Timipre Sylva, minister of state for petroleum resources, says regulations in the midstream and downstream petroleum regulations will accelerate investments in the sector.
Sylva said this at the NMDPRA stakeholders’ consultation forum on regulations, held on Monday in Abuja.
He said the regulations, which have been shared with stakeholders for review and input, would boost local and foreign participation in the sector.
Sylva said the regulations under review include; the midstream and downstream petroleum (operations) regulations; petroleum pipeline regulations; gas pricing domestic demand and delivery regulations; natural gas pipeline tariff regulations; midstream and downstream decommissioning and abandonment regulations; among others.
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“We are now at the point of engagement and interaction with a view to issuing regulations that would benefit all stakeholders,” he said.
Sylva said with the creation of the Petroleum Industry Act (PIA) of 2021, the authority was saddled with the responsibility of technically and commercially regulating both the midstream and downstream operations in the sector.
He said the review was in line with the provisions of sections 33 and 216 of the PIA.
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According to him, this mandated NMDPRA to consult with relevant stakeholders prior to finalising regulations concerning the processing, refining, transmission, distribution, supply, sale and storage of petroleum products, or any other matters deemed expedient.
“This administration understands the need to have an all-encompassing, well thought-out, and unambiguous regulatory instrument that is painstakingly developed to meet the present and future aspirations of the government,” he added.
“The regulations are required to attract much-needed investments and create opportunities in the sector; hence the need for stakeholders’ participation and engagement in developing regulations, processes and procedures.
“Prior to this event, the authority has initiated and proposed 10 different regulations which span operations, pricing and environmental management, in line with its statutory mandate.
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“Whilst noting that the current state of our local energy landscape is dire and is in need of ingenious solutions, we have an opportunity to ameliorate the situation through these sets of regulatory instruments.”
The minister added that the regulations would promote and build investors’ confidence, improve foreign and indigenous participation in these sectors, and optimise value for all stakeholders.
NMDPRA had, in May, announced that it was drafting regulations on the midstream and downstream operations of the oil and gas sector to “boost local refining.”
The authority immediately appointed Ogbugo Ukoha, executive director, distribution systems, storage and retailing infrastructure (DSSRI), to chair the working team setup to review the draft regulations, engage and consult stakeholders for smooth implementation.
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