FG Approves ₦32-Billion Contract To Fight Oil Theft In Niger-Delta

FG Approves ₦32-Billion Contract To Fight Oil Theft In Niger-Delta

In a significant effort to overhaul Nigeria’s energy sector, the federal government has sanctioned a ₦32 billion ($21 million) contract to install a comprehensive metering system across all 187 crude oil flow stations in the country.

Ireporteronline reports that Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, announced this development during a press briefing on Friday in Abuja.

The approval for the contract came from the Federal Executive Council, chaired by President Bola Tinubu.

Lokpobiri highlighted that the contract, set for a 180-day completion period, addresses long-standing issues in the oil and gas sector.

Faulty metering procedures, outdated instruments, and lack of advanced technology have been significant hurdles in combating crude oil theft in Nigeria. Pipelines, wellheads, and flow stations have recently been prime targets for oil thieves.

Currently, Nigeria lacks a proper digitalized system for monitoring the metering of crude oil produced for export. The new metering system aims to rectify this deficiency, significantly boosting crude oil production and enhancing federation revenue.

Lokpobiri emphasized the project’s groundbreaking nature, stating, “This is the first time in the history of the country where a flow station will be having a digital metering system.”

He also noted that the metering project aligns with the government’s agenda to promote transparency and accountability in the oil and gas sector.

Additionally, the federal government is implementing a tracking system to monitor Nigeria’s crude oil from extraction to its final destination.

Lokpobiri explained, “If crude oil is loaded from the cargo terminal, 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.”

He underscored the importance of oil revenue for addressing Nigeria’s economic and social challenges, stating, “Oil is still the fastest way to correct the funding we need to address our economic and social problems. One of the steps taken as a government is to ensure proper accountability, and that is why this project was awarded to be delivered within 180 days.“