NMDPRA harps on investment, transformative impacts of PIA in US

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has pitched the investment opportunities and the transformative impacts of the Petroleum Industry Act (PIA) as key decision-makers gathered in the US.

Addressing delegates at the 2024 Society of Petroleum Engineers (SPE) International Annual Technical Conference and Exhibition, held at the New Orleans, Louisiana, NMDPRA, in a presentation said the implementation of PIA is a game changer.

The paper, authored and presented by Okechukwu Nwankwo and Aminu Ringim, who are key staff of the regulator highlighted the PIA’s potential to drive economic prosperity and sustainable development in Nigeria.

Executive Director of Health, Safety, Environment, and Community (HSEC) at the NMDPRA, Dr. Mustapha Lamorde, led the session and emphasized how the PIA addresses long-standing challenges in Nigeria’s oil and gas sector, such as energy security, infrastructure decay, and tensions with host communities.

Lamorde discussed the PIA’s governance structure, fiscal transparency, and regulatory philosophy, aimed at fostering a more efficient and accountable industry.

The PIA 2021 provides a comprehensive framework to resolve operational challenges that stem from the outdated Petroleum Act of 1969.

It introduces key objectives such as recognizing distinct streams of upstream, midstream and downstream as viable economic entities, setting clear regulatory frameworks, and improving governance. It also emphasizes transparency in government accounting and the implementation of value-adding initiatives, such as acreage delineation, field development plans, third party, open access and network code.

The paper further outlined the strategic steps necessary to fully implement the PIA, stressing the importance of a growth mindset within the industry.

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Lamorde urged industry stakeholders to adopt innovative approaches that align with the Act’s objectives.

Representatives from major international oil companies (IOCs), including Chevron and Shell Petroleum Development Company (SPDC), were present at the event.

They commended the NMDPRA for providing clarity to investors and promoting business opportunities in Nigeria’s oil and gas sector.

However, they emphasised the need for improved collaboration between the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the NMDPRA to ensure the PIA’s success and prevent duplication of regulatory requirements.

The successful implementation of the PIA is expected to position Nigeria as a leading player in the global oil and gas industry, ensuring long-term economic growth and sustainable development.

While stressing the crucial role of regulatory bodies like the NMDPRA in shaping the future of Nigeria’s oil and gas sector, the presentation noted the efforts of the NMDPRA’s Chief Executive, Farouk Ahmed, whose leadership they noted has been instrumental in creating an environment conducive to investment in Nigeria’s midstream and downstream sectors.

Under Ahmed, the presenters noted that NMDPRA has successfully implemented key initiatives that promote energy security, attract investments, and encourage stakeholder engagement to strengthen Nigeria’s potential for growth in the global oil and gas market.