Mkpoikana Udoma
Port Harcourt — An energy expert, Dr. Joseph Obele, has commended the federal government’s approval of a $21 million project to install digital meters at 187 oil flow stations across the Niger Delta region, describing it as a “bold step” in the fight against oil theft.
Recall that the federal government in a bid to tackle crude oil theft and diversion, recently approved the metering of 187 flow stations across the Niger Delta region and the implementation of an advanced cargo tracking system.
The metering project, which is being coordinated by the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, is expected to be completed by the end of the year, while the advanced cargo tracking system would monitor oil cargo from loading to final destination, in order to reduce crude oil diversion.
Reacting on the development, Obele, who is an IPMAN stakeholder and lecturer at Ignatius Ajuru University of Education, lauded the government’s commitment to tackling the long-standing issue of oil theft, which has led to significant revenue losses for the country.
According to him, the digital metering system will bring transparency and accountability to the industry, ensuring accurate measurements and preventing overloading, as the project was a game-changer in the fight against oil theft and corruption.
The energy expert noted that the manual loading system, which has been in place since the discovery of crude oil in Nigeria, has allowed for widespread corruption and theft.
Obele expressed optimism that the new digital metering system will help Nigeria meet its OPEC quotas and increase revenue.
He urged the government to remain vigilant and ensure the successful implementation of the project, warning that beneficiaries of the manual system may attempt to manipulate the digital meter system.
He said, “The Nigerian government’s approval of $21 million for the metering of 187 oil flow stations in the Niger Delta region is a commendable step towards promoting effective monitoring of crude oil production and distribution. This move indicates a commitment to fighting corruption and should be applauded.
“Until now, Nigeria’s crude oil sales have been plagued by inaccurate volume measurements, with no digital system in place to monitor loading. The manual loading system in use since the discovery of crude oil in Nigeria has allowed for widespread corruption, with vessels often loading more oil than paid for.
“The introduction of digital metering will bring much-needed transparency and accountability to the industry. The system will ensure accurate measurements, prevent overloading, and eradicate corruption at loading locations. The benefits of this system include improved inventory management, increased revenue, and meeting OPEC quotas.
As a stakeholder, I commend the government for taking this bold step. However, I also caution that the beneficiaries of the manual system may still attempt to manipulate the digital meter system. Therefore, vigilance is essential to ensure the success of this initiative.”
