Oil & Gas
THE Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, yesterday, unveiled six new regulations for the oil and gas industry, saying they will support sustainable growth for the mid and down streams sectors.
Speaking at the unveiling in Abuja, the Chairman of the NMDPRA Board, Idare Ogan said the new rules have provided clarity for both the operators and regulators in the industry.
Ogan explained that the regulations which derive from the Petroleum Industry Act 2021 would “promote growth in the industry and help in alleviating our economy by giving it the much-needed bite in terms of prosperity and development”.
The rules are the Midstream and Downstream Petroleum Operations Regulations; Natural Gas Pipeline Tariffs Regulations; Gas Pricing and Domestic Demand Regulations; Assignment or Transfer of Licence and Permit Regulations; Petroleum (Transportation and Shipment) Regulations; and Petroleum Measurement Regulations.
Also speaking at the Authority Chief Executive, Engr. Farouk Ahmed noted that the regulations have been designed to enable businesses through regulatory clarity, certainty, fairness, transparency, and best industry practice.
He added: “In addition to the regulations being launched, 14 other regulations have been developed and shall be issued shortly”.
Speaking on the regulations, NMDPRA Secretary/Legal Adviser, Dr. Joseph Tolorunse said the Petroleum Measurement Regulations would standardize measurement system across the industry and help the country curb oil theft and losses.
“Meters must now be installed in all the measurement points across the sector which we have not had before. Now, there’s no way an operator now can actually operate without installing appropriate measurement system.
“And also if you install an appropriate measurement system, definitely it will stem the spate of crude losses through theft in the value chain, that is very, very important. It also specified that the method of measurement has to be approved. You don’t just come and say this is the method you want to use, because before the operators would want to a system that suits them but now it is no longer allowed”, he explained.
–Vanguard
KN
Tags: Engr. Farouk Ahmed Idare Ogan Joseph Tolorunse NMDPRA
