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NMDPRA expands data ecosystem to cover crude oil

By Kingsley Jeremiah, Abuja
15 February 2023   |   5:19 am
Previously focusing on the regulation of the downstream segment of the nation’s oil and gas industry, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said crude oil data will now be captured by the agency.

Previously focusing on the regulation of the downstream segment of the nation’s oil and gas industry, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) said crude oil data will now be captured by the agency.

The regulator said it would establish accurate and reliable data to determine the appropriate tariff methodology for the transportation and bulk storage of crude oil and natural gas in the country.

The Authority Chief Executive, Farouk Ahmed, while speaking at the 2022 Petroleum Liquid Inventory Reconciliation Exercise, which held in Lagos, said the expanded data ecosystem would cover petroleum liquid volumes evacuated by trucking, barging and pipelines.

The agency disclosed in a release that the exercise involved the NMDPRA, Nigerian Upstream Petroleum Commission, Crude Oil and Gas Export Companies, the Central Bank of Nigeria, and the Nigeria Extractive Industries Transparency Initiative (NEITI).

Ahmed, represented by Executive Director, Distribution Systems, Storage, Retailing Infrastructure (DSSRI), Ogbugo Ukoha said the development would include a data system on terminal receipt volumes and terminal stock records, crude oil inventory records per company, per terminal, quantities delivered to and received into refineries, quantities evacuated to other midstream storage facilities, export permit volumes, as well as actual export volumes per company, per terminal.

On the reconciliation exercise, Ahmed said it was scheduled to establish and authenticate common data on midstream statistics relating to crude oil, condensates, natural gas and its derivatives.

He said: “The reconciled data will provide the basis for the administration of petroleum liquid supply license and guide the appraisal of licenses, authorisations and approvals issued in the midstream sector relating to petroleum transportation, storage and exports.

“This reconciliation will be beneficial to our stakeholders, in that, the dataset will also be of interest for NEITI audit, OPEC questionnaire and Joint Oil Data Initiative. It will also assist the National Assembly in its oversight function.”

He said the initiative could be used by security agencies for investigations and the Federal Ministry of Finance for monitoring the repatriation of export proceeds and royalties remittance by exporters of crude oil and natural gas.

Ahmed reiterated that the Authority, as the custodian of petroleum products data bank will continue to ensure the provision of credible, reliable data for all petroleum operations in the country.

The Petroleum Industry Act 2021 (PIA) mandates the NMDPRA to periodically reconcile data on crude oil terminal receipts, exports, refinery delivery, oil and gas transportation, and other related statistics that are of interest to the Federation as this directly affects royalties being remitted.

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