Pipeline vandalism. PHOTO: energybizdigest
– DPR clarifies unrefined accounting process
Nigeria’s consistent crude oil loss has actually been connected to land terminals, as the Department of Petroleum Resources (DPR), stated oil theft throughout overseas terminals are nearly difficult.
In Between 2009 and 2018, Nigeria lost about $43 billion to crude theft as well as domestic and refined petroleum items, the Nigeria Extractive Industries Transparency Initiative (NEITI), had actually said.
The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mele Kyari, put crude oil losses for 2019 alone at about $750 million.
If such leakages were to be saved, the $43 billion would have been enough to fund the 2021 national budget of $35 billion (N13082 trillion) without borrowing and supply additional $8 billion capable of constructing almost 2,733 km of the standard-gauge rail line that can connect Lagos to Kano without turning to borrowing from nations like China.
While clarifying the process used for accounting of unrefined production in Nigeria, Director of DPR, Sarki Auwalu, divulged that many incidents relating to oil theft take place from the land terminals.
A statement released by Head, Public Affairs, DPR, following a meeting with the House of Representatives Ad-hoc Committee on Oil Theft, in Abuja, stated the procedure utilized in reaching the level of oil production and lifting in the nation.
Being the market regulator, DPR’s duty included tracking of petroleum production and lifting. Nigeria has over 30 terminals, 5 of which are on land.
Auwalu stated most of the thefts come from land terminals because the land producers need to utilize pipelines to carry the crude into the terminals for export.
” At the same time, you have a lot of 3rd party interference, which results in volumes that are being taken and are stolen.
” And the theft volume, if not all, originates from the land terminals. The overseas terminals, it is really almost impossible to steal crude from offshore terminals, because it is from the bottom of the sea,” he was quoted.
Auwalu stated identifying the volume of production and lifting starts from the well and the well can not be drilled without understanding the capability of production.
” So, the hydrocarbon accounting in DPR begins from the well.
According to him, the method utilized in hydrocarbon accounting is static measurement and vibrant measurement.
Auwalu stated: “The fixed is the volume that went into the tank that you can dip and know the volume while the dynamic is the volume that goes across the meter.
” We have two type of meters: we have a production meter that you determine the volume of oil produced, and we have a custody transfer meter where you measure the volume of oil that exchanged hands.
” What we do is to take inventory of all wells produced in every field based upon the volume we offer, within which that well can not produce more than that.”
” If you under-produce, you can eliminate the reservoir; and if you over-produce, you can eliminate the tank. All these volume measurements, whether fixed or dynamic, we make a record of them.”
The Committee Chair, Peter Akpatason, decried the impact of crude oil theft, mentioning that it was the duty of all patriotic Nigerians to put an end to the hazard.
Terminals pave method as Nigeria loses $43 b to oil theft
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