The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Wednesday unveiled six regulations that will govern the activities of the midstream and downstream sector of the Nigerian petroleum industry.
The event took place at the NMDPRA headquarters Auditorium in Abuja.
The new regulations address issues such as petroleum transportation and shipment, assignment or transfer of licenses and permits, gas pricing for domestic demand and delivery, natural gas pipeline tariffs, petroleum measurement and midstream and downstream petroleum operations.
Speaking at the event on Wednesday, the secretary/legal adviser, Joseph Tolorunse, said these regulations aim to promote industry growth and best practices among industry players as contained in the petroleum industry Act.
“These regulations will 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.
“Provides internally generated revenue for the Authority,” Mr Tolorunse said.
Also speaking, the authority’s Chief Executive, Farouk Ahmed, said the regulations have been designed to enable businesses through regulatory clarity, certainty, fairness, transparency, and best Industry standards.
“In addition to the regulations being launched, fourteen (14) other regulations have been developed and shall be issued shortly,” he said.
He explained that the Petroleum Industry Act (PIA) 2021 is the key legislative instrument that governs the business of petroleum operations in Nigeria and sets the rules for all activities in the Petroleum sector.
He added that the act emplaced a framework for the development of the relevant regulations that will 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 following regulations: Midstream and Downstream Petroleum Operations Regulations, Petroleum Measurement Regulations, Assignment or Transfer of Licence and Permit Regulations, Natural Gas Pipeline Tariffs Regulations, Gas Pricing, Domestic Demand and Delivery Regulations and Petroleum (Transportation and Shipment) Regulations,” he said.
He, however, commended all stakeholders who contributed to the development of the regulations.
He noted that the authority remains committed to collaborating and engaging with industry stakeholders whilst promoting transparency and accountability in the implementation of these regulations.