the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) began the review of midstream and downstream petroleum regulations on Monday.
State Minister for Petroleum Resources Timipre Sylva said the regulations had been shared with stakeholders for review and input.
Mr. Sylva spoke about the new regulations being considered at a stakeholder consultation forum organized by the NMDPRA in Abuja on Monday.
He noted that they will provide clarity to operators and attract investment to the mid and downstream sectors.
“We are now at the point of engagement and interaction with a view to issuing regulations that would benefit all stakeholders,” said Mr. Sylva.
He said the authority is a brainchild of PIA 2021 with responsibility for technically and commercially regulating the downstream and downstream operations of Nigeria’s oil and gas industry.
He noted that the review was in compliance with the provisions of articles 33 and 216 of the PIA 2021.
“We are gathered here today in compliance with the provision of sections 33 and 216 of the PIA 2021 that direct the authority to consult with the relevant interested parties before finalizing and making any resolution on the process of refining, transmission, distribution, supply, sale and storage of petroleum products or any other matter by the authority in relation to the activity of mid and downstream oil operations.
“This administration understands the need for a comprehensive, well thought out and unequivocal regulatory instrument that is carefully developed to meet the present and future aspirations of the 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 standards, processes and procedures,” he said.
While noting that the current state of Nigeria’s local energy landscape is dire and needs ingenious solutions, the minister said that 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 build investor confidence, to increase and enhance foreign and indigenous participation in these sectors, and to optimize value for all of our businesses. concerned parties.
“This will culminate in business enablement, industry growth and creating countless opportunities for Nigerians.”
Also speaking, the executive director of the authority, Farouk Ahmed, explained that the consultation was in line with the mandate of the Petroleum Industry Act, PIA 2021, which mandated that stakeholders must be consulted before it is established. any regulation.
The new regulations address issues such as the transportation and shipment of oil, licenses and permits, the price of gas for the domestic market, gas pipeline fees, the environment, as well as the gas infrastructure fund, among others.
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Mr. Ahmed explained that these regulations are an integral part of putting the PIA into operation and require a collective commitment over the next few days.
He noted that stakeholders have resolved to facilitate policies that enable investment and ease of doing business, create employment opportunities for Nigerians and avoid undue burdens on partners.
“Consequently, our priority will be to ensure that these regulations are the main enablers of the Federal Government’s Gas Decade initiative and will help catalyze investment and improve the attractiveness of the domestic gas value chain.
“We are also aware of the fact that effective regulations must, among many results, guarantee justice, fairness, transparency and certainty for all actors in the regulatory space.
“It is therefore necessary that we give this process our full attention, as the success and quality of our deliberations will significantly determine how our industry evolves in the near future. Our collective actions have a direct impact on unlocking the main energy supply sector of the Nigerian economy.
“Therefore, we implore you to approach this task with the utmost responsibility and patriotism,” he said.