Petroleum authority launches regulations to promote transparency in oil, gas business

THE Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has launched a six-priority Midstream and Downstream Petroleum Regulations. 

The regulations launched are geared towards promoting transparency and enabling business environment in Nigeria’s oil and gas business.

The new regulations are Midstream and Downstream Petroleum Operations Regulations, 2023; Assignment or Transfer of Licence and Permit Regulations, 2023; Petroleum Measurement Regulations, 2023; Gas Pricing and Domestic Demand Regulations, 2023; Petroleum (Transport and Shipment) Regulations, 2023; and Natural Gas Pipelines Tariff Regulations, 2023.

Speaking today at the official launch ceremony in Abuja, the Authority’s chief executive, Farouk Ahmed, said the regulations would no doubt aid the Authority in controlling processes, setting standards, and monitoring operations in the technical and commercial aspects of the midstream and downstream petroleum sector in Nigeria, as well as provide internally generated revenue for the Authority.

Ahmed described the Petroleum Industry Act (PIA) 2021 as the key legislative instrument that governs the business of petroleum operations in Nigeria and sets the rules for all activities in the petroleum sector.

Farouk noted that the NMDPRA had consulted with relevant stakeholders on the regulations, adding that they would help to drive transparency in the oil and gas business and enable it become globally competitive.

Giving further insights, Ahmed said the Midstream and Downstream Petroleum Operations Regulations 2023 would regulate operations of the companies in the Nigerian midstream and downstream petroleum sector, provide procedures for the grant of licences, permits, authorizations and payment of fees; and provide sanctions and penalties for non-compliance.

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He said that the Assignment or Transfer of Licence and Permit Regulations, 2023 was designed to establish procedure for assignment or transfer of licence or permit by licensee or permit holder; prescribe fees for such assignments or transfer, and provide sanctions or administrative penalties for failure to comply with the regulations.

Accordingly, Gas Pricing and Domestic Demand Regulations, 2023 is to regulate the prices of marketable natural gas of the strategic sectors under the Act, identify the unregulated markets and make provisions for such markets.