From Okwe Obi, Abuja
The Federal Government plans to spend $ 21 million on crude oil monitoring and metering of 187 flow stations across the country, for proper accountability.
Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, told journalists yesterday in Abuja that the contract was approved by the Federal Executive Council on Wednesday.
According to him, the contract awarded would be for a period of 180 days, adding that the move would enable the country meter about 187 of the flow station.
He said the metering project is in line with the agenda of the government of President Bola Tinubu, to ensure transparency in the oil and gas sector.
“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 avoiding the contract for the metering of our 187 flow stations across the Nigerian.
“By the Nigerian Upstream Petroleum Regulatory Commission in UPRC. UPRC is the apex regulatory agency or commission for the Nigerian oil and gas in the upstream sector. And part of it is to ensure that we have proper accountability.
“Federal Executive Council approves the metering of all our production. And we have 187 flow stations in the country, metered across the Niger Delta area. And there was a contract awarded for us to meet all flow stations.
“So that we will be able to properly account for what we produce and what we export. It is a major development that has never happened in this country. And this project is meant to be completed within six months, within 180 days.
“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 Nigeria is getting to get the maximum value for what we produce.
“The second memo 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 the 160 within 180 days the same period 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 that is why I called it advanced cargo.
“The cost for the contract is about $21 million. You know that the oil and gas sector is critical and transaction tariff is in dollar,” he said.`