NMDPRA commences streamlining of regulations in petroleum industry

The Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has unveiled plans to streamline operations regulations in the industry into a single document.

The proposed 2024 Midstream and Downstream Petroleum Operations Regulations will enable the Authority to reduce the complexities of navigating and implementing numerous regulations in the petroleum industry.

The Managing Director of NMDPRA, Engr. Farouk Ahmed, while speaking at a stakeholders’ engagement on the proposed operations regulations on Tuesday in Abuja, said the event was in accordance with Section 216 of the Petroleum Industry Act, which mandates consultation with stakeholders prior to the finalisation of regulations made under the Act.

The MD, who was represented by the Director of Distribution System, Storage, and Retailing Infrastructure, Mr. Ogbugo Ukoha, stated that the proposed Operations Regulations would consolidate 12 of the Authority’s earlier gazetted or published regulations into a single document.

He said, “The consolidation process has enabled us to address the inconsistencies in the regulatory space and to engender further compliance with the PIA and regulations made hitherto. It is also a commitment to promoting ease of doing business in Nigeria.”

Ukoha said the regulations will be read in conjunction with other regulations made by the Authority, including the Midstream and Downstream Petroleum Fees Regulations, which provide for the prescribed fees for midstream and downstream petroleum activities.

It is expected that the Midstream and Downstream Petroleum Fees Regulations, following a successful stakeholder consultation and having received the approval of the Honourable Ministers of State for Petroleum Resources, will soon be published in the Federal Government Gazette.

The Director of Legal, Dr. Joseph Tolorunse, while giving an overview of the 2024 midstream and downstream operations regulations, said the objective of the regulation was to consolidate all 16 drafted regulations and streamline them for ease of reference.

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He said, “We discovered that having numerous regulations will be so unworthy for the industry to follow through, but when we have the same regulations that talk about the midstream and downstream value chain, then it will be easy for people to understand and refer to it.

“The operations regulations regulate companies in the midstream and downstream industry as they talk about activities relating to transportation, loading, and shipment of natural gas, and also the assigning of licenses and making them accessible to the public.”

He added that the regulations also talk about fines and penalties that will be applied in case of any breach.

“The regulation is structured in such a way that it captures some of the existing regulations and tries to harmonise them, adding that it includes the midstream and downstream code of conduct regulations, as well as regulations on licenses, permits, and authorizations, and several aspects of the PIA,” he stated.