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Oil, Gas Sector Gain As NMDPRA Releases 6 New Regulations
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has published six gazetted regulations to encourage investment and economic growth in the petroleum industry’s midstream and downstream sectors, as well as to increase revenue generation.
The laws, which were unveiled in Abuja yesterday, would foster long-term growth in the mid-and downstream sectors.
The Midstream and Downstream Petroleum Activities Regulations and the Assignment or Transfer of License and Permit Regulations were among them.
Petroleum Measurement Rules, Gas Pricing, and Domestic Demand Regulations, Petroleum (Transportation and Shipping) Regulations, and Natural Gas Pipeline Tariff Regulations are among the others.
Idaere Ogan, the chairman of the NMDPRA Board, said during the unveiling that the Petroleum Industry Act (PIA) 2021 permitted the establishment of the regulations to actually implement the PIA’s advantages.
Ogan said the regulations covered all parts of the PIA to support economic growth and thanked the management, the regulation-drafting committee, and the pertinent stakeholders whose views were taken into account as requested by the PIA.
In addition to the six regulations being introduced, Authority Chief Executive NMDPRA, Mr. Farouk Umar, stated 14 further regulations have been created and will be published soon.
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, and best industry standards.
“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 included provisions for the granting of permits and sanctions against offenders, according to Folorunsho, and it touched on conformity assessment 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 the allocation of gas and crude oil and ensuring the 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 said that the Petroleum (Transportation and Shipping) Rules were intended to prevent crude oil theft and unlawful activities, while the Natural Gas Pipeline Tariff Regulations offered a framework for tariff methodology and natural gas transportation.