In line with arrangements of the Petroleum Industry Act (PIA), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has actually introduced 6 guidelines to guarantee clearness and promote the ease of doing service in the midstream and downstream operations of the oil and gas sector.
The guidelines were; Midstream and Downstream Petroleum Operations Regulations 2023, Petroleum Measurement Regulations 2023, Assignment or Transfer of Licence and Permit Regulations 2023, Natural Gas Pipeline Tariffs Regulations
2023, Gas Pricing, Domestic Demand and Delivery Regulations 2023, and Petroleum (Transportation and Shipment) Regulations 2023.
The policies were anticipated to assist the Authority in managing procedures, setting requirements, and keeping an eye on operations in the technical and industrial elements of the country’s midstream and downstream petroleum sector
The Authority Chief Executive (ACE) of the NMDPRA, Farouk Ahmed who spoke at the launch on Wednesday in Abuja, revealed that besides the 6 policies, 14 others have actually been established and would quickly be introduced. He included that the PIA emplaced a structure for the advancement of the appropriate guidelines that would assist support and drive sustainable development and financial investment throughout the oil and gas worth chain.
He stated: “The Petroleum Industry Act (PIA) 2021 is the crucial legal instrument that governs business of petroleum operations in Nigeria and sets the guidelines for all activities in the Petroleum sector. The Act emplaced a structure for the advancement of the pertinent guidelines that will support sustainable development and financial investment throughout the oil and gas worth chain in Nigeria.
“Accordingly, the NMDPRA in assessment with appropriate stakeholders has actually established the guidelines. Our guidelines have actually been developed to allow services through regulative clearness, certainty, fairness, openness, and finest Industry requirements.
“In addition to the guidelines being introduced, fourteen (14) other guidelines have actually been established and will be released quickly.”
While applauding the Authority’s Regulations Drafting Team for a task well done, the ACE provided guarantees of the Authority”s dedication to “teaming up and engaging with market stakeholders whilst promoting openness and responsibility, in the execution of these policies.”
The ACE who likewise introduced the Midstream and Downstream Oil and Gas Industry Service Permit (MDOGISP) website to balance all the provider for the market, kept in mind that with result from March 31st, 2023, any business preferring to do organization with the Authority should be signed up and provided an authorization.
Board Secretary/Legal Adviser, NMDPRA, Joseph Folorunsho who discussed that the policies would offer the essential sanctions and charges for non-compliance, kept in mind that the Petroleum Measurement Regulations 2023 would assist suppress oil theft and losses as it would assist identify the basis for computing profits accumulating to federal government, licensees, specialists and all other celebrations in the midstream and downstream operations.
“Meters need to now be set up in all the measurement points throughout the sector which we have actually not had prior to. Now there is no other way an operator can really run without setting up a suitable measurement system. If you set up. a suitable measurement system, absolutely it will stem the wave of petroleum losses through theft in the worth chain.
“It likewise defined that the technique of measurement needs to be authorized. You can pass by a private measurement approach like in the old where operators utilize systems that fit them. It is no longer enabled. If you are going to utilize a fixed and vibrant measurement system, it needs to be authorized by the authority.
“And stiff charges vary from financial charges to even shutdown if possible. A shutdown without any oil circulation, however then if it concerns a circumstance where we need to shut you down, you will be closed down.
“Compliance is not just a governance concern however likewise a significant problem for functional authority, the authority will hammer on compliance when things fail.”
