NMDPRA Releases Six New Rules For Oil, Gas Sector

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has announced six gazetted regulations to promote investment and economic growth in the midstream and downstream sectors of the petroleum industry.

The Assignment or Transfer of License and Permit Regulations and Midstream and Downstream Petroleum Operations Regulations were two of the rules that were introduced on Wednesday in Abuja, according to NAN.

Together with this, there are the Petroleum Measurement Rules, Gas Pricing and Domestic Demand Regulations, Petroleum (Transportation and Shipping) Regulations, and Natural Gas Pipeline Tariff Regulations.

Speaking at the unveiling, Idaere Ogan, NMDPRA Board Chairman, said the Petroleum Industry Act (PIA) 2021 provided for the development of the regulations to actualise the benefits of the PIA.

While praising the management, the regulation-drafting committee, and the pertinent stakeholders whose contributions were taken into account as requested by the PIA, Ogan stated that the regulations covered all facets of the PIA to encourage economic growth.

In addition to the six regulations that are being introduced, 14 further regulations have been created and will be published soon, according to Farouk Umar, Authority Chief Executive NMDPRA.

According to Umar, the PIA established a framework for the creation of the necessary rules to promote sustainable growth and investment throughout Nigeria's oil and gas value chain.

“Accordingly, the NMDPRA in consultation with relevant stakeholders, has developed the regulations which have been designed to enable businesses through regulatory clarity, certainty, fairness, transparency, andbest industry standards.

“I would like to commend all our stakeholders who contributed to the development of these regulations.

"In particular, my thanks goes to the Authority’s Regulations Drafting Team who worked tirelessly to deliver on this critical assignment.

“The Authority remains committed to collaborating and engaging with our industry stakeholders whilst promoting transparency and accountability, in the implementation of these regulations,’’ he said.

The Midstream and Downstream Petroleum Operations Regulations applied to gas and petroleum liquid operations as well as oil and gas service permits, according to Dr. Joseph Folorunsho, NMDPRA Legal Adviser/Secretary.

It also allowed for the granting of permits and the imposition of penalties on offenders, according to Folorunsho, and it touched on conformity evaluation and technological adaptation.

He said that all midstream processing facilities, including terminals, pipelines, and infrastructure for blending, were subject to the Assignment or Transfer of License and Permit Regulations, which sought approval or assent of authorities.

“The objective of the Petroleum Measurement Regulations is to ensure accurate measurement on allocation of gas and crude oil and ensuring installation of appropriate measurement by company and metering of oil and gas operations.

“Gas Pricing and Domestic Demand Regulations regulates retail gas pricing, prices of marketing natural gas of the strategic sectors, and identifies the unregulated market and make provisions.

“Petroleum (Transportation and Shipment) Regulations regulates activities relating to transportation loading, shipment and export of crude oil.

"It prohibits illegal and unauthorised crude oil activities, among others,” Folorunsho said.

He explained that while the Natural Gas Pipeline Tariff Regulations offered a framework for tariff methodology and the transportation of natural gas, the Petroleum (Transportation and Shipping) Regulations was supposed to stop crude oil theft and unlawful activities.