PIA: NUPRC, Not Transport Ministry Has Powers To Regulate Advanced Cargo Terminals-Investigation

The Ministry of Transportation has no powers under the provisions of the Petroleum Industry Act to carry out regulation on Advanced Cargo terminal, THE WHISTLER investigations have revealed.

This is just as facts have emerged as to how former President Muhammadu Buhari’s government made a last-minute rush to award metering contract without recourse to the provisions of the Petroleum Industry Act.

In March 2023 which was two months to Buhari’s handover to the newly elected president, Bola Tinubu, the government awarded Antaser Nigeria Limited a contract to implement a Cargo Tracking System for 15 years.

Before the contract approval, the National Information Technology and Development Agency (NITDA) issued a certificate of clearance on 25 January 2023.

Based on the terms, 15 Nigeria Crude Oil Terminals (FPSO PLATFORMS), 6 FSO Platforms and 5 Crude Oil Terminals (Land Platforms) will have electronic magnetic flow metres connected to Antaser system.

The metering contract is an initiative that would curb crude oil theft. About 40 per cent of what is adjudged as crude oil theft is a result of metering inadequacies.

However, the lack of transparency in the contract process and the lack as well as the non-adherence to the Petroleum Industry Act led the Tinubu administration to award the contract to a new firm in line with extant laws.

The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, had announced on July 12, 2024, that the Federal Executive Council approved the award of the metering contract for 187 crude oil flow stations in the Niger Delta region.

The new contract was awarded to P-Lyne Energy Limited, and the government mandated the contractor to deliver in 180 days.

The company would provide technology to monitor the loading of all crude oil cargoes in the country and track them to their destinations.

A source who spoke to THE WHISTLER said the Ministry of Transport does not have any business with wet cargo, adding that the PIA empowered the NUPRC to establish a regulation which is termed- the Nigerian Upstream Petroleum Measurement Regulation for the purpose of issues around wet cargo and metering among others.

The source familiar with the previous contract award to Antaser said that the parties that approved the contract used their position because they were in the last government.

The source revealed that they manoeuvred their way and connived with the Bureau of Public Procurement (BPP) to approve the contracf.

According to the source, those with vested interests in the contract award failed to understand that the NUPRC has a statutory mandate through the Advance Cargo Direction Regulation.

“So, what they did now has no basis in law. They just used their political leverage,” the source said.

Another source who spoke to THE WHISTLER on the matter revealed that the former Chief of Staff, Professor Ibrahim Gambari, awarded part of the contract to a family member.

“So, that was how they did the whole shenanigan then,” the source added.

Findings reveal that the metering project awarded by the Buhari government has been stalled due to the lack of expertise of the parties involved.

“The thing cannot move forward because they don’t even have a clue. How do they want to do Advanced Cargo when they don’t control the terminal?” the source added.

“It is the commission that statutorily oversees the terminal for the country. It is from the terminal that they will load the crude. So, the Ministry of Transportation doesn’t have any insight into the terminal.

“It is now that the government has gotten it right by allowing the project to be done based on statutory PIA requirements that say crude should be measured accurately and that is why the commission passed the Upstream Regulatory Commission Advanced Cargo Regulation in line with the PIA.

“And now, to operationalise that, FEC has approved that the provisions of the PIA should be implemented. It is now that the right thing is being done as against the political approval they did in the last government, ” the source added.

The source explained that with the development, the government will not spend money, adding that the government only needs to approve while the NUPRC goes ahead with licensing.

“The government will approve Engineering Integrity Audit of the existing metering process and study fee for the Advanced Cargo Regulation after that, the Commission will go on and licence Original Equipment Manufacturers to go ahead and provide service,” the source said.