Oil Losses: NUPRC Gets Historic Measurement Systems Audit

Emmanuel Addeh in Abuja

To safeguard Nigeria’s commonwealth and enforce accountability in the oil and gas sector, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has received the engineering audit of upstream measurement equipment and facilities in the industry end–of–project report from PE Energy.

Approved by the Federal Executive Council (FEC)  in 2024, the report, a statement from the NUPRC said, is a significant step toward improving hydrocarbon measurement and accountability, essential for ensuring optimal revenue collection within Nigeria’s oil and gas sector.

As mandated by the Petroleum Industry Act (PIA) 2021, the NUPRC is tasked with ensuring that hydrocarbon resources are accurately measured and reported.

According to the upstream regulator, the audit has helped in conducting a gap analysis, delivering a verified baseline inventory of all measurement points and implementing a competency transfer programme for the commission toward reshaping regulatory culture in the upstream sector.

Areas covered by the audit include on-site inspections and evaluation of all upstream metering systems, documentation of both current and ideal measurement points as defined by the PIA.

It also includes development of intervention strategies, ranging from equipment upgrades to new installations, and advisory services to optimise measurement in areas with limited metering infrastructure.

The audit initiative, according to the Chairman of PE Energy, Daere Akobo, is a critical pillar in Nigeria’s broader reform agenda for the oil and gas sector. It seeks to overhaul how oil production is measured and monitored, sending a clear message that a new era under the PIA has begun, where accuracy, accountability, and transparency are non-negotiable.

The NUPRC Chief Executive,  Gbenga Komolafe, who was excited about the development, noted that the results would redefine how Nigeria manages and monetises its most vital natural resource, and pledged to ensure that the recommendations are fully implemented.

Meanwhile, in a pivotal meeting held in Abuja, the NUPRC and NNPC Energy Services (ENSERV), have agreed to enhance their collaboration in the oil and gas sector, expressing their commitment to cultivating a productive and results-oriented partnership that will support Nigeria’s energy objectives.

Komolafe welcomed the delegation from ENSERV, which was at the commission’s headquarters to introduce the organisation’s new management team led by the Managing Director, Sotonye Pinnick.

During the meeting, ENSERV expressed a strong commitment to collaborating with NUPRC, particularly in the exploration of frontier basins. The initiative is seen as crucial for enhancing Nigeria’s hydrocarbon reserves and improving the nation’s energy security.

Komolafe congratulated the new leadership and emphasised the importance of regulatory cooperation as mandated by the PIA, urging ENSERV to stay aligned with global energy transition trends, prioritise innovation and operate with a strong environmental consciousness.

Additionally, he highlighted the necessity of executing their budget plans promptly. The meeting had both parties committing to fostering a productive and results-driven partnership that will support Nigeria’s energy objectives.