The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) released a set or regulations on petroleum measurement in the upstream oil and gas sector. This article is the first in a 3-part series, with a focus on :
– Objectives
– Application scope of the regulations
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
– Metering plans
– Measurement equipment and metering services under a metering plan
– Licenses to provide metering services.
What are the objectives of the regulations?
– To provide a framework for –
a). The installation of measurement equipment and measurement points as prescribed by the NUPRC.
b). Accelerated meter rollout measurement points as determined by the NUPRC.
c). The provision of independent and competitive metering service operations in the upstream petroleum sector.
– To encourage private investments in the provision of metering services in the upstream sector.
What is the application scope of the regulations?
– These regulations shall apply to licensees, lessees & persons providing services in relation to measurement in upstream petroleum operations.
What are the metering plan requirements stipulated by the regulations?
– A licensee or lessee shall have w metering plan approved by the NUPRC for measuring petroleum production from its producing license or lease area.
– A metering plan shall contain –
a). All measurement points related to the license or lease.
b). Location of all existing measurement meters related to the license or lease.
c). Any additional measurement meters required based on the directives of NUPRC .
d). The timeline for installation of measurement meters, where additional meters are required.
e). A plan for the provision of metering services in relation to the license or lease.
What are the provisions of the regulations regarding measurement equipment and metering services under a metering plan?
– A lessee shall carry out the installation of metering services under a metering plan through a licensed metering services provider in accordance with these regulations.
– A licensed metering services provider shall be an original equipment provider or its agent, approved by the NUPRC.
What are the provisions of the regulations on the license to provide metering services?
– A person shall not provide metering services under these regulations without obtaining a license issued by the NUPRC.
– The NUPRC may grant a license to a qualified person to provide metering services to a licensee or lessee, provided that such authorization is subject to such terms and conditions as may be prescribed by the commission in the license agreement.
What are the provisions of the regulations on measurement systems?
– Measurement equipment and metering systems deployed by a licensee or lessee under a metering plan shall conform with the standards and specifications issued by NUPRC.
– These standards and specifications shall relate to the design, fabrication,manufacture, installation, calibration, operation, maintenance, upgrade and inspection or any other requirement issued by NUPRC.
Section II
This article is focused on the provisions of the NUPRC Petroleum Measurement Regulations on the topics of:
– Technical requirements for deployment of metering services
– The rights & obligations of parties
– The resolution of dispute between a lessee and metering services provider
– Obligations of the lessee
What are the technical requirements for the deployment of metering services?
– A metering service provider shall deploy technology and back-office systems to –
a). Measure production from the licensee’s or lessee’s petroleum operation.
b). Report the measured production to the NUPRC on an online real time basis.
c). Create an interface for data sharing on an online real time basis between the lessee and the commission.
What are the rights of lessees under the regulations?
– A lessee shall have access to metering equipment deployed by a metering services provider for the purpose of data verification.
– A lessee may query the accuracy of data generated by the metering services provider.
What are the provisions of the regulations on the resolution of disputes between a lessee and metering services provider?
– Any dispute between a lessee and a metering services provider shall be resolved between the parties.
– Where the dispute cannot be resolved between the parties, a party to the dispute may refer the dispute to the NUPRC for resolution.
– Where disputes cannot be resolved by the NUPRC , the dispute shall be resolved in accordance with the dispute resolution mechanism in the metering services agreement.
– Where the dispute relates to payment for services rendered, the lessee shall pay the disputed amount to the metering services provider within 30 days until the dispute is resolved by the NUPRC.
What are the obligations of a lessee?
– A lessee shall –
a). Execute a metering Services agreement with a metering services provider for the deployment of metering services under these regulations.
b). Treat cases of unauthorized access and meter tampering in accordance with existing laws and regulations.
c). Provide relevant information to the metering services provider in a timely manner to enable it carry out its obligations under the metering services agreement.
d). Provide a safe and secure location within its facilities for the metering services provider to carry out its services under a metering services agreement.
Notable Provisions of The Upstream Petroleum Measurement Regulations of Nigeria
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) released a set or regulations on petroleum measurement in the upstream oil and gas sector. This article is the first in a 3-part series, with a focus on :
– Objectives
– Application scope of the regulations
– Metering plans
– Measurement equipment and metering services under a metering plan
– Licenses to provide metering services.
What are the objectives of the regulations?
– To provide a framework for –
a). The installation of measurement equipment and measurement points as prescribed by the NUPRC.
b). Accelerated meter rollout measurement points as determined by the NUPRC.
c). The provision of independent and competitive metering service operations in the upstream petroleum sector.
– To encourage private investments in the provision of metering services in the upstream sector.
What is the application scope of the regulations?
– These regulations shall apply to licensees, lessees & persons providing services in relation to measurement in upstream petroleum operations.
What are the metering plan requirements stipulated by the regulations?
– A licensee or lessee shall have w metering plan approved by the NUPRC for measuring petroleum production from its producing license or lease area.
– A metering plan shall contain –
a). All measurement points related to the license or lease.
b). Location of all existing measurement meters related to the license or lease.
c). Any additional measurement meters required based on the directives of NUPRC .
d). The timeline for installation of measurement meters, where additional meters are required.
e). A plan for the provision of metering services in relation to the license or lease.
What are the provisions of the regulations regarding measurement equipment and metering services under a metering plan?
– A lessee shall carry out the installation of metering services under a metering plan through a licensed metering services provider in accordance with these regulations.
– A licensed metering services provider shall be an original equipment provider or its agent, approved by the NUPRC.
What are the provisions of the regulations on the license to provide metering services?
– A person shall not provide metering services under these regulations without obtaining a license issued by the NUPRC.
– The NUPRC may grant a license to a qualified person to provide metering services to a licensee or lessee, provided that such authorization is subject to such terms and conditions as may be prescribed by the commission in the license agreement.
What are the provisions of the regulations on measurement systems?
– Measurement equipment and metering systems deployed by a licensee or lessee under a metering plan shall conform with the standards and specifications issued by NUPRC.
– These standards and specifications shall relate to the design, fabrication,manufacture, installation, calibration, operation, maintenance, upgrade and inspection or any other requirement issued by NUPRC.
Section II
This article is focused on the provisions of the NUPRC Petroleum Measurement Regulations on the topics of:
– Technical requirements for deployment of metering services
– The rights & obligations of parties
– The resolution of dispute between a lessee and metering services provider
– Obligations of the lessee
What are the technical requirements for the deployment of metering services?
– A metering service provider shall deploy technology and back-office systems to –
a). Measure production from the licensee’s or lessee’s petroleum operation.
b). Report the measured production to the NUPRC on an online real time basis.
c). Create an interface for data sharing on an online real time basis between the lessee and the commission.
What are the rights of lessees under the regulations?
– A lessee shall have access to metering equipment deployed by a metering services provider for the purpose of data verification.
– A lessee may query the accuracy of data generated by the metering services provider.
What are the provisions of the regulations on the resolution of disputes between a lessee and metering services provider?
– Any dispute between a lessee and a metering services provider shall be resolved between the parties.
– Where the dispute cannot be resolved between the parties, a party to the dispute may refer the dispute to the NUPRC for resolution.
– Where disputes cannot be resolved by the NUPRC , the dispute shall be resolved in accordance with the dispute resolution mechanism in the metering services agreement.
– Where the dispute relates to payment for services rendered, the lessee shall pay the disputed amount to the metering services provider within 30 days until the dispute is resolved by the NUPRC.
What are the obligations of a lessee?
– A lessee shall –
a). Execute a metering Services agreement with a metering services provider for the deployment of metering services under these regulations.
b). Treat cases of unauthorized access and meter tampering in accordance with existing laws and regulations.
c). Provide relevant information to the metering services provider in a timely manner to enable it carry out its obligations under the metering services agreement.
d). Provide a safe and secure location within its facilities for the metering services provider to carry out its services under a metering services agreement.