- NUPRC says it is the regulator statutorily entrusted with the technical and commercial regulation of the upstream sector in Nigeria.
- Exxonmobil formally applied to NUPRC for approval of its operations as an integrated operation, which was granted by NUPRC
- The commission says it is not aware of any illegality in the said transaction and none was committed by either ExxonMobil Nigeria and its affiliates or the NUPRC as an agency of government.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has addressed the Butane lifting allegations made by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) against ExxonMobil, stating that the operation was approved.
In a statement on Wednesday, the Chief Executive of the NUPRC, Mr. Gbenga Komolafe, clarified that ExxonMobil’s operations at Bonny River Offshore Terminal (BRT) were duly approved by the upstream regulator.
Approval
The NUPRC acknowledged that noted that it is the regulator statutorily entrusted with the technical and commercial regulation of the upstream sector in Nigeria, they added:
- “Our attention has been drawn to some publications in the media between June 12 and 13, 2023, alleging illegal lifting of Butane at the Bonny River Offshore Terminal by ExxonMobil.
- “The publications quoted a sister regulatory agency, the NMDPRA, as the source of the allegation.
- “Being the regulator statutorily entrusted with the technical and commercial regulation of the upstream sector in Nigeria, it has become necessary for NUPRC to state the true position regarding the transaction referred to.”
They also noted that ExxonMobil formally applied to NUPRC for approval of its operations as an integrated operation, which was granted by NUPRC, adding:
- “It is important to state that Exxonmobil formally applied to NUPRC for approval of its operations as an integrated operation, in line with Sections 8(d) and 318 of the Petroleum Industry Act, 2021.
- “Consequently, Exxonmobil applied and obtained necessary clearance from NUPRC for the lifting of 12,600 metric tonnes of Butane aboard a vessel named Barumk Gas on May 26, 2023.”
Komolafe said Barumk Gas berthed at the loading jetty at BRT on June 7, 2023, while loading operation commenced and ended on June 8, 2023, adding that an official of NUPRC on site (at the BRT) issued a Certificate of Quantity and Quality (CoQ), as statutorily required for the fulfillment of requirements of accurate hydrocarbon accounting, reporting, and ability of the vessel to sail to its delivery destination.
- “NUPRC wishes to state categorically that the said operation was legitimate and in line with the statutory mandate of the Commission as the technical and commercial regulator of the petroleum upstream sector in Nigeria, as stipulated by law.
- “The Commission is not aware of any illegality in the said transaction and none was committed by either ExxonMobil Nigeria and its affiliates or the NUPRC as an agency of government,”
Backstory
Nigeria’s Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) revealed it wrote a letter to Nigeria’s Military command about the illegal lifting of petroleum products by Exxon Mobil at Bonny River Terminal in Rivers State.
This was disclosed by the firm in a letter by its Authority’s Chief Executive, Mr Farouk Ahmed, and addressed to the Chief of Defence Staff, Gen. Lucky Irabor on Sunday in Abuja.
In the letter titled Economic Sabotage, the NMDPRA boss warned that there was alleged illegal product lift by ExxonMobil, the report stated:
- “Economic sabotage, criminal damage and theft through illegal petroleum lifting operations at Bonny River Terminal”, “Exxon Mobil was lifting Butane at the terminal with the vessel, marked Barumk Gas without the authorisation or participation of NMDPRA”
