DPR to sanction oil producers’ failure to upload production data

Ahmad Shakur
Ahmad Shakur

By Anayo Ezugwu

THE Department of Petroleum Resources, DPR, has threatened to sanction oil producing companies which failed to unload its oil production data into the official platform. Ahmad Shakur, acting director, DPR, said such platform would deepen stakeholders understanding of the operations and relevance of National Production Monitoring System, NPMS, to the nation.

Shakur, who spoke at the sensitisation workshop, organised by the DPR on NPMS for oil and gas operator’s compliance officers in Lagos, said the purpose of the engagement was to ensure full compliance to production and export data upload into the official platform. About 75 compliance officers of oil and gas operators were in attendance at the workshop which centred on NPMS, web-based oil and gas production accounting and monitoring platform.

The acting director, who was represented by Akpomudjere Okiemute, assistant director, management branch of upstream, DPR, noted that oil and gas account for about 90 percent of Nigeria’s revenue. According to him, it is essential that the national government, through the DPR, have firm grip on oil and gas production, transfer to terminal 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. 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.

According to Shakur, NPMS provides an online platform to effectively monitor national crude oil and gas production and exports and that it also improves the consistency and quality of database.

The NPMS, he noted, is a system for acquisition of the production of data from oil and gas facilities in Nigeria to ensure timely and accurate reporting of production figure and export data.

The acting director noted that NPMS benefit includes facilitating production surveillance, production data analysis and forecasting, and the creation of more efficient and robust surveillance of the nation’s oil and gas production and export capabilities.

According to him, it gives potential investors to the Nigerian petroleum industry high confidence and assurance to invest in the industry which operates in transparent mode.

In addition, it also makes the country gain from increased Foreign Direct Investments, FDI, and its inherent micro and macro-economic benefits and that it is expected that all oil producing companies are statutorily required to submit producing 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 that companies are also required to obtain hardware USB security key (dongle key), which enables data submission to the platform and that companies will also submits their daily production report, monthly report on production wells, well test report, lifting reports, daily associated gas and non-gas associated production reports, terminal reports etc.

“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 Section 43 and 52 of the Petroleum (Drilling and Production) regulations of1969 as amended. The agency has set up a compliance team with the task to drive monitor and ensure full compliance with data submission via the platform,

“Operating companies were invited to submit two compliance officers dedicated to handle NPMS mater to ensure continuous upload of production data into the platform as required. Going forward the operators would also be held liable for non-compliance.

“It is expected that at the end of the workshop all NPMS compliance officers will henceforth assume full responsibility on NPMS matters to ensure full compliance through seamless upload of production and export data into the platform,” he said.

– July 19, 2019 @ 14:05 GMT |

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