NiHMEC 2023 Report

3nd Nigeria Hydrocarbon Measurement Conference (Nihmec) 2023

Executive Summary.

Metering is the cash register of the petroleum industry worldwide. All efforts in producing hydrocarbons from the reservoir can go to waste if measurement and metering are poorly executed. Mismeasurement can lead to huge financial losses for both the operator and the government, and can also result in legal disputes and reputation damage. This is why, in most countries, hydrocarbon measurement conferences are held to discuss technology, processes, and best practices that would enhance the measurement of hydrocarbons. And this is also the reason why the Nigeria Hydrocarbon Measurement Conference (NiHMEC) is taken seriously by all stakeholders, both within the country’s petroleum industry and beyond.

The theme of NiHMEC 2023: “Unlocking Gas Resources and Optimizing Metering for Maximum Value,” was born out of proceedings from NiHMEC 2022. This is due to the fact that, at NiHMEC 2022, stakeholders’ yearning for solutions to gas metering challenges was quite strong and their collective call for a structured discussion about natural gas metering was also very loud.

It is therefore logical to conclude that this was notably so because natural gas presents more challenges in terms of measurement and metering. And this is so because each chemical component of natural gas responds differently to the effects of temperature and pressure under flowing conditions. Thus, natural gas must be measured with care in order to minimize unintended losses. Moreover, natural gas is sold based on its gross calorific value, meaning that more measurement equipment are required for accurate measurement.

Nigeria is endowed with over 206 TCF of gas in reserves that must be produced and sold for the economic transformation of the country. From the point of production to the last mile, the role of measurement and process technology will be critical. This calls for continued discussion among stakeholders to deepen understanding, curtail losses, and minimize legal disputes among operators and between sellers and buyers.

Therefore, this document contains the discussions and outcomes of NiHMEC 2023, which was held at Victoria Crown Plaza (VCP) Hotel in Lagos from 3rd to 5th October, 2023. While the theme of NiHMEC 2023 was centered on natural gas, a wider range of discussions around measurement technology and practices further covered many other critical issues that the industry faces today, from the upstream to the downstream segments of the petroleum industry.

The expectation of the promoters of this conference is that all stakeholders should identify what they can do to improve hydrocarbon measurement and accounting processes for maximum economic benefit.

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