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DPR outlines achievements

DPR outlines achievements

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The Department of Petroleum Resources (DPR) has unveiled its achievements targeted at boosting the industry and making its operations transparent and accountable.

The achievements include the establishment of technologies that will track online/real time of production volumes from the oil fields, terminals, the vessels taking them out for exports and their destinations.

DPR monitors 19 oil fields online.The technology enables the Federal Government to know oil production. It also tracks movement of vessels bringing in petroleum products and ensuring there is no round-tripping of imports and sharp practices which substantially push up the estimated daily fuel consumption in the country and the subsequent subsidy payment.

Some of the achievements include early oil lease renewals and recovery of royalties as well as reduction of cost of crude production to make Nigeria be at the same level with other oil-producing countries that have reduced their cost of oil production, among others.

Minister of State for Petroleum Resources Dr. Ibe Kachikwu, who unveiled the achievements in Lagos, said the technologies introduced by the DPR include the Crude Oil and LNG Tracking (COLT), adding that the achievements were worth celebrating.

Kachikwu said the achievements were part of the results of reforms in the industry. He said: “I intervened with the approval of President Muhammadu Buhari to steward and supervise a lot of the interventions and changes in the oil and gas sector and the DPR and others have worked collaboratively with me in the last three and half years to see to some of the steps I have taken both the time I was the Group Managing Director of NNPC, but now I’m largely focused on the regulatory aspects of the sector.

“My clear mandate when I became the Minister of State was to change the oil industry because we were deeply worried by what seemed like a value dip in the industry and the corruption that was all over the place and to track our resources, among others.

“Therefore, we have launched a series of computer-based applications which will enable us to track volumes of crudes produced from various terminals and how those volumes or products are moved, whether they are going to vessels and where those vessels are going to. It is a vessel-tracking mechanism so that at any given point in time, you can tell on real time basis what the country has produced for the very first time. These applications will tell where the vessels have gone to in terms of export and say whether they discharge at the given points. We will also be able to say on forensic basis whether there are some suspicious movements of the vessels when they have products in them. We have also extended it to the downstream sector to capture everything that is brought into this country in terms of importation of refined products and track how they are distributed within the country. So, for the first time in this country, we have holistic IT data-based applications that enable us to do that.

“We also launched the benchmarking system to track expenses and see how we can continue in our process to pull down the cost of producing oil in this country which is a major challenge for us. Given the oscillating price of oil globally unless we are able to do this, we produce all the oil and no make no money out of it. So, this is very helpful to us and we will be able to challenge the oil companies to match the very best practice internally and collectively match the best practices externally in terms of oil pricing. We have explained to you what we have done in terms of early renewals of oil leases and what we generated both in terms of forcing people to be concurrent on payment of outstanding royalties and what we generated in terms of current licences and early renewal basis.’’

The minister added: “The few interventions that we have had include National Production Monitoring System (NPMS) which focus includes using online to gather data. We have been able to track online/real time data of what our productions are and so we are now in the position to say what the country’s production is. We have also had the COLT, which is basically tracking of crude oil and liquefied natural gas (LNG).”

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