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DPR To Shutdown Oil Companies For Failure To Upload Daily Production Figures

The Department of Petroleum Resources (DPR) has warned oil companies not to ignore its directive that their daily production data be uploaded to its platform – National Production Monitoring System (NPSM).

DPR Acting Director Ahmad Shakur warned that failure to comply would attract sanctions.

Shakur, who spoke at a sensitisation workshop organised by the DPR on NPSM for oil and gas operators’ compliance officers in Lagos, said although the government had spent a lot of resources to establish the platform, some operators were not complying with the directive.

Represented by Assistant Director, Management Branch, Upstream at DPR, Akpomudjere Okiemute, oil industry regulator chief said the purpose of the engagement was to ensure full compliance with production and export data upload into the official platform.

He said the NPMS was established to ensure proper book-keeping and  address the controversy trailing the country’s actual oil production. There is  the belief that Nigeria doesn’t know the exact quantity of oil and gas it produces.

The oil and gas industry regulator also warned that, henceforth, any company that not on the NPMS platform will not be allowed to operate. He added that compliance with the submission of the Maximum Efficient Rate (MER) test will be enforced as no operator is expected to produce from any well without conducting the test.  MER test is used to determine the optimal rate a given well can be explored and currently, there are about 2,616 wells producing in the country.

The NPMS is a web-based oil and gas production accounting and monitoring platform, developed by the DPR to track oil production from the various oil terminals in the country and movement of oil export and import vessels. The essence of the NPMS is to ensure timely and accurate reporting of production figures and export data, improve consistency and quality of database and facilitate seamless transfers of oil and gas data to the National Data Repository (NDR), he added.

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He said such collective upload of production data to the platform would deepen stakeholders’ understanding of the operations and relevance of NPMS to the nation. According to him, oil and gas account for about 90 per cent of Nigeria’s revenue. It is, therefore, essential that the government, through the DPR, has firm grip on production, transfer to terminal and exports.

He said: “The NPMS is a web-based platform that provides rapid and efficient electronic data collection database and reporting system, which is envisaged to replace the paper-based reporting. The NPMS project implementation includes two pilot exercises where the DPR collected real-time data at source (one land-based terminal and one Floating Production Storage and Offloading (FPSO).

“The pilot established that independent real-time monitoring improved the quality of surveillance which enabled national rollout to all other terminals during the project implementation phase. The system was also proven to facilitate surveillance, production reporting and forecasting.”

He said NPMS provides effective crude oil and gas production and export monitoring and gives potential investors high confidence and assurance to invest in the industry. It also makes the country gain from increased Foreign Direct Investments (FDIs).

He said companies will also submit their daily and monthly report on production wells, well test report, lifting reports,  associated gas and non-gas associated production reports, terminal reports, among others.

“We have observed over the years that some companies are yet to comply fully with the data submission via the NPMS portal in contravention of the provisions of Sections 43 and 52 of the Petroleum (Drilling and Production) regulations of 1969 as amended. The agency has set up a compliance team to drive monitor and ensure full compliance with data submission via the platform,” he said.

He said NPMS’ key objectives are to provide an online platform to effectively monitor national crude oil to gas production and exports; and provide a system for acquisition of production data from oil and gas facilities in the country, to ensure timely and accurate reporting of production figures and export data. It also aims to improve the consistency and quality of its database; facilitate seamless transfers of oil and gas data to the NDR and monitor production and export activities.

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He highlighted some of the steps taken by the Department to ensure full compliance to NPMS data submission as setting up a compliance team with the task to drive, monitor and ensure full compliance with data submission via the platform. It also tied the NPMS data submission compliance to some of its regulatory processes such as the issuance of export permits, technical allowable and other statutory approvals and permits.

DPR’s Manager, Production and Surveillance, Upstream, Victor Georgeson, explained that NPMS has taken effect and the meeting was to ensure that operators understood the importance of the portal to the government.

“As a country producing oil and gas, we should be able to know at any given time how much oil and gas we have. How much of it we have and we have produced and how much is being exported. Over the years, we have been doing this manually and there are loopholes and you will agree with me that will not be effective, but the new DPR today is emphasising on effectiveness and accountability. We are also going digital and what you are seeing is like a kind of paradigm shift to serve this country very well”, he added.

About 75 compliance officers of oil and gas companies were in attendance.

Source: The Nation

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