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NMDPRA unveils 6 new regulations for oil, gas industry

. Inaugurates oil and gas industry service permit portal

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

The News Agency of Nigeria (NAN) reports that the regulations, which were unveiled on Wednesday in Abuja, included the Midstream and Downstream Petroleum Operations Regulations and Assignment or Transfer of License and Permit Regulations.

Others are the Petroleum Measurement Regulations; Gas Pricing and Domestic Demand Regulations; Petroleum (Transportation and Shipment) Regulations; and Natural Gas Pipeline Tariff Regulations.

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

Ogan, while commending the management, regulation drafting committee and relevant stakeholders whose inputs were considered as expected by the PIA said the regulations covered all aspects of the PIA to promote economic growth.

The Authority Chief Executive NMDPRA, Farouk Umar, said in addition to the six regulations being inaugurated, 14 other regulations have been developed and shall be issued shortly.

Umar said the PIA emplaced a framework for the development of the relevant regulations that would support sustainable growth and investment across the oil and gas value chain in Nigeria.

“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.

“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.

In an overview, NMDPRA Legal Adviser/Secretary, Dr Joseph Folorunsho, said the Midstream and Downstream Petroleum Operations Regulations applied to gas and petroleum liquid operations and oil and gas service permits.

Folorunsho said it bordered on conformity assessment and technological adaptation and also provided for the grant of licenses and sanctions on violators.

He said the Assignment or Transfer of License and Permit Regulations applied for approval or consent of authority on all midstream processing facilities including terminals, pipelines and blending infrastructure.

“The objective of the Petroleum Measurement Regulations is to ensure accurate measurement on allocation of gas and crude oil and ensure 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 makes provisions.

“Petroleum (Transportation and Shipment) Regulations regulate 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 the Petroleum (Transportation and Shipment) Regulations are expected to stem crude oil theft and illegal activities while Natural Gas Pipeline Tariff Regulations provide a framework for tariff methodology and transportation of natural gas.

…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.

Industry service permit portal

The NMDPRA also inaugurated the Midstream and Downstream Oil and Gas Industry Service Permit (MDOGISP) application portal to enhance effective service delivery.

The portal, which will be effective from March 31, is aimed at enabling issuance of valid permits to companies or operators for operations in the oil and gas industry.

The portal is strictly for operators wishing to provide services in the midstream and downstream sector of the petroleum industry, and also aims to boost revenue for the organisation.

Speaking at the inauguration of the portal, the Executive Director, Distribution Systems, Storage and Retailing Infrastructure, NMDPRA, Ogbugo Ukoha, said the development is in accordance with Petroleum Industry Act (PIA), 2021.

According to him, the permit will be issued in three categories, namely general major and specialised categories.

Ukoha said the unveiling of the application portal and the six gazetted regulations in the midstream and downstream petroleum industry were highpoints for the authority, as it approached the 18th month of its constitution.

General Manager, Information Communication and Technology, NMDPRA, Mrs Anne Omezi, said the Authority, under the PIA, is mandated to provide the service to the midstream and downstream sector.

She said that no company or person would be engaged by any licensee or operator without a valid permit issued on the portal.

Omezi said the licensees and operators were not expected to allow anyone render services to them without having a valid permit issued by NMDPRA.

“The general category addresses artisans who want to perform services in this space, while major and specialised categories process and verify skills as well as places of service.

“You can access the portal through its website www.nmdpra.gov.ng for inquiries and feedback,” she said.

Omezi urged the regional directors and coordinators to drive the awareness to all stakeholders. (NAN)

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