Insights, Oil and Gas

On the Regulation of Integrated Petroleum Operations: Takeaway from Recent Developments

ExxonMobil had applied to the Nigerian Upstream Petroleum Regulatory Commission (“NUPRC” or the “Commission”) for authorisation to treat its operations as an integrated operation. This application was subsequently granted by the Commission.

Upon securing the Commission’s authorisation, ExxonMobil applied for and was granted clearance by the Commission to lift 12,600 metric tonnes of Butane at Bonny River Terminal aboard a vessel known as Barumk Gas. After loading operations were concluded, a Certificate of Quantity and Quality (CoQ) was issued by an official of the NUPRC present at the loading site.

According to media publications , the Chief Executive Officer of the Nigerian Midstream and Downstream Petroleum Regulatory Commission (“NMDPRA” or the “Authority”), Farouk Ahmed, had petitioned the Chief of Defence Staff, Lucky Irabor, through a letter dated June 8, 2023, tagging the operations of ExxonMobil at the Bonny River Terminal as an “economic sabotage”, a “theft” and an illegality. The CEO of the NMDPRA had requested the Chief of Defence Staff to “urgently prevent the sailing out of Barumk Gas until investigations into the matter are concluded”. According to the NMDPRA, the butane lifted at the Bonny River Terminal was done without its lawful authorisation…

 

 

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