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The Nigeria Midstream Downstream Petroleum Regulatory Authority (NMDPRA) is poised to issue four new regulations to oversee the operations of the oil and gas industry’s midstream and downstream sectors.
This was revealed by Joseph Tolorunshe, Secretary and Legal Adviser, NMDPRA, on Wednesday at the General Counsel and Legal Advisers’ Forum in Abuja.
He stated that 12 rules have been gazetted since the passing of the Petroleum Industry Act 2021, and eight more would follow, for a total of 20 gazetted regulations.
Farouk Ahmed, Chief Executive of the NMDPRA, also addressed apparent regulatory overlaps between the NMDPRA and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in his speech.
Ahmed, who was represented by Ogbugo Ukoha, Executive Director, Distribution Systems, Storage, and Retailing Infrastructure, stated that stakeholders and potential investors need regulatory clarity to drive investment decisions and guide operations in order to ensure compliance with legal provisions and avoid reputational damage.
He went on to say that the PIA was created to restructure the sector by establishing a boundary between the upstream, midstream, and downstream value chains in order to promote development and efficiency.
He said the NUPRC is mandated to fully regulate all Upstream operations as defined in Section 318 in the PIA, conduct measurement of crude oil and natural gas produced for the purpose of royalty determination and ensure an arm’s length transfer to midstream operations at measurement points while the NMDPRA on the other hand is saddled with regulating the Midstream and downstream operations whether or not related to a lease..
In relation to sections 25 and 48 of the PIA, he stated that it is critical to understand how the two agencies differ from one another since they have various duties and play different responsibilities in the sector.
Source: Allnews Nigeria
