Nigerian Petroleum Agency Launches Regulatory Overview
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) commenced the Midstream and Downstream Petroleum Regulatory Review on Monday.
Minister of State for Petroleum Resources Timipre Sylva said the regulations have been shared with stakeholders for review and comments.
Mr. Sylva spoke about the proposed new regulations at a stakeholder consultation forum hosted by the NMDPRA in Abuja on Monday.
He noted that they will bring clarity to operators and attract investment in the midstream and downstream sectors.
"We are now at the stage of engaging and interacting to issue regulations that would benefit all stakeholders," Sylva said.
He said the authority is a creation of the PIA 2021 charged with the responsibility of technically and commercially regulating midstream and downstream operations of the Nigerian oil and gas industry.
He noted that the review complied with the provisions of Articles 33 and 216 of the 2021 PIA.
"We are gathered here today pursuant to the provisions of Sections 33 and 216 of the 2021 PIA which confer the authority to consult with relevant stakeholders before finalizing and taking any resolutions regarding the process of refining, transportation, distribution, supply, sale and storage of petroleum products or any other matter by the authority in connection with the activity of intermediate and downstream petroleum operations.
"This administration understands the need for a comprehensive, well-thought-out and unambiguous regulatory instrument that is painstakingly developed to meet the present and future aspirations of government.
“This is necessary to attract much-needed investment and create opportunities in the sector. Hence the need for stakeholder participation and engagement in the development of regulations, processes and procedures,” he said.
RegulationsWhile noting that the current state of Nigeria's local energy landscape is dire and in need of resourceful solutions, the minister said the nation has an opportunity to improve the situation through these regulations.
He said: "I am aware of the general intent of these regulations, which are to provide clarity and certainty to investors, to promote and enhance investor confidence, to increase and enhance foreign and indigenous participation in these sectors and maximize value for all our stakeholders.
"These will result in business empowerment, industry growth and the creation of myriad opportunities for Nigerians."
Also speaking, the Authority's Director General, Farouk Ahmed, explained that the consultation was in line with the mandate of the Petroleum Industry Act, PIA 2021, which required stakeholders to be consulted before any regulation.
The new regulations deal with issues such as transportation and shipping of oil, licenses and permits, gas pricing for the domestic market, gas pipeline tariff, environment, as well as the infrastructure fund gas, among others.
READ ALSO: Fuel Traders Paid N74 Billion Naira in Seven Months - NMDPRAMr. Ahmed explained that these regulations are integral to the operationalization of the PIA and require collective engagement over the coming days.
He noted that stakeholders have resolved to facilitate policies that will enable investment and ease of doing business, create employment opportunities for Nigerians and avoid excessive burdens on partners.
>"As a result, our priority will be to ensure that these regulations are key enablers of the federal government's Decade of Gas initiative and will help catalyze investment and enhance the attractiveness of the gas value chain. domestic.
"We also recognize that effective regulation must, among many outcomes, ensure justice, fairness, transparency and certainty for all actors in the regulatory space.
"It is therefore necessary that we give our full attention to this process, because the success and quality of our deliberations will significantly determine the evolution of our industry in the near future. Our collective actions have a direct impact on unlocking the main energy supply sector of the Nigerian economy.
"We therefore implore you to approach this task with the utmost diligence...
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) commenced the Midstream and Downstream Petroleum Regulatory Review on Monday.
Minister of State for Petroleum Resources Timipre Sylva said the regulations have been shared with stakeholders for review and comments.
Mr. Sylva spoke about the proposed new regulations at a stakeholder consultation forum hosted by the NMDPRA in Abuja on Monday.
He noted that they will bring clarity to operators and attract investment in the midstream and downstream sectors.
"We are now at the stage of engaging and interacting to issue regulations that would benefit all stakeholders," Sylva said.
He said the authority is a creation of the PIA 2021 charged with the responsibility of technically and commercially regulating midstream and downstream operations of the Nigerian oil and gas industry.
He noted that the review complied with the provisions of Articles 33 and 216 of the 2021 PIA.
"We are gathered here today pursuant to the provisions of Sections 33 and 216 of the 2021 PIA which confer the authority to consult with relevant stakeholders before finalizing and taking any resolutions regarding the process of refining, transportation, distribution, supply, sale and storage of petroleum products or any other matter by the authority in connection with the activity of intermediate and downstream petroleum operations.
"This administration understands the need for a comprehensive, well-thought-out and unambiguous regulatory instrument that is painstakingly developed to meet the present and future aspirations of government.
“This is necessary to attract much-needed investment and create opportunities in the sector. Hence the need for stakeholder participation and engagement in the development of regulations, processes and procedures,” he said.
RegulationsWhile noting that the current state of Nigeria's local energy landscape is dire and in need of resourceful solutions, the minister said the nation has an opportunity to improve the situation through these regulations.
He said: "I am aware of the general intent of these regulations, which are to provide clarity and certainty to investors, to promote and enhance investor confidence, to increase and enhance foreign and indigenous participation in these sectors and maximize value for all our stakeholders.
"These will result in business empowerment, industry growth and the creation of myriad opportunities for Nigerians."
Also speaking, the Authority's Director General, Farouk Ahmed, explained that the consultation was in line with the mandate of the Petroleum Industry Act, PIA 2021, which required stakeholders to be consulted before any regulation.
The new regulations deal with issues such as transportation and shipping of oil, licenses and permits, gas pricing for the domestic market, gas pipeline tariff, environment, as well as the infrastructure fund gas, among others.
READ ALSO: Fuel Traders Paid N74 Billion Naira in Seven Months - NMDPRAMr. Ahmed explained that these regulations are integral to the operationalization of the PIA and require collective engagement over the coming days.
He noted that stakeholders have resolved to facilitate policies that will enable investment and ease of doing business, create employment opportunities for Nigerians and avoid excessive burdens on partners.
>"As a result, our priority will be to ensure that these regulations are key enablers of the federal government's Decade of Gas initiative and will help catalyze investment and enhance the attractiveness of the gas value chain. domestic.
"We also recognize that effective regulation must, among many outcomes, ensure justice, fairness, transparency and certainty for all actors in the regulatory space.
"It is therefore necessary that we give our full attention to this process, because the success and quality of our deliberations will significantly determine the evolution of our industry in the near future. Our collective actions have a direct impact on unlocking the main energy supply sector of the Nigerian economy.
"We therefore implore you to approach this task with the utmost diligence...
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