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.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said 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 Nigerian Midstream and Downstream Petroleum Regulatory
Authority (NMDPRA) had written to the Nigerian military alleging the illegal
lifting of petroleum products by ExxonMobil at Bonny Terminal, Rivers State.
According to the letter dated 8 June and addressed to the
Chief of Defence Staff, Lucky Irabor, the agency claimed that an illegal
petroleum lifting operation was taking place at the Bonny River terminal.
The letter, signed by the agency’s Chief Executive, Farouk
Ahmed, claimed that ExxonMobil was lifting Butane at the terminal with the
vessel marked Barumk Gas without the authorisation or participation of the
agency responsible for regulating operations at the terminal.
Necessary clearance obtained
In its reaction, Mr Komolafe said 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.
He explained that 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.
Mr Komolafe added that 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 actual 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
approved accordingly,” the statement said.
Consequently, he said 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,” the statement
said.
“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,” it said.
Mr Komolafe said: “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.”
He explained that 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 was in line
with the letter and spirit of the PIA, 2021, which seeks to promote ease of
doing 0business and investments and enhance the transparency of hydrocarbon
accounting.
Subsequently, he said 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.
“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,” the statement
said.
Meanwhile, responding to the allegation in a message to
PREMIUM TIMES Monday morning, a spokesperson for ExxonMobil said the Nigerian
National Petroleum Company (NNPC)/Mobil Producing Nigeria Unlimited (MPN) Joint
entire are carried out in full compliance with the law.
“My response to your inquiry is that all operations of the
NNPC/MPN Joint entire are carried out in full compliance with the law,” Oge
Udeagha, the media and communications manager for ExxonMobil affiliate
companies in Nigeria, said.
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