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.
[Premium Times]