BY FESTUS OKOROMADU
The Chief Executive of the Nigerian Upstream Regulatory Commission, Gbenga Komolafe, said 40 percent of the volumes credited to crude losses in the Nigerian petroleum industry is traceable to inaccurate measurement and not theft as often reported.
He blamed what he called metering errors for huge figures reported as oil theft in the country, stressing that the Commission will ensure only Original Equipment Manufacturers licensed agents will henceforth be responsible for deployment and maintenance of metering facilities.
The NUPRC boss stated this in Lagos while delivering a speech at the Petroleum Club Quarterly Dinner, at the weekend. He also said the revelation follows a forensic audit conducted by the Commission covering the period January 2020 to November 2022 on crude theft numbers.
A statement signed by Komolafe, said the Commission undertook the audit to ascertain the accuracy of the stolen volume of crude oil within the reference period “The Commission is committed to dealing with the issue of metering errors by ensuring that Original Equipment Manufacturers (OEMs) licensed directly as agents of the Commission will be responsible for deployment and maintenance of metering facilities across Nigeria’s oil and gas facilities, for transparency in hydrocarbon accounting.
“The reform measure adopted by the Commission offers a paradigm shift from the trajectory in Nigeria’s hydrocarbon measurement since oil was discovered in Nigeria in Oloibiri in 1956; and is aimed at ensuring that no one becomes a judge in his own case. “Admittedly, one major area of value erosion in the industry is the menace of crude oil theft. Our records indicate that the menace of oil theft has negatively impacted the oil and gas sector for about two decades with attendant huge financial losses to our nation,” he said.