The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), has clarified that it approved the lifting of petroleum products by ExxonMobil at Bonny Terminal, Rivers State.
The NUPRC Chief Executive, Gbenga Komolafe, disclosed this in a statement on Wednesday.
The clarification followed claims to the contrary by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which had written to the Nigerian military alleging the illegal lifting of petroleum products by ExxonMobil at Bonny Terminal, Rivers State.
In the letter dated June 8, and addressed to the Chief of Defence Staff, Lucky Irabor, NMDPRA alleged that an illegal petroleum lifting operation was taking place at the Bonny River Terminal.
The letter, signed by the Authority Chief Executive, Farouk Ahmed, accused ExxonMobil of lifting Butane at the terminal with a vessel marked, Barumk Gas, without the agency’s authorisation or participation.
However, Komolafe said ExxonMobil applied and obtained necessary clearance from the NUPRC to lift 12,600 metric tonnes of Butane aboard a vessel named Barumk Gas on May 26.
He said the operation was legitimate and in line with the Commission’s statutory mandate as the technical and commercial regulator of the upstream petroleum sector in Nigeria, as stipulated by law.
“Our attention has been drawn to some publications in the media between June 12 and 13, 2023, alleging the illegal lifting of Butane at the Bonny River Offshore Terminal (BRT) by ExxonMobil.
“The publications quote a sister regulatory agency, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), as the source of the allegation,” the statement said.
It is important to state that ExxonMobil formally applied to NUPRC for approval of its operations as an integrated operation, in line with Sections 8(d) and 318 of the Petroleum Industry Act, 2021.
Regulatory approval
Komolafe noted that being the regulator statutorily entrusted with the technical and commercial regulation of the upstream sector in Nigeria, it became necessary to state the actual position regarding the transaction referred to.
The statement reads: “It is important to state that ExxonMobil formally applied to NUPRC for approval of its operations as an integrated operation, in line with Sections 8(d) and 318 of the Petroleum Industry Act, 2021.
“Following a careful evaluation of the request, NUPRC approved accordingly.
“ExxonMobil applied and obtained necessary clearance from NUPRC to lift 12,600 metric tonnes of Butane aboard a vessel named Barumk Gas on May 26, 2023. Barumk Gas berthed at the loading jetty at BRT on June 7, 2023.
“Loading operation commenced and ended on June 8, 2023, after which an official of NUPRC on site (at the BRT) issued a Certificate of Quantity and Quality (CoQ), as statutorily required for the fulfilment of requirements of accurate hydrocarbon accounting, reporting and ability of the vessel to sail to its delivery destination.
“This is in line with global best practice.
“NUPRC wishes to state categorically that the said operation was legitimate and in line with the Commission’s statutory mandate as the technical and commercial regulator of the petroleum upstream sector in Nigeria, as stipulated by law.
The commission said it is unaware of any illegality in the said transaction, and none was committed by either ExxonMobil Nigeria and its affiliates or the NUPRC as an agency of government.
“It would be recalled that the 9th Senate set up an ad hoc committee to investigate oil lifting, theft and the impact on petroleum production and revenues on the heels of the growing spate of crude oil theft in the upstream petroleum sector.
“Following the conclusion of its investigation and presentation of its findings on the floor of the Senate on November 7, 2022, the committee of the Whole passed far-reaching resolutions, amongst which was the need for streamlining operations of MDAs at the crude oil export terminals in Nigeria.
“In line with Section 7(ee) of the Petroleum Industry Act, 2021, the Senate resolved that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) should assume full regulatory oversight of all existing crude oil export terminals.”
Komolafe also clarified that following the adoption of the Senate resolution and subsequent approval by the Former President Muhammadu Buhari, NUPRC was given the sole authority and only regulatory entity to regulate and monitor activities of all existing crude oil export terminals in Nigeria, in line with the relevant section of the PIA, 2021.
The statement continued: “The directive was sent to all relevant MDAs and stakeholders for compliance.
“Arising from the above, the NUPRC also notified industry operators and relevant stakeholders of the Presidential directive and its readiness to assume full regulatory oversight immediately.
“We wish to assure industry players of regulatory certainty and the commitment of NUPRC to discharging its responsibilities towards enhancing the ease of doing business, facilitating investments, stability and predictability in the Nigerian upstream petroleum industry.”
