TENECE' PIA REVENUE COLLECTION DIGITAL IMPLEMENTATION STRATEGY.pptx

Implementation plans for Oil and gas conference

1. IMPLEMETING THE PETROLEUM INDUSTRY ACT (PIA) 2021. DIGITAL IMPLEMENTATION OF REVENUE COLLECTION FOR GOVERNMENT AND HOST COMMUNITIES . Powered by: TENECE’ - 2022.

2. SAFETY MOMENTS Empowerment reduces poverty level and crime rate. Proper management of the Fund would create a hostile free environment for all. Enable Educational based infrastructures amongst others. Educational interventions would curb crime and save our society. A Chain is as long as the weakest Link. Hence digitization would guarantee closure to every loophole.

3. RESPONSIBILITY STRUCTURE The Commission At the center of the project. Writes to inform all the producing companies of the implementation of the revenue generation aspect of the PIA through autmation of the systems. Tenece & Partners Responsible for the deployment of automation project using her resources. Liases with all the stakeholders. Community Trust Boards Companies Guiding Framework Implementation Strategy Management of the Trust fund. This covers all the Host communities impacted by Oil and Gas Activities as stipulated in the PIA. This includes the National Oil and Gas Companies (NNPC/NPDC), IOCs, Independents and Marginal field operators. The PIA Revenue mandate: Royalties, Gas Flare Penalties, Host Community Trust Funds, Penalties on non deployment of Various Metering systems on deployment gates. Tenece to develop workscope and present to the Commission for approval. Tenece to Handle End to End Revenue collection digitization;

4. Challenges Monitoring , reconciliation of production numbers real-time at production sites. Lack of raw data for authorities to make informed decisions real-time. Poor, incoherent, improper and Inadequate production numbers that leads to shortchange in Revenue. Lack/Poor payment of Govt takes given the management and payment/remittance model in place.

5. Fixing The Challenges T enece, an IT expert in automation of processes would deploy her reources to fixing the challenges. This would entail the deployment of IoT in Supervisory Control and Data Aquisition (SCADA) based technology. Tenece and her Partners (KGG) will deploy SCADA systems on all the fields (159 Oil Fields - 1481 Wells) and migrate to a central systm. From the Central Office @ HMI, where all production numbers in Oil, Gas, Flared Gases shows, connectivity to Revenue Platform would be established. Production numbers in terms of Oil (Technical Allowable/ Nomination of sales), Flared Gases and Utilized Gases for Royalties Communities and Penalties shows shows here and are utilized.

6. Revenue Roadmap 4 2 3 Disbursement of Govt Takes, Community Takes against each company and Management fee for Tenece. Automation of sales proceeds at CBN to Process Management Company (TENCE dedicated account) Run an automated reconciliation Report and send to all authorities. Direct Data on Techincal production Allowable and Lifting approvals from the Commission . 1

7. COVERAGE SCOPE OVERVIEW: Commission to Write all the Producing Companies, Operators Host Communities of the automation of the production Metering Systems (LACT for Oil and Gas Turbine Meters or any other. TENECE to be responsible for the full automation of the Metering systems of all the 159 fields. TENECE to be responsible for the integration of the HMI at the control room at an agreeable location or commissions office or TENCE’S Office . TENECE to set up a Disaster Recovery site. TENECE to provide security firewalls on the entire SCADA systems and Disaster site. TENECE to do all software integrations .

8. Schedule Inuaguration and Contract Award to TENECE – 1month (Starting March/April). Commissions writes the Companies and Communities Trust Boards – 1 month. TENECE Tours all the Fields – 3months (3 Teams) Long Lead Procurements- 3months. Field Work-6 month. Offsite HMI development and integration works.- 2Months. CBN, Banks, Commission Integration.- 3Months NOTE: Most of the Activities will run cuncurrently .

9. FUNDING: Tenece will fund the project from Start to completion. This will include securing and puting in place a disaster recovery site for all data . The Commission to Mandate Operators to install Gas mtering systems at the Flare Stack. Where this does not exist, TENECE shall install at a premium.

10. Thank you