The federal government on Wednesday launched six regulations to govern the activities of the midstream and downstream sector of the Nigerian petroleum industry.
The regulations, which were presented by the Joseph Tolorunse, the secretary/legal adviser to the Nigerian Midstream, downstream petroleum regulatory Authority, (NMDPRA), in Abuja include: midstream and downstream petroleum operations regulations; Natural gas pipeline tariffs regulation; gas pricing and domestic demand regulations.
Others are: Assignment or transfer of licence and permit regulations; Petroleum measurement regulations and Petroleum (transport and shipment) regulations.
According to him, these regulations aims to promote industry growth and best practices among industry players as enshrined in the petroleum industry Act.
“These regulations will also provide for strict sanctions in case of defaults, help to boost our revenue generation.
“The regulations will help address cases of illegal movement of petroleum products as companies will be expected to first submit advance lifting schedules to the Authority before lifting are made.
“No tanker or shipment will be allowed to move without complete documentation. This will also help to address oil theft,” he said.
In his remark, the Authority’s chief executive, Farouk Ahmed stated that the regulations have been designed to promote growth in businesses through regulatory clarity, certainty, fairness, transparency, and best Industry standards.
“In addition to the regulations being launched, fourteen (14) other regulations have been developed and shall be issued
shortly.
According to Ahmed, the Petroleum Industry Act (PIA) 2021 remains 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 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.”
“The Authority remains committed to collaborating and engaging with our industry stakeholders whilst promoting transparency and accountability, in the implementation of these regulations.
Anne Omezi, the general manager, Information technology, said that effective from March 31st, 2023, no company whether artisans or major oil companies will be allowed to operate without a valid permit.
