Petroleum regulator urges operators to obtain licenses or face penalties

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMPDRA) has urged oil industry operators without license, especially those conveying about 500 litres of petroleum products, to get their licenses or be penalised.

Ogbugo Ukoha, executive director, Distribution Systems, Storage and Retailing Infrastructure said this at a stakeholders engagement on gas utilisation in Nigeria, held in Abuja Monday.

Ukoha warned that from June 1, defaulters will no longer be allowed to load or distribute petroleum products as well as he explained that the agency’s license procedure will go through what your equipment is, the distance, the hazards, procedures and everything.

He added that depot or licensed operators that supply petroleum products to an unlicensed facility would also be penalized.

“However, if there is no compliance, we can assure you from the Authority that from 1st June, there will be no license no loading. Any depot, any licensed operator who supplies petroleum product to an unlicensed facility, we will shut down that operator; As a regulator, we prefer that people comply to avoid adverse effects on their businesses,” he said.

He appealed to operators that handle over 500 litre storage, to obtain their licenses and comply with the provisions of the Petroleum Industry Act, (PIA) and the NMPDRA regulations.

Ukoha urged operators and businesses to take advantage of the evolving opportunities in the gas value chain for sustainable business growth by positioning their energy needs to embrace gas derivatives (LNG, LPG, CNG, Auotogas, Propane & Butane) in order to hedge against future global uncertainties to Diesel supply.

In his welcome address, Farouk Ahmed, Chief Executive Officer, NMPDRA, who was represented by Mustapha Lamorde, Executive Director, Health, Safety, Environment and Community urged petroleum operators and consumers to embrace the advantage of different fuels particularly gas.

“We seek to encourage large consumers of petroleum products to not only operate within the regulatory space but also to become aware of the comparative advantages between the different fuels particularly gas which has been designated as Nigeria’s transition fuel,” he said.