Realising the huge loss of revenue from crude oil production in Nigeria due to inaccurate metering systems, the Federal Government would engage officials of the Department of Weights and Measures from Ministry of Commerce to perform their duty by ensuring accurate record and measurement as well as volume of crude oil at various terminals.
The Permanent Secretary of Ministry of Commerce and Industry, Dr. Abubakar Mohammad disclosed this at a stakeholders meeting to fast track the granting of permits for Crude Oil/Gas and Petroleum Exports.
He stated this during a meeting of officials of the Federal Ministry of Commerce and Industry, Ministry of Petroleum Resource and Oil Companies held at the Ministry’s Conference Room in Abuja.
He said that Ministry of Commerce and that of Petroleum has taken responsibility to block all loopholes that facilitate loss of revenue to Federal Government. He said: “It is our duty and responsibility to know the quantity of fuel lifted at the terminals.”
It would be recalled that after the abolition of Export license following the introduction of Trade Liberation policy of the federal government, the need to control and monitor what was going on in the oil industry became imperatives. The government therefore introduced the issuance of export clearance letter to be issued by Ministry of Commerce and Industry to bonafide crude oil/gas producing/export and petroleum products marketing companies.
Since 1989 the Ministry of Commerce and the Ministry of Petroleum Resource met to streamline the issuance of permit with understanding that clearance for crude oil and gas export applications will be on quarterly basis, while the products will be on batch-by batch basis.
A representative of Department of Petroleum Resources (DPR) Mr. Ogun Paulinks stated that the department was taking care of late submission of application forms and that all the oil companies has agreed to collect forms early to submit to (DPR) early for processing and onward transmission to Federal Ministry of Commerce and Industry.
At the end of the meeting, the stakeholders and officials of government agreed that late submission of application would be curtailed by adhering strictly to collection and submission of forms by July. All oil companies are expected to submit their status report to FMC&I and copy DPR. The stakeholders meeting will hold bi-annually.
The Federal Ministry of Commerce and Industry has the statutory responsibility for issuing permits for lifting of crude oil and different types of Gases namely: National Gas Liquid (NGL). Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG) as well as Petroleum products Exports by deserving oil companies.
In attendance at the stakeholders meeting were representatives of Federal Ministry of Commerce and Industry, Nigeria Liquefied Nature Gas (NLNG), NNPC, SPDC/SNEKPCO, NDPR, DPR, Eleme Petrochemicals, FAMFA Oil LTD, MONI PISCO LTD, SAPETRO, WALTERSMITH PETROMAN OIL LTD, MOBIL Producing Nigeria. Nig-AGIP OIL COMP. Others were ATLAS Petroleum, Global Gas & REFNG LTD, CHEVRON, AMIRI, LUBCON LIMTED, PAN OCEAN, TOTAL, MIDWESTERN OIL & Gas Com. and Pillar oil limited as well PETROBAS.