The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has received the final Engineering Audit report on upstream measurement systems from PE Energy, marking a critical step toward real-time oil production tracking and transparency in Nigeria’s oil sector.
The audit, which was approved by the Federal Executive Council in 2024, was designed to overhaul Nigeria’s metering infrastructure using advanced technologies, in line with the requirements of the Petroleum Industry Act (PIA) 2021.
Commission Chief Executive, Engr. Gbenga Komolafe, emphasized the significance of the report, saying: “This marks a turning point in how we manage and monetize our most valuable resource. We are committed to fully implementing the recommendations.”
The report provides a baseline inventory of measurement equipment, identifies infrastructure gaps, and recommends interventions including equipment upgrades and new installations. It also introduced a competency transfer program aimed at reshaping regulatory culture within the Commission.
The audit included on-site inspections, evaluation of all upstream metering systems, and advisory services to optimize oil measurement in regions with limited infrastructure.Chairman of PE Energy, Daere Akobo, said the initiative sends a clear message of reform:“It seeks to overhaul how oil production is measured and monitored, sending a clear message that a new era under the Petroleum Industry Act has begun, where accuracy, accountability, and transparency are non-negotiable.”
The initiative comes amid ongoing concerns over transparency in Nigeria’s oil and gas sector. The Nigerian Extractive Industries Transparency Initiative (NEITI) recently reported that Nigeria lost an estimated 300,000 barrels of crude oil daily in 2024 due to theft and pipeline vandalism.
NEITI warned that unless urgent reforms are enforced, such losses could worsen by the end of 2025. Meanwhile, the World Bank and the Extractive Industries Transparency Initiative earlier revealed Nigeria had recovered $3 billion through transparency-focused reforms, with an estimated $20 billion still unaccounted for.
NUPRC reaffirmed that the audit is not just a technical upgrade but a strategic move to protect Nigeria’s oil wealth and ensure optimal revenue generation. “This is about safeguarding our commonwealth and enforcing accountability,” the Commission stated.
