The Nigerian Upstream Petroleum Regulatory Commission, NUPRC, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, have disagreed over the body that regulates operations at the Bonny River Terminal.
The disagreement follows an allegation by the NMDPRA that locks placed on the terminals were illegally broken by ExxonMobil which enabled oil theft at the facility.
NUPRC is claiming that having granted ExxonMobil the licence to lift Butane at the Bonny River Terminal oversee the operations at the terminals, it is its responsibility.
NMDPRA, on the other hand, had in a letter to the Chief of Defence Staff claimed that ExxonMobil illegally destroyed the locks on the sea-line valve whose keys are in its custody.
“The vessel Barumk Gas is lifting Butane at Bonny River Terminal without the authorisation or participation of the Nigerian Midstream and Downstream Petroleum Regulatory Authority which is the agency of government statutorily responsible for regulating operations at the terminal,” NMDPRA Chief Executive, Engr Farouk Ahmed stated in the letter.
“This unlawful action is being facilitated with the active connivance of ExxonMobil who have illegally destroyed the locks on the sea-line valve whose keys are in the custody of the Authority.
“The actions of Exxon Mobil and Barumk Gas constitute economic sabotage, criminal damage and theft of Nigeria’s national resources,” he added.
However, NUPRC in a statement yesterday claimed that it has oversight control of the terminal following approvals from the Senate and the former President Muhammadu Buhari, adding that the actions of ExxonMobil and Barumk Gas were legitimate.
According to the Commission, “The Senate, in line with section 7(ee) of the Petroleum Industry Act, 2021, 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, GCFR, 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”.
NUPRC explained that “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 upstream sector in Nigeria as stipulated by law.
‘‘The Commission is not aware of any illegality in the transaction and none was committed by either ExxonMobil Nigeria and its affiliates or the NUPRC as an agency of government.”
