As Nigeria leans towards cleaner energy sources, experts in the oil and gas sector, have advised the federal government to prioritise accurate hydrocarbon measurement, stating that it is critical for revenue generation.
Last year, the Nigerian Upstream Regulatory Commission (NUPRC) said that approximately 40 percent of the volumes of crude oil losses in the Nigerian petroleum industry are due to measurement inaccuracies and not theft.
Chairman of the Nigerian Hydrocarbon Measurement Expert Committee (NiHMEC), Mr. Osten Olorunsola, who gave the recommendation at a press conference in Abuja recently, said the focus on measurement and accounting is often neglected. He added however, that without it, proper accountability is impossible.
Olorunsola, also unveiled plans for the committee’s upcoming fourth annual conference holding in Lagos in October.
Highlighting the technical complexity and niche nature of hydrocarbon measurement, Olorunsola stressed the conference’s role in convening policymakers, regulators, and industry practitioners to collaboratively address challenges and innovate solutions.
He said: “Measurement as well as the accounting of it seems to be one area that almost does not bubble up to the surface. People want to see all the big stuff, exhibitions and all that, but, unfortunately, we all know that whatever does not get measured really does not get properly accounted for.
“And so, yes, we are doing a lot of measuring and trying to account, but there is always this gap in terms of the accuracy, in terms of the precision. And how do you then know that you can even do better if you do not even measure at all? And it is not new to us in Nigeria. Internationally, the measurement of hydrocarbons, whether it is oil or gas, has always been a niche area of our business. It is not like drilling wells or laying pipelines. No, it is a niche area, and it is highly technical. So somehow, not too many people rush into those areas.
“And so we have tried four years ago to basically start that advocacy, but more than advocacy is actually to bring people together to identify the gaps and then begin to co-create solutions. like I already mentioned. So, yes, it is a platform for engagement. It is a platform for networking. It is a platform for people to also air out their challenges, and then we will have a discussion around how to then solve those problems together. It’s even much more critical as we now move towards gas, because
“I think it was like three years ago we declared a decade of gas in Nigeria, so we are already on that journey right now. Measurement of gas molecules is totally different from the way you do for liquids.
“It is even much more technically challenging. So as we do all that, and do not also forget the link between gas in Nigeria and energy transition, all efforts to decarbonize and all that. So measurement has to be top on the agenda, not just because you want to report, but actually really you want to be precise in terms of your revenue generation as a country.
“And if there is anything, any big problem we have today in Nigeria, I think it is revenue. If somebody can just put $20 billion now in our foreign reserves, a lot of things will just die down overnight. That’s really the problem.
“So we think as a body, bringing this niche area of our business into the fore, we certainly will be contributing quite a lot to Nigeria’s revenue generation.”
Source: THE SUN