Oil theft: FG Approves N32bn contract for metering of 187 flow stations

In a major move towards reforming Nigeria’s energy sector, the federal government has approved N32 billion (21million dollars) contract for the construction of a metering system for all the 187 crude oil flow stations in the country. Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made the announcement during a press briefing on Friday […]

In a major move towards reforming Nigeria’s energy sector, the federal government has approved N32 billion (21million dollars) contract for the construction of a metering system for all the 187 crude oil flow stations in the country.

Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, made the announcement during a press briefing on Friday in Abuja,

He said the approval for the contract was awarded by the Federal Executive Council chaired by President Bola Tinubu.

He said the contract awarded would be for a period of 180 days, adding that the move is coming at a time when stakeholders in the oil and gas sector had blamed faulty metering procedures, faulty instruments and lack of technology as some of the impediments to tackling crude oil theft.

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In recent times, pipelines, well heads, and flow stations have been the major targets of oil thieves in Nigeria.

Currently, there is no proper digitalised monitoring of the metering of the crude oil produced for export.

Speaking on the development, Lokpobiri said the metering would enable the government to boost crude oil production as well as increase federation revenue.

He said: “This is the first time in the history of the country where a flow station will be having a digital metering system.”

He said the metering project is in line with the agenda of the government to ensure transparency and accountability in the oil and gas sector.

Also, the Minister disclosed that the federal government is implementing a tracking system for Nigeria’s crude to the last mile.

He said: “So if from the cargo terminal, crude oil is loaded, I can stay in my office and know when it is taken off from Nigeria, up to the final destination.

“With this technology, we’ll know from the beginning what we produce to the point of loading from a terminal up to the point of destination.

“Remember that oil is still the fastest way to correct the funding we need to be able to address our economic and social problems. And so one of the steps taken as a government is to ensure that there is proper accountability and that is why this program or this project was awarded to deliver it within 180 days.”