Lawyers Demand Installation Of Crude Oil Meters To Prevent Theft At Export Terminals

A group of concerned lawyers have written a petition to the Senate Ad-Hoc Committee on Up Stream Petroleum Sector, demanding the installation of meters at the Ugo Ocha export terminal of OML 42 being operated by NECONDE Energy Limited to avert crude oil theft.

The lawyers, through O. F. Emmanuel & Cohey, in their petition claimed that an average of one million barrels of Nigeria’s crude oil is being taken away monthly without accurate measurement due to the absence of meters at this export terminal.

It was gathered that the OML 42 is located in the swamps of the western region of the Niger Delta, having a total of four flow stations with a combined production capacity of about 30,000 barrels of oil per day.

According to them, since the Ugo Ocha export terminal was established in 2017, NECONDE has intentionally frustrated every effort by the Federal Government to install a metering system also known as the LACT Unit at the UGO Ocha terminal, while they continue to operate in full violation requirements by law for accurate custody transfer measurement at all export terminals.

In the petition signed by the Principal Partner, Oluwatosin F. Emmanuel Esq, they also alleged that as of the time of the petition, there are no meters at the Ugo Ocha export terminal to accurately determine the volumes of Nigeria’s crude oil sold to foreign buyers.

He further stated that an enormous amount of revenue to the tune of $15,000,000.00 (Fifteen Million US Dollars) accruable to the Federal government of Nigeria per month could potentially be lost due to the absence of a functional measurement system for exported crude oil volumes at the terminal.

Oluwatosin said that “the government through its Upstream regulator, NUPRC, recently placed a ban on all crude oil exports from the Ugo Ocha terminal, effectively making Ugo Ocha an illegal export route.

“But the company, NECONDE, continues to violate the subsisting government ban and illegally exports Nigeria’s crude oil from this banned terminal. And at the time of submitting the petition (21st of September, 2022), a foreign tanker “MT COPPER SPIRIT” was at the Ugo Ocha terminal preparing to load Nigeria’s crude oil for export without measurement.

“Copies of the government’s ban on crude oil exports from the Ugo Ocha terminal were attached to the petition by the lawyers and made available at the Senate’s Investigative Hearing on “Oil Lifting, Theft and the Impact on Petroleum Production and Oil Revenues” which held at the National Assembly Abuja on 21st of September 2022.

“The lawyers asked the Senate ad-hoc committee to come to the aid of Nigeria and Nigerians by ensuring that the ban on exports from the Ugo Ocha terminal is enforced and the company, NECONDE, is compelled to install a 1.25 million barrels per day LACT Unit metering system which has already been manufactured, paid for, and approved by the government regulator (NUPRC) for the Ugo Ocha terminal.

“They are praying that the Senate ad-hoc committee should, amongst other things, direct the Nigerian Navy to arrest and detain the vessel “MT COPPER SPIRIT” which is currently lifting oil at the Ugo Ocha terminal, direct the NMDPRA and NUPRC to cancel all barging permits granted to NECONDE and NPDC until a LACT Unit is installed and commissioned at the Ugo Ocha terminal – as directed by NUPRC.

“They should also direct the Nigeria Ports Authority to prohibit the movement of crude oil barges and tankers to and from the Ugo Ocha terminal because the lawyers wondered why and how the government of Nigeria is allowing this illegal lifting of its crude oil resources at OML 42 to continue unabated while complaining to the world that crude oil theft is crippling the nation’s fragile economy.”