Main Article Content

B. M. Jegede
O. T. Ojo
B. O. Akinnuli


The petroleum industry is faced with measurement problem. This problem could be attributed to low value of petroleum products derived at the time of installation. However, over the years, with increasing crude oil prices of associated petroleum products, there is need to ensure that cargoes loaded and discharged are measured more accurately with minimum loses. Hence, this research focuses on development of an empirical model for oil cargo quantity shipment, discrepancies determinations in Nigerian oil and gas sector. In order to achieve the objectives of this research, collection of data of past shipping activities were carried out. The data collected were statistically analyzed using MATLAB and model was developed as well as a discrepancy predictive software, using Visual Basis Software. The volume correction factor (VCF), a factor used in converting crude oil volume at tank temperature to volume at standard temperature 15oC was determined. The weight correction factor (WCF), a factor used in converting volume of crude oil in barrels to weight in long tons was generated through a model which can be used to get the corresponding weight correction factor at different temperatures. A comparison was done between the results generated from the developed software and the certificate of quantity COQ of crude oil obtained from the Department of Petroleum Resources in the Ministry of Petroleum Resources, Nigeria (July 2019). It was found out that 80 metric ton valued at N12,000,000.00 of crude oil was lost due to the miscalculation of the transported crude oil. With the aid of this software, similar errors in crude oil shipment can be detected and minimized.

Article Details



Anderson, M. G. (1998): Strategic Sourcing, International Journal of Logistics Management.


Anifowose, B., Lawler, D., Horst, D. V. Chapman L. (2008): Transportation in Nigeria's Oil and Gas Industry: An Environmental Challenge” Proceedings of 1st Postgraduate Researchers Conference. ‘Meeting Environmental Challenges in the Coastal Region of Nigeria’, 29 – 30 September, 2008, Dundee, UK.

Aigbedion, I. N. and Iyayi, S. E. (2007): Diversifying Nigeria’s Petroleum Industry, International Journal of Physical Sciences, 2(10): 263-270.

Apata, T. G. (2010): Linkages between Crude-oil Exploration and Agricultural Development in Nigeria: Implications for Relevant Qualitative Data Collection and Analysis to Improve Rural

Economy, Available from: www.fao.org/fileadmin/templates/.../rural/…_2010.4.3_Apata.pdf.

Bhatia, R. and Dinwoodie, J. (2004): Daily oil losses in shipping crude oil: measuring crude oil

loss rates in daily North Sea shipping operations. Energy Policy, Elsevier, 32(6):811–822.

Christina, K. and Aaron, S. “Nigeria’s Criminal Crude: International Options to Combat the Export

of Stolen Oil”. London: Chatham House (September 2013). Available online at: www.chathamhouse.org. retrieved on 15th June 2019.

Emeghara, G. C. and Ndikom, O. B. (2012): Delay Factors Evaluation of Nigerian Seaports: A Case Study of Apapa Ports Complex, Lagos. Greener Journal of Physical Sciences. 2(3):97-106.

Focus L. P. (2016): Tanker Cargo Shortage and Contamination Claims. The London P&I Club. (3):1-3.

Gbadebo, O. O. (2007): Crude Oil and the Nigerian Economic Performance, Oil and Gas Business.

pp 1-27.

Jack, J. A, Chiedoziem, D. U., Azubuike, B. (2016): Crude Oil Exploration and Underdevelopment in Nigeria: A Resource Curse Analysis. Technoscience Review. 7(1-2):32-44

Kato, G. K. (2019): Transportation of Crude Oil in Nigeria Inland Waterways: A Call for Legislative Accountability. In Okene O. V. C (ed) Excellence and Creativity Legal Essays In Honour of His Excellency Chief (Barr.) Nyesom Ezenwo Wike, Executive Governor of Rivers State, (27):463 – 476.

Nwezeaku, N. C. (2010): The impact of public sector financial management on the economies of

Sub-Saharan Africa. International Journal of Finance and Economics, (40): 87-99.

Onwe, O. J. (2012): Economic Implications of Petroleum Policies in Nigeria: An Overview. American International Journal of Contemporary Research. Centre for Promoting Ideas, USA,

(5): 60-71.

Osakhare, E. (2018): Shell Laments Loss of 3.2m Barrels of Crude Oil to Thieves”. Available from: http://www.peoplesdailyng.com/shell-laments-loss-of-3-2m-barrels-of-crude-oil-to-thieves/ retrieved 15th June 2019