Lawyers raise concern over illegal lifting of crude oil at Ugo Ocha terminal

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(Nigeria) A group of lawyers have petitioned the Senate Ad-Hoc committee over alleged illegal oil lifting from the Ugo Ocha export terminal at Oil Mining Lease, OML, 42.

Investigations revealed OML 42 is located in the swamps of the Western Niger Delta, comprising four flow stations with a combined production capacity of 30,000 barrels of oil per day operated by Neconde Energy Limited.

The lawyers through their counsel, O.F Emmanuel & CO in a letter dated September 21, 2022, by the principal partner, Oluwatosin Emmanuel to the Nigerian Senate, called for probe into the circumstances on how an average one million barrels of oil is being taken away monthly without accurate measurement due to the absence of meters at this export terminal.

The petitioners, who noted that Neconde had rebuffed all attempts to install a metering system known as LACT unit at the export terminal, called for an investigation on why the company operates the terminal in violation of the Federal Government’s directive for accurate measurement at the export terminals.

According to them,  “As of the time of the petition, there are no meters at the Ugo Ocha export terminal to accurately determine the volumes of Nigeria’s crude oil sold to foreign buyers,” stating that enormous amount of revenue - to the tune of $15million per month accruable to the Federal Government of Nigeria could potentially be lost due to the absence of a functional measurement system for exported crude oil volumes at this terminal.

The petition noted that though the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, had recently placed a ban on all crude oil exports from Ugo Ocha, available information reveals that foreign tankers were being sighted lifting oil from the terminal.

They pleaded with the Senate ad-hoc committee to come to the aid of Nigeria by ensuring that the ban on exports from the Ugo Ocha terminal was enforced until the operators were compelled to install a 1.25 million barrels per day LACT Unit (metering system),  which has already been manufactured, paid for, and approved by the government regulator (NUPRC) for the Ugo Ocha terminal.

The lawyers prayed the Senate ad-hoc committee to direct the Nigerian Navy to arrest and investigate the vessel MT COPPER SPIRIT for lifting oil at the Ugo Ocha terminal.

The also asked the ad-hoc to direct the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, and NUPRC to cancel all barging permits granted to operators at Ugo Ocha terminal until a LACT Unit was installed and commissioned and ordered the Nigeria Ports Authority, NPA, to prohibit the movement of crude oil barges and tankers to and from the Ugo Ocha terminal.

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