Conference summary and outcomes final

1st
NIGERIA HYDROCARBON
MEASUREMENT CONFERENCE
(NIHMEC)—2021
Conference
Summary and
Outcomes

1st Nigeria Hydrocarbon Measurement Conference (NiHMEC)—2021
Conference Summary and Outcomes
2
CONFERENCE SUMMARY AND OUTCOMES REPORT
1ST
HYDROCARBON MEASUREMENT CONFERENCE (NiHMEC)-2021
Executive Summary
The 1st
Nigeria Hydrocarbon Measurement Conference (NiHMEC) held on 2nd
February 2021 was organised by Fleissen & Company Ltd following a
consultation with the DPR and other industry stakeholders. The theme of the
Conference was "Embracing today's Requirements and tomorrow's Challenges
in Hydrocarbon Measurement." The Conference's objective was to bring all the
industry stakeholders to discuss the developments in hydrocarbon
measurement technology, field experiences, and how to maximise DPR
guidelines and other international standards to get the best out of measurement
systems. Because of government restrictions on large gathering due to COVID-
19, NiHMEC 2021 was held virtually via the Zoom platform.
The Conference speakers were some of the brightest minds in the petroleum
industry in Nigeria and worldwide. There were eleven speakers and two session
moderators. Representatives from 31 countries and Nigeria attended the
Conference. The Conference had 488 participants in attendance and lasted for
4 hours. Participants asked over 60 questions, with 60% of the questions
targeted at the regulator—DPR.
The Conference was chaired by Mr Osten Olorunsola, while DPR's Director/CEO,
Engr Sarki Auwalu, was the keynote speaker. The Minister of States for
Petroleum, H.E. Chief Timipre Sylva, declared the Conference open following his
goodwill message delivered in proxy by Engr Sarki Auwalu. In attendance was
the Executive Secretary of Petroleum Technology Development Fund (PTDF)—
Dr Bello Aliyu Gusau, represented by Mr Uchenna Ikoku.
All the speakers agreed that NiHMEC was timely and should become an annual
event. The Director/CEO of DPR said that he desired to see NiHMEC become a
regular event in the Nigerian petroleum industry's annals. Dr Akenn Musa
represented the Director of DPR as the keynote speaker. Dr Akenn provided
answers and clarifications on all the questions that the participants asked. The
speakers were unanimous on the need to adhere to DPR guidelines and
international standards for hydrocarbon measurement.

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The speakers concurred that it was important for operators to measure what
they produce to control losses and maximise profit. For reservoir management,
it was advised that where feasible, the production stream be measured at the
wellhead instead of using a fiscalised production rate for wells and reservoirs
back allocation. The speakers emphasised the importance of digitisation and
data management for the accounting of production. Multiphase flow and virtual
flow meters were the two technologies that received the most attention from
participants. Many participants were also interested to learn more about flow
meters recommended for natural gas and wet gas measurement. Participants
asked some questions about flow meter calibration and measurement
uncertainty.
From the speakers, there were calls for frequent training of personnel involved
with hydrocarbon measurement and handling of production data. The urgent
need was expressed for operators to prioritise and support the development of
expertise among the personnel directly involved in hydrocarbon measurement
and accounting, given its relation to the company's bottom line. There was a call
for synergy among flow measurement engineers and hydrocarbon accountants.
The speakers also suggested that the government enhance the security around
oil and gas infrastructure to ensure that metered quantities of hydrocarbons
arrive safely at the export terminal or the customer location. Participants also
advised the DPR on the need for a holistic hydrocarbon measurement audit of
oil and gas fields to get an accurate, up-to-date picture of hydrocarbon
measurement practices by operating companies.
The opening session of the Conference
The Conference started at 1:30 pm with Dr Sunday Kanshio, the NiHMEC Project
Lead, who introduced all the aspects of the
conference sessions and handed the session to Dr
Olufemi Olarewaju. Dr Olarewaju introduced the
Conference Chairman, Mr Osten Olorunsola—
currently the Chairman of the Energy Institute
Nigeria and a former DPR Director. The Chairman
welcomed the participating industry stakeholders,
speakers, and panellists for being part of the
Conference. The Chairman recognised the
participation of the Minister of States for
Mr Osten Olorunsola

4
Petroleum, H.E. Chief Timipre Sylva. The Chairman equally recognised the
presence of the Director/CEO of DPR, Engr. Sarki Auwalu.
The Chairman informed the participants that NiHMEC was conceived to be an
annual event, such as the North Sea Flow Measurement Workshop. NiHMEC was
envisioned to be a premier event where the petroleum industry in Nigeria would
gather annually to share experience and best practices in hydrocarbon
measurement and accounting. The Chairman narrated the journey and efforts
made by himself and other industry experts to organise the Conference during
the past three years. He underscored the timeliness of the NiHMEC given the
renewed industry emphasis on hydrocarbon accounting. The Chairman stressed
that flow measurement is now critical in managing Nigeria's hydrocarbon
resources—even the Petroleum Industry Bill (PIB) emphasised oil and gas
measurement. The Chairman lent credence to the importance of oil and gas
measurement, as it traverses technical, commercial, fiscal, policy, socio-
economic, socio-political, and human-rights domains. In his final remark, the
Chairman said that, beyond the technical, operational, and commercial aspects
of hydrocarbon measurement, he was looking forward to some flow
measurement innovations, the utilisation of flow measurement in energy
transition, and the impact of digitisation on the future of flow measurement. He
encouraged the industry to understand the bigger picture of introducing
innovative ways of managing oil and gas fields. He urged the participants to
participate with passion.
The Chairman introduced H.E. Chief Timipre Sylva and invited him to present his
goodwill message. He expressed his appreciation to the Honourable Minister for
accepting to give a goodwill message at the Conference despite his tight
schedules. He indicated that the Minister's participation is a recognition of the
role flow measurement would undoubtedly play in the midstream and
downstream value chain, which the Honourable Minister of State is driving
ceaselessly as the significant development initiative of President Mohammadu
Buhari administration.

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Message from the Minister of State for Petroleum Resources
The Minister of State for Petroleum Resources, H.E.
Chief Timipre Sylva, sent his goodwill message to the
participants at the Conference. Because of exigencies
of office, the Director/CEO of DPR presented the
Minister's goodwill message at the Conference.
The Minister stated that his participation in the private
sector-led initiative—NiHMEC, was a testament to
President Mohammadu Buhari administration's
commitment to ensure full optimisation of Nigeria
petroleum resources for the benefit of Nigerian
investors and other stakeholders at large. He
emphasised that hydrocarbon accounting is at the
heart of the oil and gas business because it helps in
ensuring efficient conservation of resources, production optimisation and
guarantees that transactions are done transparently to ensure equitable returns
to all concerned—government, operators, and other stakeholders.
The Minister reiterated that the Conference was critical and timely. It
complements government efforts to ensure a robust and best in the class
system of oil and gas accounting in accordance with international standards and
global best practices. He applauded NiHMEC as a private sector-led initiative and
assured participants of his firm commitment to the development of
hydrocarbon measurement.
He enumerated some of the achievements DPR has recorded under his
leadership which include a) issuance of updated guidelines on hydrocarbon
measurement, b) evaluation and approval of technologies and equipment,
methods, and practices for hydrocarbon measurement and accounting, and c)
maintaining a national production monitoring system, which is hosted in the
DPR. The Minister said that he directed the relevant technical resources from
the DPR to attend the Conference and contribute to the discourse, offer insights
into the regulatory practices, share broad experiences, and collect feedback
from the industry for evaluation and implementation.
The Minister announced that DPR would be organising an international summit
on oil and gas measurement to be held in 2021. He stated that the event is in
line with the government drive to expose the NOGIC centre recently opened by
President Mohammadu Buhari.
H.E. Chief Timipre Sylva

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Keynote address by Director/CEO of DPR
The keynote address by the Director/CEO of DPR,
Engr Auwalu Sarki, FNSE, was delivered by Dr
Akenn Musa, the DPR's Head of Engineering and
Standards. The title of the keynote speech was
Best Practices in Oil and Gas Fiscal
Measurement—Maximising the Value of DPR's
guidelines.
The Director was pleased with the initiative of
putting together the 1st
Nigeria Hydrocarbon
Measurement Conference. He said it was a brilliant idea to bring together
metrology experts and industry stakeholders to exchange ideas on pertinent
hydrocarbon measurement issues.
To put the importance of hydrocarbon measurement
and measurement accuracy into context, the Director
requested the participants to imagine going to a petrol
station with a 4-Litre keg to buy petrol, and after filling
the keg, the pump totaliser displayed 5 litres—which
one are you going to pay for; he asked? When a flow
meter is not correctly calibrated, that is the magnitude
of error the buyer or seller can get from the
measurement.
The Director explained that, in view of the government's responsibility to
protect the Nigerian public, a regulatory framework for measurement in the
Nigerian oil and gas industry was put in place by way of Regulation 52—Drilling
and Production Regulation of 1969. The procedural guide for the determination
of quantity and quality of petroleum and petroleum products in Nigeria provides
unambiguous clarification on the regulatory provisions. As the regulator of
Nigeria's oil and gas industry, the DPR recognises that metrology is dynamic.
Therefore, it ensures that the metering guideline is constantly updated to
accommodate new industry trends and technologies.
The Director informed the participant that DPR has recently merged the oil
measurement guidelines with that of gas measurement to provide an all-
inclusive hydrocarbon measurement document. The procedure guide for the
Engr Auwalu Sarki, FNSE
Dr Akenn S. Musa

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determination of quality and quantity of petroleum and petroleum products in
Nigeria seeks to enforce accurate measurement procedures by providing
industry best practice guidance in the following areas: Meter selection criteria,
design of proving and sampling systems, selection of temperature and pressure
measurement devices, the procedure for factory and site acceptance tests, the
procedure and frequency of calibration and meter proving and the procedure
for hydrocarbon export operations.
The DPR, as an enabler of business opportunities, has also started a campaign
to ensure that every new flowmeter technology or equipment coming into the
Nigerian oil and gas industry undergoes a rigorous type-approval and technology
adaptation process to ascertain its suitability and to certify that it meets the
particular requirements of Nigeria. This ensures that only proven hydrocarbon
measurement technologies are deployed in Nigeria so that the country does not
become a dumping ground for obsolete flow metering technologies. He posited
that the industry's current flow meter deployment ranges from PD meter,
turbine, orifice, Coriolis, ultrasonic flow type meters, and other metering
technologies like the multiphase flowmeters. However, he said that the
multiphase flow meter is yet to be approved for custody transfer measurement
in Nigeria.
The Director ended his speech by wishing the participants a successful
deliberation and assured them of the federal government's willingness to
consider any valuable recommendations that arise from this noble first of its
kind measurement conference. He stated that he desired to see the Nigeria
Hydrocarbon Measurement Conference become a regular feature in the
petroleum industry's annals in Nigeria.
The Conference discussions were shaped by two sub-themes. The two
subthemes were: Improving natural gas production profitability through
accurate and reliable flow measurement and Upstream production
measurement, monitoring and accounting for field optimisation and revenue
maximisation

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Improving natural gas production profitability through accurate and
reliable flow measurement
The session was chaired and moderated by Engr Isaac
Ebhohimhen, the Metering and Allocation Lead at AITEO
Eastern Exploration and Production Company Limited. In
his opening remark of the session, Engr Isaac reprised the
need for accurate gas measurement to optimise gas
production, minimise losses, and enhance profitability. He
stated that the global shift in energy demand from oil to
gas is causing oil companies to invest in gas production. Engr. Isaac introduced
the panellists in his session and invited the lead speaker, Godfrey Omokaro.
Godfrey Omokaro is the Head of Metering at Shell
Petroleum Development Company (SPDC). Godfrey's
speech was titled Benefits of improving measurement
uncertainty in gas production.
We all know that for production, measurement is critical;
hence, we need to be sure of the data we acquire. That is
why the focus should be on measurement uncertainty. As
we progress, you will see why we focus more on
measurement uncertainty than accuracy and other things. The operator, he
stated, must focus on measurement uncertainty because data reliability is
critical to making production management decisions. He put the effect of
measurement uncertainty in perspective using an example of a flow meter with
a 1% error in gas measurement. For 100MMSCFD at $2.5/MSCF, a 1% error
would result in a $900,000/year loss in revenue to the operator or the buyer.
Inaccuracy in gas measurements can result in penalties and fines and the loss of
wells, a production facility, or a pipeline.
He mentioned some of the sources of error in gas measurements, such as
human error, shrinkage /compressibility factors, inaccurate correction factors,
and metering equipment failures. He highlighted how measurement errors
could be eliminated to include adherence to DPR guidelines and international
standards, proper selection of flow meters, adoption of best-practices, regular
training, and comprehensive measurement audits.
He suggested that if the operator complied with all industry standards and
adopted best practices in gas measurement, thus minimising data anomalies,
the operator producing into a third-party processing facility could maximise
Godfrey Omokaro
Engr Isaac Ebhohimhen

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production and minimise production cost, properly account for injections into
pipelines and avoid disputes, pay the correct royalty, and enhance gas recovery
by developing stranded gas. Godfrey concluded his speech by saying that with
the opportunities in the gas market, domestic or export, now is the time to get
right the country's gas measurement uncertainty.
Speaking after the lead speech was Andy Orji, the Metering
Optimization Engineer from Chevron. Andy spoke on natural
gas production measurement and optimisation. Andy started
by encouraging the industry and stakeholders to support the
organiser of NiHMEC so that the Conference can become an
annual event.
Andy observed that natural gas and its derivatives are playing
a significant role in the economic life of the world in general and Nigeria in
particular. As the importance of natural gas increases, the need for more
accurate measurement of natural gas and its derivatives also increases. He
stated that natural gas's physical characteristics make it more challenging to
measure than oil; hence the right personnel, processes, and systems must be
put in place to ensure accurate gas measurement.
He also identified the use of modern metering technology and proper
installation to improve the accuracy of gas measurement. He stated that
accurate gas measurement was necessary to meet regulatory requirement, for
accurate calculation of government royalty and taxes, for commercial purposes,
and well optimisation. He reminded participants that measurement is the
company's cash machine.
He gave examples of meter installation issues causing inaccurate gas
measurements, such as installation in a liquid trap, installation at an incorrect
location, selecting a wrong metering system and wrong sizing of a flowmeter.
He strongly emphasised the need for the professionalisation of the
measurement role in Oil and Gas companies. Companies should have specialised
measurement teams instead of viewing measurement as part of the field-
operators' job.
Andy Orji

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Elozino Olaniyan, Commercial & NOV Manager, SPDC,
spoke on the Commercially viable natural gas
production and cost competitiveness—the role of
accurate flow measurement.
Elozino started by echoing the importance of accurate
gas measurement—what you cannot measure; you
cannot improve. According to Elozino, there are a lot of
measurement losses associated with gas. If you cannot
accurately measure the amount of gas that goes through
the value chain, you cannot improve the value you get
from it. Elozino identified three antidotes critical to the
commercial viability of gas production—: minimising value erosion, optimising
return on investment, and maximising cash. To avoid value erosion, Elozino
emphasised the need to measure and account for every molecule of gas
produced because a molecule of gas lost is a fraction of a dollar lost. Elozino
agreed with Godfrey on losses from errors in gas measurement, stating that the
acceptability in measurement accuracy of 1% could amount to a massive loss for
a company producing, say, 100MMSCFD. So, the question is, do we want to
continue running our system with estimates that are far larger than 1%, or do
we want to invest to ensure that we reduce the losses that we have? Elozino
was optimistic that every focused action to minimise losses leads to profitability.
Engr Emmanuel Adedeji, Hydrocarbon Accounting
and Flow Assurance Manager at Seplat, eloquently
spoke on Natural gas measurement—what the
industry should know in the context of production
assurance and field profitability.
Engr Emmanuel thanked Fleissen & Company for
organising the Conference and said that the NiHMEC
and the discussions on gas measurement were
timely. Engr Adedeji told the participants that gas metering stations are critical
in determining the gas quantity and quality to determine the operator's sales
revenue. He noted that the metering stations are usually not a stand-alone
facility. The type of metering station you want to build would determine the
facility you have to install. It means that you must invest in these pieces of
equipment for your metering system to work. Once you are sure that there are
a ready market and steady offtake, you must invest in metering systems to give
you the best accuracy to maximise your income. He mentioned that the right
pricing mechanism is necessary to encourage investment into metering
infrastructure because of the enormous capital investment. He said that security
Engr Emmanuel Adedeji
Elozino Olaniyan

11
improvement to reduce sabotage and theft is also essential to ensure that what
is measured reaches the customer. The industry also needs a supportive
regulatory environment conducive to growing the gas business and encourage
investment in metering infrastructure.
Ramy Ahmed Diaa, the Flow Products Technical Manager
– MEATI at Panametrics—a Baker Hughes Company,
spoke on Flare gas measurement—What are the options
considering cost competitiveness?
Ramy mentioned four critical reasons why operators in
Nigeria must install flow meters to measure flare gas
accurately: 1) to comply with flare gas regulation 2018, 2)
to avoid over/underpayment of penalty, 3) gas
accounting and 4) flare gas recovery. Ramy identified flare
gas measurement challenges as flow rate variation, gas
composition variation, low pressure, corrosive
environment, and wide temperature range. He mentioned that these challenges
make it difficult for conventional flow meters like an orifice flow meter to
measure flare gas. According to Ramy, flare gas measurement was a challenge
until Panametrics invented the first ultrasonic flare meter in 1982. Ramy said
that the Panametrics ultrasonic meter measures flow gas at all operating
conditions because of its superior design. He reported that 65 Panametrics
ultrasonic flare gas flow meters had been installed in Nigeria.
The chair of the session, Engr Isaac, closed the session by saying that the session
was thought-provoking and advised that the discussion on gas measurement
should be a continuous one. He thanked Fleissen & Company for organising the
event and said that bringing measurement to the limelight is an excellent
development for measurement professionals. He hopes that discussions at the
Conference result in improved metering and measurement across the value
chain in the Nigerian oil and gas industry.
Ramy Ahmed Diaa

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Upstream production measurement, monitoring and accounting for
field optimisation and revenue maximisation
Eric Toskey, CEO of Letton Hall Group, Texas, USA,
chaired and moderated the session. Eric is known
internationally as a production measurement expert. He
worked on many projects in Nigeria during his time at
Schlumberger and now at Letton Hall Group. Eric
expressed appreciation of Fleissen & Company for
organising the event. He then introduced the theme of
the session and called upon the Lead speaker of the
session, Dr Ali Jama, to make his presentation.
Dr Ali Jama, the Head of Production Domain, Sub-Sahara Africa, Schlumberger,
spoke on Hydrocarbon Flow Measurement in the Context of Field Lifecycle
Optimization.
Dr Jama submitted that the wells count per production
engineer is increasing exponentially because more wells are
being drilled as the operating companies worldwide want to
extract the most out of the existing reserves. He said the
maximum value from flowmeters is realised in reservoir
management and production optimisation when we integrate
the meters' readings with domain models used for day-to-day
reservoir management and field optimisation.
Talking about multiphase flow meters (MPFM), Dr Jama said they are more in
mainstream operation than a few years ago. He confirmed that the efficiency of
MPFMs in terms of production monitoring is quite remarkable for production
optimisation. MPFMs have lower OPEX and CAPEX and a low HSE footprint when
compared to conventional measurement. He also highlighted another flow
measurement technique for reservoir management and production
optimisation, known as Virtual Flow Metering (VFM). Dr Jama presented a case
where VFM was successfully used in North America to help an operator reduce
uncertainty in volume allocation, reduce the penalty for non-compliance with
contractual terms, improve planning and operational decision making. Another
use of VFM where it is impossible to use a physical meter.
An example is in complex multilateral wells, where flow control valves are
installed at each of the laterals. The information from the flow control valve is
combined with downhole pressure and temperature gauges that transmit data
through the fibre optic system to a digital solution. The data obtained from the
measurement serves as input into a hydraulic model for rate estimation and
Dr Ali Jama
Eric Toskey

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prediction. The estimated rate is then used for zonal allocation into the
individual producing zones for production surveillance and optimisation.
Dr Jama urges the participant not to think about measurement alone but how
to control what has been measured. He referenced Sensia, a new company that
Schlumberger and Rockwell formed to deliver one-stop production
management and optimisation solutions. Dr Jama made a clarion call to the
industry to use digitisation and digital capabilities to enhance and harness the
power of measurement for reservoir management and production optimisation.
Engr Tunde Akinpelu, Managing Director at Aiteo Energy
Pipeline, spoke on preserving hydrocarbon value with
proper maintenance of Crude oil metering and
measurement infrastructure.
Engr Akinpelu referred to metering as the common hope
of truth. Engr Akinpelu brought a fresh perspective to the
discussion as a pipeline operator with two custody
transfer points— one from the injector's side and the
other from the terminal operator side. He called the two
custody transfer points "value chain meters". He further
stressed that the oil and gas operation is as good as its metering infrastructure.
For a trunkline that receives oil from 5 injectors and 16 flow stations, the
metering issues are many, and the issues differ across the injectors. All the
speakers before, he said, alluded to the fact that all metering infrastructures
have a certain uncertainty level. This means that, even before drafting a contract
with any of the injectors, one already has an uncertainty that needs to contend
with. One must focus on three fundamentals during the maintenance of
metering infrastructure: to ensure that 1) metering infrastructure is reliable
after maintenance, 2) the infrastructure is available, and 3) the safety of
metering infrastructure. Engr Akinpelu mentioned operational challenges as
metering compliance issues, logistics of movement, malfunctioning of
equipment such as autosampler, increase in oil theft activities, and periodic
unexplained spikes in watercut. Engr Akinpelu called for increase synergy
amongst industry operators, robust security across assets, continuous and
frequent maintenance of metering infrastructure and measurement uncertainty
standardisation across all injecting points.
Engr Tunde Akinpelu

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Ken Uwalaka, the Manager of Production Engineering
and Optimisation at Addax Petroleum, spoke on from
wellhead to export terminal—The criticality of
hydrocarbon measurement and accounting to profitable
oil and gas production.
Ken started by identifying activities carried out before
hydrocarbon accounting, which include metering, data
processing, and data analysis. One critical determinant of
profitable oil and gas production is data. You cannot talk
about profitability without talking about data. He said the industry is facing
many challenges today with the amount of data coming in. You cannot speak
about the profitability aspect without talking about the process—hydrocarbon
accounting.
Ken indicated that hydrocarbon accounting has evolved over the years because
of its criticality to oil and gas production business success. Unfortunately, little
attention is paid to it by most operators. Indeed, one cannot dive into
production accounting without mentioning measurement and allocation. The
allocation could either take the form of engineering or sales allocation.
The science of reconciling fiscally measured hydrocarbons relative to estimated
production from corresponding wells/field/reservoirs is called allocation.
Therefore, the hydrocarbon production accountant is responsible for preparing,
reporting, and storing the wells', platforms', or field's allocated productions
data. Hydrocarbon allocation is required for the following reasons: identifying
ownership of the fluids, providing input to the business planners concerning
liftings and sales, guiding the operations and petroleum engineers in reservoir
studies, field analyses, and production facility operations, and conducting
audits.
While production accounting and allocation could be viewed as a process,
measurement (methods) plays a crucial role in ensuring that this process is
successful and trusted. In emphasising the need for accurate measurement, Ken
said that for a field producing 50 kbls per month, if you have a 1% error in your
crude oil measurement, your profit margin will be deviated by $300,000 at a
crude oil price of $50/bbl.
Ken identified leadership commitment as critical to the hydrocarbon accounting
process. He said that this is where they declare their profit and loss; therefore,
the management should not look at the hydrocarbon accounting unit as a mere
Ken Uwalaka

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support function. According to him, though the technology may be accurate if
the people handling it are not well trained, the quantity of oil produced may be
adequately accounted for by the people managing the process.
Ken emphasised the need to have a process in place for proper hydrocarbon
accounting as hydrocarbon accounting is more process-oriented than data. To
improve the hydrocarbon accounting process in production operations, Ken
recommended effective communication between business units, management
support for a solution-based hydrocarbon accounting system, increased well-
testing frequency, and the deployment of continuous allocation techniques.
Adeeyo Remilekun, the Hydrocarbon Data Advisor at
Heritage Energy Operational Service Limited (HEOSL),
spoke on Multi-stakeholder's production
commingling—Why accurate measurement and
allocation matters?
Remilekun acknowledged the fact that production data is
crucial because it determines what you use in your
allocation. If you have any error in your production data,
it is going to affect your allocation. When you have
production commingled at the flow station, you need to
have an accurate well test and accurate well uptime;
otherwise, it will affect the company that does not have a
processing/production facility. For pipeline allocation, companies should follow
the DPR back allocation procedures to avoid allocation errors.
In emphasising the need for accurate allocation, Remilekun told the participants
that allocation determines the operator's oil revenue. If you want to optimise
your revenue, you must ensure that your allocation is accurate and the
production data that you are reporting is accurate.
In a commingling production, once one of the partners has errors in its
production data, it affects the trust between the stakeholders and the process.
As a stakeholder that commingling into a common facility, if you report a
production data with error this month, the next month when you come with
your data, all eyes would be on your data, people will want to question your
processes, and it will take a while for your data to be trusted by your partners.
Remilekun alluded that inaccurate measurement affects allocation because it
becomes difficult to identify the actual cause of losses. The operator may invest
Adeeyo Remilekun

16
hugely in pipeline security, and the losses may still be there because data from
the measurement has errors in it. Inaccurate measurement affects field
optimisation decision and reservoir management.
Remilekun concluded that, to have accurate allocated volume, each of the
stakeholders commingling their production with other stakeholders should try
as much as possible to eliminate all causes of errors during measurement to the
barest minimum for proper allocation and better company revenue.
Additionally, one other key thing is that the metering team and the hydrocarbon
accounting team must work synergistically. The metering team needs to
understand the methodology that the hydrocarbon accounting team uses to
allocate because the hydrocarbon accountant understands that there is a
penalty attached with a deviation from methodology and procedure.
Edirin Abamwa, the Chief Executive Officer Geotrex Systems, spoke on
Multiphase Well Monitoring: Low-cost solution for
increasing oil well output and profitability.
Edirin thanks Fleissen and Company for organising the
Conference. He said that one heart-warming message
that he got from the Conference was when the DPR
Director pointed out very clearly that multiphase flow
metering application is more for reservoir management.
Edirin said people often confuse the function of a
multiphase flow meter and may ask questions such as
how it compares with a PD meter or a Coriolis meter. They neglect to observe
that the multiphase flow meter measures the rates at unseparated, flowing
conditions, whereas the single-phase meter measures separated fluids at
conditions closer to standard conditions. He mentioned that for close to 5 years,
his organisation has been working to bring multiphase meters into the Nigerian
market. He said they worked with Cranfield University in the UK and Complex
Resources, who developed the multiphase meter in St Peterburg in Russia.
Edirin cautioned on the use of fiscalised production data for back allocation to
wells and reservoirs. He said that the gas plant and flow stations are not
designed to allocate their rate to various wells and reservoirs. He said a
fundamental lesson to every subsurface person listening in this Conference is
that you better get your wellhead rate as quickly as possible before the fluids
Chief Edirin Abamwa
Chief Edirin Abamwa

17
are commingled at a manifold so you can be sure what you are reallocating back
to your reservoirs.
Edirin concluded that if you use fiscalised production volumes to allocate to
wells and reservoirs, your total underground withdrawals would be wrong. Your
material balance would be wrong. Your production forecast would be wrong,
and any talk of reservoir simulation would be an exercise in futility. The lesson
is to grab rates at the wellhead. The cost-effective way of obtaining that rate at
the wellhead is the application of multiphase flow meters.
In closing the session, Eric Toskey reiterated that to optimise a process, one
needs to measure it. It is through measurement and analysis that you recognise
the deviation from what is expected. That presents itself as an opportunity to
improve or to optimise. It is also important to remember that measurement is
vital to business. Hence to maintain a healthy business environment, these
measurements are regulated. In the United States, hydrocarbon measurement
regulations are taken very seriously because they establish a basis for trade.
Take care with measurement because it is critical. In motivating the
measurement professionals, Eric said that he hopes that the NiHMEC inspires
the participating professionals not to hold back but to follow their inclinations
and explore their profession deeply. Our future is calling, and our world needs
your measurement expertise.
Final Remarks
Speaking on behalf of the Director/CEO of DPR, Dr Akenn Musa said the DPR was
incredibly grateful and proud of Fleissen & Company for organising the
Conference. I want to use this opportunity to appeal to all the members and
those who listen remotely to send the following messages across all oil and gas
companies and the captains of industries: It is not just about the money; the
measurement will determine the final profit. I also want to add that the DPR is
an enabler of business. If you have innovative technology, please bring it
forward because we want to see how it will add value to the existing method. If
you measure, you have confidence in what you have produced, and you can do
forecasting; from there, you can now plan your budget. Dr Akenn said he hopes
that this kind of engagement will continue to attract the petroleum industry's
broader participation in future editions.
The conference Chairman, Mr Osten, congratulated the participants and
speakers for a remarkably successful conference. I most thank the Honourable
minster of state for Petroleum, who, because of the mixture of timings, had to

18
delegate Engr Sarki Auwalu, the Director/CEO of DPR, to represent him at this
Conference. He thanks Dr Akenn Musa for his very brilliant delivery as a
representative of the Director of DPR. Referring to Dr Akenn, Mr Osten said, "I
have been part of NiHMEC, and all I can say is that we are most grateful for all
your support and championship of this conference". Mr Osten told the
participants that we all have a general understanding that hydrocarbon
measurement and accounting is the most fundamental in all our business as oil
and gas professionals. In my view, NiHMEC has indeed taken off, and we can
only get better and more prominent from now on. On that note, he invited all
to NiHMEC 2022, which will be held at this same time next year, 2nd
-3rd
February 2022.
Key Outcomes
The outcomes of the Conference are drawn from the presentations by the
speakers, the contribution in the chat section and from the Q&A section. The
key outcomes of NiHMEC 2021 are:
1. All the speakers agreed that there is a need to ensure accurate hydrocarbon
measurement because the measurement is the basis for the company's
revenue. That hydrocarbon measurement must be taken seriously by the
management of oil companies. They believe that adherence to DPR
measurement guidelines and international standards is critical to achieving
accurate hydrocarbon measurement. The speakers pointed out that the data
produced by the measurement devices must be trusted, for any decision
made based on measurement would be trusted.
2. The speakers also agreed on the need to embrace new technologies such as
Multiphase Flow Meters (MPFM) and Virtual Flow Meters (VFM) to unlock
field potentials by optimising production and enhancing reservoir
management. There were many questions regarding DPR's approval of
MPFM and VFM. DPR said that some MPFMs already have the approval to be
used in Nigeria for reservoir management.
3. Many participants were enthusiastic to know the approval process for Virtual
Flow Meters (VFM). The VFMs are mathematical models that use input from
downhole pressure and temperature sensors. For DPR to have an adequate
understanding of how the technology works, there would be a need for a
joint industry project to test the viability of VFM for rate allocation and
reservoir management in Nigeria to see their cost-effectiveness and
technical benefits in terms of production optimisation.
4. Participants believed that time was due for DPR to conduct metering system
audits across the oil and gas operations in Nigeria as there are fiscal metering

19
systems that do not meet current DPR procedure guides and international
standards.
5. The speakers were unanimous on the need for frequent capacity building to
enhance knowledge of personnel handling hydrocarbon measurement and
production data. It was noted that if the personnel are not knowledgeable
on innovative ways to handle production data, a company's revenue which
is based on the data, would be at risk.
6. The speakers have a collective understanding that the back allocation of rate
to wells and reservoir should be based on measurement at the wellhead
rather than using fiscalised volume, which is determined at standard
pressure and temperature. Reservoir management and production
optimisation cannot be successful using fiscalised volume to back allocate to
wells and reservoir. However, a cost-benefit analysis may suffice in deciding
on whether the allocation measurement for well allocation is carried out at
the wellhead or production manifold.
7. All the participants were unanimous on having NiHMEC as an annual event
where the oil and gas professional would gather to discuss and share ideas
about hydrocarbon measurement and accounting.
8. There was a clarion call for the industry to move to use digitisation and digital
capabilities to enhance and harness the power of measurement for reservoir
management and production optimisation.
9. There is a need for frequent maintenance of metering infrastructure and
standardisation of measurement uncertainty across all injecting points. This
means that DPR would have to increase its emphasis on measurement
uncertainty and uncertainty analysis of allocation meters.
10.Investment in measurement infrastructure was identified as critical to
minimising value erosion. There are losses that are associated with oil and
gas production. If the measurement is not accurate, one cannot control the
losses and optimise the value from the assets.
Closing
Dr Sunday Kanshio, NiHMEC Lead, brought the Conference to a closed after
appreciating the Conference Chairman, the Director of DPR, moderators, the
lead speakers, the panellists, and participants.

20
Questions for the DPR and hydrocarbon measurement and
accounting professionals
The following were the questions that some of the participants asked but were
not answered because of time constraint. Hopefully, DPR and other
hydrocarbon measurement and accounting professional would be able to
answer these questions in the next NiHMEC.
1. In addition to statutory meter proving, is DPR looking to make metering audit
and uncertainty determination mandatory for operators?
2. Considering that DPR will examine new metering technology for field
performance for Type Approval...Will DPR provide field test locations, or the
technology provider will source for it? How does DPR help secure such a
place for the test in Nigeria, or can it be done outside of Nigeria?
3. How can MPFM be used for allocation purpose, especially in gas condensate
measurement?
4. Would DPR allow/permit the use of virtual metering? Virtual metering allows
for a reduction of numbers of meters within the production facility or where
metering is not feasible?
5. What is DPR's take on smart and intelligent metering devices? And DPR's
view on how this can be accommodated in Nigeria's applications for metering
at production facilities?
6. Uncertainties in gas measurement can be reduced by 50% if we know our
pipeline's and reservoir's gas compositions. What measures has DPR put in
place to ensure that this measurement accuracy is achieved?
7. What system does the DPR have to contend with operators who do not meter
some of their wells? I know that many operators practise this in Nigeria.
Nigeria is losing a lot by this single practice.
8. How often does the DPR conduct audits on the fiscal metering systems in
Nigeria?
9. How is DPR regulating and monitoring the companies that calibrate meters?

21
10.In oil and gas measurement, a small measurement error could lead to a
massive revenue loss to both the seller and buyer; how can measurement
uncertainties be handled to minimise the occurrence of errors?
11.As Dr Akenn Musa said, you cannot maintain what you did not measure. Also,
I learnt that the DPR is putting significant efforts into ensuring that effective
measurement is carried out in oil and gas sectors across the country, which
is excellent. My questions are, how are those data managed and recorded
for the benefit of our researchers, and how are those data used for climate
action practices to combat Climate change as we all know how great
hydrocarbons contribute to climate change. Thank you.
12.What is the regulator, DPR, doing in the input of measurement architecture
in the planning phase of the IOC designing the measurement system?
13.What measures are in place to reconcile data of losses recorded between the
flow station and the terminals, and who is responsible for this— the
operators or regulators?
14.What levels of uncertainty for both gas and oil metering systems do you
adopt, and which standards do you follow?
15.What is DPR, as a regulator, doing with regards to the BS&W content for
produced water disposal and how it ties into the metering policy going
forward?
16.What is the process for presenting a patented real-time crude oil back
allocation technology and its usage within the industry to DPR?

22
Hydrocarbon Measurement School
List of Courses
1. Fundamentals of production measurement and fiscal metering of
hydrocarbon
2. Crude oil and liquid hydrocarbon measurement
3. Liquid hydrocarbon measurement and custody transfer
• Liquid Coriolis Types/Applications
• Liquid Coriolis Installation Effects
• Liquid Coriolis Case Studies
• Liquid Positive Displacement Metering
• Liquid Turbine Metering
• Liquid Meter Proving
• Liquid Venturi Meters
• Liquid Master Meters
• V-Cone Meters
• Liquid flow meter calibration—all types
4. Liquid Tank Measurement
5. Natural gas Measurement
• Gas Orifice Meters
• Gas Ultrasonic Principles of Measurement
• Gas Ultrasonic Measurement Uncertainty
• Gas Ultrasonic Diagnostics
• Gas Turbine Principles of Measurement
• Gas flow meter calibration—all types
6. Wet gas measurement
7. Multiphase Flow Measurement
• Multiphase Flow in Pipes and Wells
• Multiphase Meters Overview
• Multiphase Meters Gamma Density
• Multiphase Meters Cross Correlation
• Multiphase Meters Fluid Properties Effects
Letton Hall Group, TX

23
• Multiphase Meters Troubleshooting
• Multiphase meter calibration
• Multiphase Meters Case Studies
8. Fundamentals of virtual Flow Metering
9. Tank Gauging and Measurement
10.Fluid sampling and quality determination
• Liquid Sampling
• Gas Sampling
11.Flow instruments and flow computing
• Pressure measurement
• Differential pressure measurement
• Temperature measurement
• Sensor
12.Downhole Measurement
13.Produced water Measurement
14.Flare Gas Measurement
15.Hydrocarbon allocation and production accounting
16.Measurement uncertainty evaluation and analysis
Upstream Production Operations
1. Well Testing Oil Wells
2. Well Testing Gas Wells
3. Sand Removal and Measurement
4. Field Production optimization
5. Integrated Production Modelling
Process Engineering and Flow Assurance
List of Courses
1. Gas pipeline design, operations, and maintenance
2. Gas transportation economics
3. Gas-Liquid Separator Design and Operations
4. Oil Production Facilities Operations, Maintenance and Management
5. Gas Processing facilities Operations, Maintenance and Management
6. Tank farm operations and management
7. Slug catcher design

24
8. Water-Oil Separation
9. Liquid and Gas Flow in Pipes and Wells
10.Asphaltene Deposition and Inhibition
11.Pipe Flow Erosion
12.Corrosion in Pipes and Vessels
13.Scale Formation and Inhibition
14.Wax Formation and Inhibition
15.Production Chemistry
16.Gas Compression
17.Liquid Pumping
18.Optimizing Gas Lift Wells
19.Heat Exchanger Design and Operations
20.Production Chemicals
21.Valve sizing and selection
22.Process and instrument diagram
23.Process safety
24.HAZOP and HAZID Studies
Consultancy Services
1. Measurement, metering, and system audit
2. Measurement uncertainty evaluation and modelling
3. Production data validation
4. Production allocation
5. Flow measurement and fluid property calculations
6. Measurement and allocation investigations
7. Data Surveillance and monitoring

Conference summary and outcomes final

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