The Federal Executive Council has approved the award of a contract of $21 million for the metering of 187 crude oil flow stations in the Niger Delta.
Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri broke the news to reporters in Abuja yesterday.
He said the timeline for the completion of the project, which is targeted at curbing crude oil theft, is 180 days.
He also noted that the metering is to properly account for the country’s oil production and export.
“Two days ago, the Federal Executive Council meeting was held, presided over by Mr. President, Commander-in-Chief of the Armed Forces, wherein we took some very bold steps to reorganize the oil and gas sector.
“One of the key approvals by the Federal Executive Council that held on Wednesday has 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, the Federal Executive Council approves the metering of all our production.
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“We have 187 flow stations in the country, metered across the Niger Delta area, and there was a contract awarded for us to meter all the flow stations so that we will be able to properly account for what we produce and what we export.”
Lokpobiri also revealed that the Federal Executive Council meeting also approved the contract for the advanced cargo, which is also due for completion within 180 days.
Although he did not mention the cost of the advanced cargo contract, he explained that the company is expected to provide the technology to detect the loading of all crude oil cargoes in the country and track them to their destinations.
He said the software will track the oil right from the terminals to the flow stations and final points.
The minister said, “The second key issue is what we call advanced cargo. As part of the steps towards ensuring that we account for what we produce, and then Nigerians getting to get the maximum value for what we produce.
” The second memo that was approved by the council has to do with what we call advanced cargo, which means we are awarding a contract to a company that will provide the technology within 180 days, the same period, to enable us to know from the point of loading of every cargo of crude oil that’s loaded in Nigeria up to the point of destination. That is why I call it advanced cargo.”
“So the Federal Executive Council on Wednesday also, you know, approved a memo, and awarded a contract to be delivered within 180 days, you know, to provide the software also by the NUPRC, to ensure that we in Nigeria, you know, can monitor what is loaded from our terminals up to the final point of destination.”