NUPRC confirms approval of ExxonMobil’s Butane lifting
Following the reports circulated by media that insinuate that the lifting operations were illegal, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has confirmed the legitimacy of the lifting of Butane at the Bonny River Offshore Terminal (BRT) by ExxonMobil.
“ExxonMobil had formally applied for approval of its operations as an integrated operation, as outlined in Sections 8(d) and 318 of the Petroleum Industry Act, 2021,”,according to a press release from the NUPRC signed by the NUPRC Chief Executive, Gbenga Komolafe.
“After a thorough evaluation, NUPRC granted approval for the requested operations. Subsequently, ExxonMobil obtained the necessary clearance from NUPRC for the lifting of 12,600 metric tonnes of Butane aboard the vessel named Barumk Gas on May 26, 2023.
“The Barumk Gas arrived at the BRT’s loading jetty on June 7, 2023, and loading operations took place on June 8, 2023. An official from NUPRC present at the terminal issued a Certificate of Quantity and Quality (CoQ) as required by law for accurate hydrocarbon accounting and reporting.
The CoQ ensures compliance with global best practices and guarantees the vessel’s ability to sail to its delivery destination.
“NUPRC unequivocally asserts that the entire operation was conducted within the confines of the law and in alignment with its role as the technical and commercial regulator of the upstream petroleum sector in Nigeria.”
The Commission denies any knowledge of illegality in the transaction and emphasizes that neither ExxonMobil Nigeria and its affiliates nor NUPRC itself committed any unlawful acts.
The NUPRC’s press release also references the 9th Senate’s ad hoc committee, which investigated oil lifting, theft, and their impact on petroleum production and revenues. As a result of the committee’s findings, the Senate passed resolutions calling for the streamlining of operations at crude oil export terminals in Nigeria. In accordance with Section 7(ee) of the Petroleum Industry Act, 2021, the Senate resolved that NUPRC should assume full regulatory oversight of all existing crude oil export terminals.
“The resolution was subsequently reviewed and endorsed by the then Attorney General and Minister of Justice, with the former President of Nigeria, Muhammadu Buhari, approving and directing immediate compliance with the resolution. This directive affirms NUPRC as the sole regulatory entity responsible for regulating and monitoring activities at all existing crude oil export terminals in Nigeria, in accordance with the relevant provisions of the Petroleum Industry Act, 2021,” the NUPRC explained.
