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Nigeria loses N775bn yearly to non-metering of oil wells – Aganga

By BusinessNews Staff on September 9, 2011

Minister of Trade and Investment, Dr Olusegun Aganga yesterday said Nigeria loses N775billion annually over non-metering of oil wells and inaccuracy ship-to-shore loading and offloading of vessels

Dr Aganga, who made this known while speaking on the ministry’s achievements in the last 100 days. said: “More than US$5 billion, representing about 10 percent of the total annual revenue from the export of oil and gas from Nigeria, is lost to non-metering of oil wells and inaccurate ship-to-shore differences while loading and offloading vessels.”

Metering, he said, is an important part of oil field which is responsible for the three-phase metering of the liquid, oil and gas of each well, and provides oil reservoir engineering information for geological authority. The external segregator of oil field metering station separates natural gas, oil and water

The Minister noted: ‘There is an unfair trade resulting from under-dispensation of petroleum products at petrol stations and charges to consumers/subscribers of electricity, water, telecommunication etc.”

Aganga stated: “I am however delighted to inform you that in the first 100 days, we have sought and received approval from Mr President to commence legal metrology in those areas. This will lead to a significant increase in revenue/savings to the government; promote confidence and trust in local and international trade transactions and protect the consumers from unwholesome trade practices”

Vanguard

Olusegun Aganga