DPR threatens to sanction oil producers over non-compliance with data platform
Admin l Friday, July 19, 2019
LAGOS, Nigeria – The Department of Petroleum Resources (DPR) on Thursday said that it would not hesitates to sanction oil producing companies who fail to unload its oil production data into the official platform.
Mr Ahmad Shakur, the acting Director sounded the warning at the sensitization workshop organised by DPR on National Production Monitoring System (NPSM) for oil and gas operator’s compliance officers in Lagos. About 75 compliance officers of oil and gas operators were in attendance at the workshop centered on NPMS, a web-based oil and gas production accounting and monitoring platform.
Shakur, represented by Mr Akpomudjere Okiemute, Assistant Director, Management Branch of Upstream of DPR said that the purpose of the engagement is to ensure full compliance to production and export data upload into the official platform.
The director said that such collective platform would deepen stakeholders understanding of the operations and relevance of NPMS to the nation. According to him, oil and gas account for about 90 per cent of Nigeria’s revenue, it is, therefore, 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 exercise 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.
Shakur said that NPMS provides an online platform to effectively monitor national crude oil and gas production and exports, adding that it also improves the consistency and quality of database.
He said that the NPMS is also provision of a system for acquisition of Production data from oil and gas facilities in Nigeria to ensure timely and accurate reporting of production figure and export data.
The Director said that NPMS benefit includes facilitate production surveillance, production data analysis and forecasting, adding it also create a more efficient and robust surveillance of the nation’s oil and gas production and export capabilities. He said that it also gives potential investors to Nigeria petroleum industry high confidence and assurance to invest in the industry which operates in transparent mode.
He said that the country gains from increased Foreign Direct Investments (FDI) and its inherent micro and macro-economic benefits. Shakur said 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. He said 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.
