The Federal Government has defended the delay in the commencement of operations at state-owned refineries, notably the Port-Harcourt Refinery which was hastily commissioned in 2023 before its completion.
Citing the example of the Dangote Refinery, also commissioned in a hurry at the end of former president Muhammadu Buhari’s administration, Minister of State for Petroleum Resources, Heineken Lokpobiri, stated that the delay in starting the refinery was justifiable.
Speaking in Abuja on Friday, Lokpobiri announced the awarding of a $21 million, N32.7 billion contract for the installation of meters at 187 flow stations in the oil-producing region.
He emphasized that the national oil company was committed to starting the refinery, noting that the facility was nearing the final stages of its rehabilitation.
Lokpobiri highlighted that confidence was returning to the oil sector and that the installation of the meters would help Nigeria account for its oil production and losses.
He said, “For many years, Nigeria has not been able to account for the exact figure of oil production and theft. While the current move may help, the country may not be able to account for the production at wellheads and what may get stolen before the crude gets to flow stations.”
Admitting uncertainty between the wellheads and flow stations, Lokpobiri mentioned that the government was focusing on metering the 187 flow stations and would later collaborate with the Nigerian Upstream Petroleum Regulatory Commission to extend this to the wellheads.
He explained that all production flows to the flow stations before export, so the initial focus was on metering at this stage.
He noted issues with actual production and export figures and stated that the current initiative would resolve these discrepancies by using technology to enhance transparency and reduce human error.
Regarding divestments, Lokpobiri said the process was proceeding smoothly, involving due diligence by the NUPRC before recommendations are made to the ministerial level and ultimately to the President for final approval.
He stated, “The government is taking proactive steps to ensure these assets are managed legally and efficiently.”
Lokpobiri also mentioned that the metering contract would be completed in 180 days and that a contract had been awarded to implement an advanced cargo tracking system within the same timeframe.
This system, he explained, would monitor crude oil from loading to its final destination, addressing issues like oil theft and increasing federation revenue through digital technologies.
