Nigeria's oil regulator is set to bring in a new rule that requires oil producers to obtain an export permit, vessel clearance and a unique identification number to enable real-time tracking of cargoes, based on regulations seen by Reuters.

The government said the updated regulations are designed to enable real-time monitoring of oil cargo exports, aiming to combat theft and under-declaration at export terminals, and thereby significantly enhance new rules mark a significant departure from the previous government revenue.

The system only required producers to declare cargoes to customs authorities for export permit issuance.

"The new guidelines represent a significant step toward a more transparent, accountable and efficient oil export regime in Nigeria," the spokesperson for the regulator said.

Revenue loss

Reinforcing the necessity of these changes, Ayodele Oni, an energy lawyer at Lagos-based Bloomfield law firm, said the previous system was not equipped for real-time tracking.

"This deficiency led to issues such as under-reporting, theft, revenue loss and mismatches in export data," Oni said.

Under the revised framework, known as the Nigerian Upstream Petroleum Advance Cargo Declaration Regulation, exporters must file comprehensive details of the vessel and cargo in advance, including the consignee, port destination, tonnage and estimated time of arrival.

Strict compliance with these new regulations is mandatory and non-compliance carries potential penalties of up to $20,000.