Performance Analysis of the Institutions in Charge of the Oil and Gas Industry Measurement Management and Development of Metrological Technology to Bridge the Knowledge and Skills Gaps In Nigeria

Sufficient management of the oil and gas industry measurement activities by the oversight
entity is a challenge in most of the oil and gas producing jurisdiction around the world, in
particular, the upstream sector of the industries. This is indisputable as the problem cuts
across both developed (U.S.A) and the developing (Nigeria) countries. In the United State of
America, the Government Accountability Office [GA0] (2010a) said, “The Department of the
Interior’s oil and gas production verification efforts do not provide reasonable assurance of
accurate measurement of production volumes” while in Nigeria, the Nigeria Extractive
Industries Transparency Initiatives report conducted by Hart Resources Ltd et al., (2006b,
2009) said, “the Department of Petroleum Resources has no system for measuring crude oil
production, other than through monitoring terminal receipts”. This thesis thus explored the
problem’s sources, the possible solution that could be implemented to tackle the problem, and
on top, proffer the solution.

The thesis analyses the existing state and problems requiring solution concerning Nigeria oil
and gas measurement management. This is accomplished through a thorough analysis of
each of the oversight entities responsible for the measurement management of the Nigeria oil
and gas industry using both secondary and primary sources. The entities reviewed in this
research are the Department of Petroleum Resources, Weights and Measures Department,
National Metrology Institute / Standard Organisation of Nigeria, and six Universities in Nigeria.

The thesis has identified skills and knowledge impediments among all the entities, identified
learning solution as the required solution and practical application of metrology to the oil
industry as the best instructional intervention for the concern entities.

To be able to provide the required learning solution to all the concern entities, an innovative
training package titled “oil metering station performance evaluation using uncertainty tools”, in
the field of metrology (“metrological technology” in the engineering sense) was designed with
the aimed to impart on the target audience the knowledge and skills of the metrological tools
essential for effective measurement management of the oil and gas industry. The training
package was structured into three levels that increase in complexity from level 1 to level 3 to
ensure progress and to encourage participants to learn in increasingly sophisticated ways.
Level 1 hold two units targeted to impart fundamental knowledge of metrology to bring the
institutions to the same level in the field of metrology, and thereupon, enhance internal
cooperation in the field of metrology. Level 2 contains 9 units aimed at imparting the
knowledge and skills required for the full understanding of all the custody transfer and fiscal
measurements in the oil industry as well as associated uncertainties. Level 3 consists of 2 units
that will enable the participants to practically apply what learnt in level 1 and level 2 to
their present job in the industry.

This thesis has advanced the state-of-the-art in oil and gas industry measurement
management problem referencing by undertaking the first comprehensive analysis of the
oversight entities performance problem and the required solution. Moreover, the discovery of
the knowledge and skills gaps of the entities is a significant contribution to the study of the
area requiring improvement in the educational system of Nigeria and the curriculum of any of
the hydrocarbon or petroleum measurement institution across the globe. The pilot version of
the training package was lauded by the Nigeria government to the level at which it was
published in different papers. The strategy employed for the establishment and
implementation of the metrological technology delivered excellent results to the level where
all the concern Organisations and Departments could synergize to develop sound
measurements regulations and policy, sound accountability inspection, and effective
production verification programme that are capable of ensuring accurate measurements of oil
production volumes, which could save Nigeria from the financial loss of up to 1.6 million dollars
every day and approximately 584 million dollars per year.

The results disseminated in the publications generated through this research project have a
significant contribution to the study of the significance of metrology in the oil and gas industry
measurement management. And, the metrological technology developed has a significant
contribution to the bridging of the knowledge and skills gap in the oil and gas institutional
domain.