The Nigerian Federal Government has recently opened up fresh investment opportunities in the midstream and downstream sectors of the petroleum industry by releasing six new gazetted regulations. The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) unveiled the Midstream and Downstream Petroleum Operations Regulations, Assignment or Transfer of License and Permit Regulations, Petroleum Measurement Regulations, Gas Pricing and Domestic Demand Regulations, Petroleum (Transportation and Shipment) Regulations, and Natural Gas Pipeline Tariff Regulations in Abuja on Wednesday. These regulations were developed in line with the provisions of the Petroleum Industry Act (PIA) 2021 to promote economic growth in the country.
READ ASLO: Seplat Takes Legal Action Against Orjiako for Alleged Deceit and False Representation
Idaere Ogan, the Board Chairman of NMDPRA, commended the management, regulation drafting committee, and relevant stakeholders whose inputs were considered to promote economic growth. Ogan stated that the regulations covered all aspects of the PIA, which would ensure the realization of its benefits. The NMDPRA’s Chief Executive, Farouk Umar, added that 14 other regulations had been developed and will be issued shortly.
Umar emphasized that the PIA framework would support sustainable growth and investment across the oil and gas value chain in Nigeria. He stated that the regulations would enable businesses through regulatory clarity, certainty, fairness, transparency, and best industry standards. The NMDPRA remains committed to collaborating and engaging with industry stakeholders while promoting transparency and accountability in the implementation of these regulations.
The Midstream and Downstream Petroleum Operations Regulations apply to gas and petroleum liquid operations and oil and gas service permits. It covers conformity assessment and technological adaptation, provides for the grant of licenses, and sanctions on violators. The Assignment or Transfer of License and Permit Regulations applies to the approval or consent of authority on all midstream processing facilities, including terminals, pipelines, and blending infrastructure.
The Petroleum Measurement Regulations aim to ensure accurate measurement of the allocation of gas and crude oil and ensure the installation of appropriate measurements by companies and metering of oil and gas operations. The Gas Pricing and Domestic Demand Regulations regulate retail gas pricing, prices of marketing natural gas of the strategic sectors, and identify the unregulated market and make provisions. The Petroleum (Transportation and Shipment) Regulations regulate activities relating to the transportation loading, shipment, and export of crude oil. It prohibits illegal and unauthorized crude oil activities.
The Petroleum (Transportation and Shipment) Regulations are expected to stem crude oil theft and illegal activities. At the same time, the Natural Gas Pipeline Tariff Regulations provide a framework for tariff methodology and transportation of natural gas. In summary, the NMDPRA has developed these regulations to support sustainable growth and investment across the oil and gas value chain in Nigeria, providing regulatory clarity, certainty, fairness, transparency, and the best industry standards.
