The federal government has approved a contract for the construction of metering systems for all the 187 crude oil flow stations in the oil and gas industry in the country.
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The flow stations metering project, estimated to cost $21 million, is a major move towards reforming Nigeria’s energy sector, and curbing the high incidences of crude oil theft and accounting inefficiency.
Minister of State for Petroleum Resources (Oil) Heineken Lokpobiri, who made the announcement during a press briefing on Friday in Abuja, said the contract for the project was approved at the Federal Executive Council (FEC) meeting chaired by President Bola Tinubu on Monday.
Lokpobiri said that the contract awarded would be for a period of 180 days, adding that the move would enable the country meter about 187 of its flow stations.
The move is coming at a time when stakeholders in the oil and gas sector had blamed faulty metering procedures, faulty instruments and lack of technology as some of the impediments to the efforts in tackling crude oil theft.
In recent times, pipelines, well heads, and flow stations have been the major targets of oil thieves in Nigeria.
Currently, there is no proper digitalised metering system to monitor and properly account for the volume of crude oil produced in the country.
Speaking on the development, Lokpobiri said that the metering would enable the government to boost crude oil production as well as increase oil revenue.
He put the cost of the contract for the metering project at about $21m, adding that this is the first time in the history of the country where a flow station will be having a digital metering system.
He said the metering project was in line with the agenda of the government to ensure transparency and accountability in the oil and gas sector.
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