The Federal Government has announced plans to establish reliable database to determine appropriate tariff methodology for transportation and bulk storage of crude oil and natural gas in the country.
The Authority Chief Executive (ACE), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Mr Farouk Ahmed stated this in a statement by Kimchi Apollo, General Manager, Corporate Communications, NMDPRA, on Sunday in Abuja.
According to the statement, Ahmed revealed this at the 2022 Petroleum Liquid Inventory Reconciliation Exercise held from Feb. 6 to Feb. 10, in Lagos.
He said the exercise involved the NMDPRA, Nigerian Upstream Petroleum Regulatory Commission, Crude Oil and Gas Export Companies, Central Bank of Nigeria, and the Nigeria Extractive Industries Transparency Initiative (NEITI).
Represented by Mr Ogbugo Ukoha, Executive Director, Distribution Systems, Storage, Retailing Infrastructure (DSSRI), Ahmed said the expanded data ecosystem would cover petroleum liquid volumes evacuated by trucking, barging and pipelines.
It will include a data system on terminal receipt volumes and terminal stock records, crude oil inventory records per company, per terminal, quantities delivered to and received into refineries.
It will also include quantities evacuated to other midstream storage facilities, export permit volumes as well as actual export volumes per company, per terminal.
On the reconciliation exercise, the NMDPRA Boss said it was scheduled to establish and authenticate a common data on midstream statistics relating to crude oil, condensates, natural gas and its derivatives.
He added that the reconcile data would provide the basis for the administration of petroleum liquid supply license and guide the appraisal of licenses, authorisations and approvals issued in the midstream sector relating to petroleum transportation, storage and exports.
This reconciliation will be beneficial to our stakeholders, in that, the dataset will also be of interest for NEITI audit, OPEC questionnaire and Joint Oil Data Initiative. It will also assist the National Assembly in its oversight function.
Similarly, it can be used by security agencies for investigations and the Federal Ministry of Finance for monitoring the repatriation of export proceeds and royalties remittance by exporters of crude oil and natural gas.
Ahmed said the Authority, as the custodian of petroleum products data bank would continue to ensure the provision of credible, reliable data for all petroleum operations in the country.
The Petroleum Industry Act 2021 (PIA) mandates the NMDPRA to periodically reconcile data on crude oil terminal receipts, exports, refinery delivery, Oil and Gas transportation, and other related statistics that are of interest to the Federation as this directly affects royalties being remitted.
