The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Presidential Steering Committee have invited international oil companies, and other stakeholders to the Phase (2) of the consultation forum on draft regulations under the Petroleum Industry Act (PIA), 2021, scheduled to begin on Monday 19 and end, Wednesday 21, September 2022.
This was confirmed in a statement signed by Engr. Signed Engr. Gbenga Komolafe, NUPRC Chief Executive, in a statement obtained by EnergyDay on Thursday.
Recall that the Consultation Forum with Stakeholders on Draft Regulations was in compliance with PIA, which was signed into law on August 16, 2021, by President Muhammadu Buhari.
EnergyDay gathered that a series of consultative forums with stakeholders are expected to be put together by the Commission in line with its focus on prioritising regulations to meet timelines in the PIA.
Phase 2 of the engagement forum is happening after almost five months after Phase 1 which got the inputs and considerations of oil and gas stakeholders.
That engagement focused on issues bothering on royalty, licensing rounds, fees, and rentals, burning issues on implementation of host community fund in line with Section 235 of the PIA, and finalising the 2020 bid round through issuance of PPL in line with Section 94 (2) of the PIA.
EnergyDay however gathered that Phase two(2) of the forum will focus on the upstream decommissioning and abandoned regulations; Upstream Petroleum environmental remediation fund regulations; and Acreage management (drilling and production)regulations.
Other issues that would be discussed during the consultations will also be focused on upstream petroleum safety regulations; Unitisations regulations; upstream petroleum environmental regulations and Nigeria frontier exploration fund regulations.
The draft regulations were prepared by the NUPRC in conjunction with the Presidential Steering Committee on the PIA.
The draft regulations, which are consistent with the provisions of the PIA, outline the objectives and application of the regulations, the general powers of the Commission, procedures for the establishment, management, and dissolution of the Host Community Development (HCD) Trust and HCD Trust Fund, including guidelines for investment of the Reserve Fund.
It was also focused on reporting obligations and other relevant miscellaneous provisions such as penalties and sanctions, the process for reporting acts of vandalism, grievance mechanism and conflict resolution procedures, and transfer of existing host community development schemes.
EnergyDay gathered that the other six (6) regulations discussed in Phase 1 of the consultative forum, have been finalised for publishing in the official gazette.
Adewale Ajayi, KPMG, Partner & Head Tax Energy & Natural Resources, said that the Nigerian Upstream Petroleum Host Communities Development Regulations, 2022, as well as other regulations, once gazetted and when fully implemented, will ensure the smooth operationalisation of the PIA.