Submit Production Data Or Lose Export Permits, FG Threatens Oil Firms
The Federal Government, through the Department of Petroleum Resources, has said oil companies that fail to submit their crude oil production data to the National Production Monitoring System will not be given export permits starting from next year, among other sanctions.
The DPR gave the warning on Thursday in Lagos, describing production data as the key component in fiscal and revenue system generation computations.
“Therefore, the availability and sustainability of reliable production data input enhances the computation efficiency for royalty determination and strategic national revenue projections,” the acting Director, DPR, Mr Ahmad Shakur, said at a sensitisation workshop on the NMPS for operators.
Shakur, who was represented by the Assistant Director, Resources Management branch, Upstream, DPR, Mr Akpomudjere Okiemute, said the engagement with the operators was aimed at ensuring full compliance to production and export data upload into the platform, deepen stakeholders understanding of the operations and relevance of NPMS to the nation.
He said, “Oil and gas earnings account for about 90 per cent of Nigeria’s revenue. It is, therefore, essential that the Federal Government, through the DPR, have firm grip on oil and gas production, transfer to terminals and exports.
“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.”
According to him, the key objectives of the NPMS includes provision of a system for acquisition of production data from oil and gas facilities in Nigeria to ensure timely and accurate reporting of production figures and export data; monitoring of production and export activities, and enhancing the revenue generation drive and policy of the Federal Government.
Shakur said the system was also aimed at improving transparency and accountability in oil and gas operations and management.
He said it would “give potential investors high confidence and assurance to invest in our industry. The country thus gains from increased foreign direct investment and its inherent micro and macro-economic benefits.”
“All oil producing companies are statutorily required to submit production data through the portal to enable the department effect a comprehensive real-time reporting of the nation’s daily production status to government,” he added.
According to him, data to be submitted include daily production report, monthly reports on producing wells, Maximum Efficient Rate results, well test reports, lifting reports, daily associated gas and non-associated gas production reports, and terminal reports.
The DPR boss said, “We have observed over the years that some operators are yet to comply fully with data submission via the NPMS portal in contravention of the provisions of Section 43 and 52 of the Petroleum (Drilling and Production) Regulations, 1969 as amended. The department has, therefore, taken some steps to ensure full compliance to NPMS data submission.”
Shakur said a compliance team had been set up with the task to drive, monitor and ensure full compliance with data submission via the platform.
He said, “Operating companies were invited to submit two compliance officers dedicated to handle NPMS matters to ensure continuous upload of production data into the platform as required. Going forward, the operators would also be held liable for non-compliance.
“DPR would henceforth tie the NPMS data submission compliance to some of its regulatory processes such as issuance of export permits, technical allowable, and other statutory approval/permits. The DPR compliance team is expected to meet with compliance officers quarterly to review compliance level and challenges.”.