In a major bid to curb oil theft and boost revenue in the Niger Delta region, the Nigerian government has approved a $21 million contract to install meters in 187 flow stations across the region. The Minister of Petroleum Resources (Oil), Senator Heineken Lokpobiri, made the announcement at a press conference in Abuja on Friday.
The installation of meters is expected to improve oil production and increase revenue to the federal account. The project, which has a completion period of 180 days, is part of a broader effort to ensure transparency and accountability in the country’s oil industry.
Another contract has been approved to enable the government to track advanced cargoes, allowing it to monitor the movement of Nigeria’s crude oil from loading terminals to destinations. This move is aimed at addressing the issue of oil theft, which has long plagued the country.
According to Senator Lokpobiri, the government’s primary objective is to increase production and improve revenue. Oil remains a crucial source of funding for Nigeria, and the government is taking steps to optimize its potential.
The installation of meters and tracking system will provide a comprehensive database on the movement of Nigeria’s crude oil and establish a tracking center for crude oil exports. This will help investors gain confidence in the Nigerian oil industry, leading to increased investment and economic growth.
The Minister also confirmed that the ongoing divestment by International Oil Companies (IOCs) of their onshore assets is proceeding smoothly, a development that is not unusual in any sector. The government expects major investment decisions worth tens of billions of dollars in the coming months.
The measures are seen as crucial steps towards reforming Nigeria’s oil industry and ensuring that the country derives maximum benefits from its oil resources.
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