How VolantBA Could Stop, or Minimise, Oil Theft In Nigeria
Oil theft in Nigeria is a major challenge for the oil and gas producers in Nigeria. Theft not only steal from the producing companies, but also forces the companies to spend more on security measures,
How VolantBA Could Stop, or Minimise, Oil Theft In Nigeria.
VolantBA has two methods for accounting oil loss.
- Distribute oil loss to all streams proportional to corrected amount injected.
- Distribute oil loss only to nodes upstream from leak location and in proportional to corrected amount injected.
All other traditional Back Allocation tools used in the oil and gas industry by either major IOC or indigenous producers in Nigeria uses method 1 and no option for method 2
Challenges of option 1
Listed below are the factors increasing the volume of oil loss in Nigeria
- Error in shrinkage calculations
- Error in Reconciliation Factor (RF)
- Metering inaccuracy
- Error in Storage Tank Fiscalization.
- Improper Deferment booking
- Error in Validation period
- Well test result error and Test pipeline wax blockage.
- Leaking inlet valve
- Well Registration period
Advantages of option 2
- Provision of option 2 by VolantBA hydrocarbon accounting tool would provide opportunity for regulatory authority to focus on few areas of concentration since the loss is distributed only to nodes upstream from leak location and in proportional to corrected amount injected.
- Nodes downstream area of leak does not suffer unnecessary loss.
- Improved RF for companies/nodes downstream leak area
Though same issues with option 1 however this can be managed effectively as the affected nodes upstream the leak region may not be as many as all streams and nodes implemented by other traditional back allocation tools
Implementation of VolantBA by all oil companies operating in Nigeria would universally reduce or stop oil theft in the country.
The primary function of VolantBA to carry out back allocation and reconciliation at any node of the network in addition to other functionalities not available in other traditional back allocation tools like the follows
- Options to host on either premises or/and cloud.
- Secure data and user security, like financial model security standard.
- Fast daily, monthly or periodical allocation within less than 10 minutes for a facility up to 120 wells.
- Deployment within 3 weeks of commercial engagement.
- Support manual entry, SCADA/Real time historian.
- Provides all standard regulatory reporting templates.
Would make VolantBA implementation to either minimize or stop oil theft in NIgeria
After taking care of software issue by implementing VolantBA for back allocation by all oil and gas companies in Nigeria then Nigeria Government can look at the hardware issues listed below
The federal government ought to assume liability and keep surveillance any place oil pipelines are. One significant issue of the federal government is that it doesn't deal with its properties. The federal government burns through cash in laying the oil pipelines just to pass on them to criminals. No one deals with them. The local and public authority ought to deal with them.
The people who live around the pipelines right of way ought to be utilized to work close to them. They will effectively know when the lines burst or when they are messed with. They can then take remedy for whatever should be done.
The federal government ought to build treatment facilities near oil wells. There are unrefined petroleum pipes that run from Warri to Kaduna. Imagine the distance! Anything can happen to them in such a distance.
In the event that the oil can be refined in the region/ community where it is, the chance of taking the crude petroleum will be decreased to the barest minimum. The diversion of petroleum products can then be effortlessly dealt with.
One significant explanation the issue of oil theft is challenging to manage is the sort of individuals who are involved. High-positioning security officials are in the business. High-positioning individuals from oil companies both IOC and indigenous are involved. It is just when this multitude of individuals help out the federal government and the oil companies that the issue can be addressed.
Some highly placed politicians use oil theft to sabotage the efforts of the federal government. They cry foul against the federal government saying that it is not doing enough. This they do just to sabotage the government’s effort.
Anybody caught in oil theft saga ought to confront the full fury of the law. Individuals are still in the business since nothing happens to them. The moment the crime is taken seriously, people will leave it and oil theft would come to an end.
Oil theft is unlawful and difficult issue in Nigeria. It makes the nation lose revenue. Many lives have additionally been lost simultaneously. Hence, all ought to help out the federal government and the oil companies that are responsible for crude oil production in Nigeria in controlling it. Stealing is bad. It should stop. Nigeria belongs to all of us. Let us make it a better place for all to live in. Oil theft can't help us in any capacity. Implementation of VolantBA with improved RF for nodes down streams would force the few affected nodes to take adequate action to prevent oil theft by collaborating with federal government to deal with the hardware issues.
Akanni Mukaila Lawal is an oil and gas production accounting and back allocation specialist with over 20 years of international experience. He has worked as corporate production data custodian for large international oil company.