The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has countered its sister regulator, the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s (NMDPRA) allegation that ExxonMobil was lifting butane illegally at Bonny River Offshore Terminal (BRT).
Recall that the NMDPRA, in letters to the Ministry of Petroleum Resources and Chief of Defence Staff, Gen Lucky Irabor, had alleged that ExxonMobil Corp was involved in the illegal lifting of petroleum products from the BRT.
However, NUPRC chief executive, Engr. Gbenga Komolafe, swiftly countered the NMDPRA allegation insisting that ExxonMobil’s operations at BRT was duly approved by the upstream regulator.
In a statement on Wednesday, Komolafe said, “Our attention has been drawn to some publications in the media between June 12 and 13, 2023, alleging 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.
“Being the regulator statutorily entrusted with the technical and commercial regulation of the upstream sector in Nigeria, it has become necessary for the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to state the true position regarding the transaction referred to.
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 granted approval accordingly.
“Consequently, Exxonmobil applied and obtained necessary clearance from NUPRC for the lifting of 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 Certificate of Quantity and Quality (CoQ), as statutorily required for the fulfillment 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 statutory mandate of the Commission as the technical and commercial regulator of the petroleum upstream sector in Nigeria, as stipulated by law. The Commission is not aware 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,” Komolafe stated.
The NUPRC chief executive recalled that the 9th Senate had 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.
He said that following the conclusion of its investigation and presentation of its findings on the floor of the Senate on the 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. The resolution was sent to the President of the Federal Republic of Nigeria, Minister of State, Petroleum Resources, NUPRC, NMDPRA and all relevant stakeholders in the oil and gas industry in Nigeria.
“The President sought the opinion of the then Attorney General and Minister of Justice, who after a review concurred with the Senate resolution and reaffirmed that the said resolution is in line with the letter and spirit of the PIA, 2021 which seeks to promote ease of doing business and investments and enhance transparency of hydrocarbon accounting.
“Subsequently, the former President, Muhammadu Buhari, approved the Senate resolution and explicitly directed immediate compliance with the resolution, insisting that NUPRC is the sole 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 directive was sent to all relevant MDAs and stakeholders for compliance,” he added.
According to him, arising from the above, the NUPRC also notified industry operators and relevant stakeholders of the Presidential directive and its readiness to immediately assume full regulatory oversight.
“We wish to assure industry players of regulatory certainty and commitment of NUPRC to discharging its responsibilities towards enhancing ease of doing business, facilitating investments, stability and predictability in the Nigerian upstream petroleum industry,” Komolafe stated.
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