The federal government through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has launched a six-priority Midstream and Downstream Petroleum Regulations in Abuja on Wednesday.
The new regulations are: Midstream and Downstream Petroleum Operations Regulations, 2023, Assignment or Transfer of License and Permit Regulations, 2023; Petroleum Measurement Regulations, 2023;. Gas Pricing and Domestic Demand Regulations, 2023; Petroleum (Transport and Shipment) Regulations, 2023 as well as Natural Gas Pipelines Tariff Regulations, 2023.
Speaking during the unveiling of the regulations tagged “launching of midstream and downstream petroleum regulations”, the Authority Chief Executive, Farouk A. Ahmed, noted that the 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 as well as provide internally generated revenue for the Authority.
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He stressed 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.
The Act, Farouk noted, 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 regulations.
Breaking down the regulations, chief executive said Midstream and Downstream Petroleum Operations Regulations, 2023 will regulate the 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 while the Assignment or Transfer of License and Permit Regulations, 2023 is to establish Procedure for Assignment or transfer of license 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.
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.
