The Federal Government’s recent announcement to install 186 meters at various flow stations has raised significant questions and a call for clarification from the Minister of Petroleum.
Flow stations, which are essentially tanks where crude oil is stored as it flows through pipelines awaiting export, are managed by international oil companies (IOCs) who oversee both the pipelines and flow stations.
Dr. Olisa Agbakoba, Senior Partner at Olisa Agbakoba Legal, has pointed out that if the FG intends to place meters at these flow stations to monitor crude oil production for export, it implies that currently, only the IOCs have accurate data on Nigeria’s daily crude oil exports. This lack of transparency raises serious concerns about who really controls the country’s oil resources.
To illustrate the problem, Dr. Agbakoba compares it to buying 10 liters of petrol from a fuel station without a meter; without measurement tools, determining the exact amount sold is impossible.
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This analogy underscores potential gaps in accountability and monitoring within the current system.
The Minister of Petroleum’s announcement confirms suspicions that the oil companies have significant control over Nigeria’s crude oil resources and revenue.
Dr. Agbakoba thanks the Minister for bringing this issue to light and urges him to take decisive actions to protect Nigeria’s crude oil resources from being dominated by the oil companies.
There is a pressing need for measures that ensure transparency and fairness in Nigeria’s crude oil production and export processes. The public and stakeholders alike are looking to the Minister of Petroleum for assurance and action in addressing these concerns.