April 16, 2024

PIA: NMDPRA, stakeholders begin review of draft regulations on petroleum measurement, safety

Oredola Adeola

Stakeholders in the Petroleum Industry have started the second phase of the technical session to harmonise the draft Midstream and Downstream Petroleum (Safety) Regulations and Petroleum Measurement Regulations to further drive investment in the sector.

Malam Farouk Ahmed,  Authority Chief Executive (ACE), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) represented by Mr. Ogbugo Ukoha, Executive Director, Distribution Systems, Storage and Retailing Infrastructure, stated this at the ongoing stakeholder’s Consultation Forum on Regulations, which started on Monday, October, 4 and expected to end on October 6.

EnergyDay gathered that the second phase of the consultation forum will focus on two drafted regulations, the first one is on safety and which is very important to this industry, the second one is on the measurement of products whether crude or refined product, to pass from one hand to the other.

According to the ACE, there are so many operators in a value chain, we have the one that will bring the products, buy, store and transport the products.

He also noted that as they changed custody, there has to be measurement to guard against dispute, adding the authority was optimistic that there would be a positive outcome at the end of the stakeholders’ meeting.

The ongoing forum, it would be recalled is the follow-up to the midstream and downstream petroleum regulations consultative forum held on August 1, 2022, when ten major regulations were considered and reviewed to bequeath the industry with laws and policies to enable investment in the sector.

The ten regulations awaiting gazette after review are  Petroleum (Transportation and Shipment) Regulations; Assignment and Transfer of Licence and Permit Regulations; Midstream and Downstream Petroleum (Operations) Regulations; Petroleum Pipeline Regulations, Gas Pricing Domestic Demand and Delivery Regulations, and Natural Gas Pipeline Tariff Regulations.

Others were Midstream and Downstream Decommissioning and Abandonment Regulations; Environmental Regulations for Midstream and Downstream Operations, Midstream and Downstream Gas Infrastructure Fund Regulations, and Environmental Remediation Funds Regulations.

The ACE  said the Petroleum Industry Act (PIA) provided that before it could finalise a regulation, such regulation must be subjected to public scrutiny.

He said the PIA also required the authority to publish the regulations in the media for members of the public to have input on the draft regulation.

“We are required to publish this regulation when we finish drafting, whether by website, newspaper, or any other means and after 21 days that this has been published to the public, we are required to obtain feedback from the public.

“The feedback could be either by written or a forum where they can also come and let us know if we have gotten it right with what we have proposed in the regulation or make inputs.

“What we are doing today is a continuation of what we did a few months ago, it is in compliance with the PIA. A few months ago we sent out and published 10 drafted regulations, collaborated with stakeholders, and got feedback from them that time.