Against the background of enthroning accountability and curbing oil theft in the oil and gas sector, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, disclosed that the federal government has approved a contract for the construction of a metering system for all crude oil flow stations in the country.

Olokpobiri, who made the disclosure during a press briefing in the Federal Capital Territory, Abuja, said the Federal Executive Council (FEC) presided over by President Bola Ahmed Tinubu approved the contract on Wednesday, July 10, 2024.

According to the minister, “One of the key approvals by the FEC has to do with awarding a contract for the metering of our 187 flow stations across the Niger Delta region by the Nigerian Upstream Petroleum Regulatory Commission, NUPRC.

“NUPRC is the apex regulatory commission for the Nigerian oil and gas upstream sector. As part of our steps to ensure that we have proper accountability, FEC approves the metering of all our oil production," Olokpobiri added.

Giving more details on metering of flow stations, which are facilities where fluids, usually natural gas or crude oil, are gathered from a pipeline and processed, the minister stated that the contract awarded would be for a period of 180 days adding that the move would allow the country to meter about 187 flow stations.

On the area of tracking of cargoes, Olokpobiri stated that the contract will ensure cargo loading is monitored through digital technology until it is delivered at the final destination. 

“The second memo that was approved by council has to do with what we call advance cargo which means you award a contract to a company that will provide the technology within the same period (180 days) 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," the minister said. 

The minister said the contract which is worth $21 million, is a way to ramp up production and federation revenue, adding that the country has been able to bring back confidence in investors in the oil and gas sector.

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