to suppress the ugly trend of hydrocarbon value decimation.
“Now, our nation has continued to record good dividends of these collaborative efforts as production figures are progressively increasing.
“The January 2023 volume is approximately 1.5 million barrels per day of oil and condensates. It is expected that this number will continue to increase as further measures are introduced and sustained to remove all illegal connections that aid crude oil theft,” he concluded.
