• Oil & Gas - News
  • Updated: August 01, 2022

Authority Begins Review Of Petroleum Regulations

Authority Begins Review Of Petroleum Regulations

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has started a review of the midstream and downstream petroleum rules to leave the industry legislation and policies that will encourage investment in the industry.

Chief Timipre Sylva, the Minister of State for Petroleum Resources, stated at the NMDPRA stakeholder engagement event on regulations on Monday in Abuja that the regulations had been shared with stakeholders for evaluation and input.

The 10 rules that must be taken into account include the Regulations on the Assignment and Transfer of Licenses and Permits and the Regulations on Petroleum (Transportation and Shipment).

Midstream and Downstream Petroleum (Operations) Regulations, Petroleum Pipeline Regulations, Domestic Demand and Delivery Regulations for Gas Pricing, and Natural Gas Pipeline Tariff Regulations are some of the rules.

The Midstream and Downstream Gas Infrastructure Fund Regulations, Environmental Remediation Funds Regulations, Environmental Regulations for Midstream and Downstream Operations, and Midstream and Downstream Decommissioning and Abandonment Regulations are additional.

The minister declared, "We are now at the stage of engagement and interaction to release regulations that would benefit all parties."

The authority was given the duty of technically and commercially regulating both the mid and downstream operations in the industry, according to the minister, with the passing of the Petroleum Industry Act of 2021.

According to him, the evaluation satisfied the requirements of Sections 33 and 216 of the PIA 2021.

This required the NMDPRA to engage with relevant parties before finalising regulations for the processing, refining, transmission, distribution, supply, sale, and storage of petroleum products, as well as any other things, deemed necessary.

“This administration understands the need to have all-encompassing, well thought-out, and unambiguous regulatory instruments that are painstakingly developed to meet the present and future aspirations of the government.

“The regulations are required to attract much-needed investments and create opportunities in the sector; hence the need for stakeholders' participation and engagement in developing regulations, processes and procedures.

“Before this event, the authority has initiated and proposed ten different regulations which span operations, pricing and environmental management, in line with its statutory mandate.

“Whilst noting that the current state of our local energy landscape is dire and needs ingenious solutions, we have an opportunity to ameliorate the situation through these sets of regulatory instruments,” he said.

He said the regulations will encourage foreign and domestic participation in key industries, promote and strengthen investor trust, provide clarity and certainty for investors, and maximize value for all stakeholders.

These, he claimed, would add up to business facilitation, industrial expansion, and the creation of numerous possibilities for Nigerians.

In a speech, Farouk Ahmed, Authority Chief Executive, NMDPRA, stated that the innovation, among others in the PIA, was in line with the goals and dedication of the minister of state and President Muhammadu Buhari.

Ahmed, while extending appreciation to the ninth National Assembly who ensured the passage of the PIA, said Section 216 of the PIA mandated the authority to ‘consult with stakeholders before finalising amendments to regulations.

However, he said it did not consider this an obligation or box-ticking exercise as continuous engagement with its stakeholders to enable their business was at the core of its regulatory philosophy.

“Accordingly, our priority will be to ensure these regulations are primary enablers of the Federal Government’s Decade of Gas initiative and will help catalyse investment and enhance the attractiveness of the domestic gas value chain,” the NMDPRA boss said.

In a remark, Chairman Senate Committee on Petroleum (Downstream), Sen. Sabo Mohammed, said the passage into law of the PIA was a watershed in the legislative history of the nation.

Mohammed, represented by its Vice Chairman, Sen. Philip Aduda, said it was expected that, as secondary legislation, the regulations would complement the PIA in unlocking the vast potential of the midstream and downstream sector. 

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