To better assess oil production in Nigeria, Publish-What-You-Pay Nigeria (PWYP), has asked the regulatory authorities to install meters at the country’s oil well heads, Premium Times reports.
Oil companies argue that oil collected at the production fields are often mixed with water, sand and other residual matters that would make it difficult to determine the volume of oil at the wellhead. Besides, they hold that measuring at the oil terminals would save them huge losses from the high incidence of pipeline vandalism and crude oil theft in the Niger Delta region in recent times.
But, rising from a two-day national multi-stakeholders workshop in Abuja, the PWYP Nigeria said regulatory authorities should install the meters at the oil wellheads. Participants said this arrangement, along with the introduction of other effective and well-organised operational mechanisms, would help the country determine the quantity of crude produced.
A communique signed by the National Coordinator of PWYP, Emeka Ononamadu, and the Representative of Nigerian Extractive Industries Transparency Initiative (NEITI), Mina Ogbanga, said these would strengthen transparency and accountability in the extractive industry in the country.