NMDPRA unifies regulations to address complexities, inconsistencies in petroleum sector

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Tuesday initiated a regulatory harmonisation process to address inconsistencies and complexities in the sector’s operational guidelines.

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This move, according to the agency, aims to reduce complexities, eliminate inconsistencies, and enhance compliance with the Petroleum Industry Act (PIA).

Speaking during the stakeholders consultation forum in Abuja on Tuesday, the authority’s Chief Executive, Farouk Ahmed, said the proposed 2025 Midstream and Downstream Petroleum Safety and Environmental Regulations (Safety and Environmental Regulations) consolidates three of the agency’s earlier published regulations into a single document.

He added that the regulations will work in conjunction with other existing regulations, including the Midstream and Downstream Petroleum Fees Regulations 2024.

Mr Ahmed, represented by the Executive Director of Distribution Systems, Storage and Retailing Infrastructure at the NMDPRA, Ogbugo Ukoha, said Section 33 of the PIA provides for the effect that the Authority may make regulations for all activities relating to midstream and downstream petroleum operations in Nigeria.

“The consolidation process has enabled the Authority to reduce the complexities of navigating and implementing the Authority’s numerous regulations, streamline all activities concerning health, safety, and environmental operations, including decommissioning and abandonment in the midstream and downstream petroleum industry.

“Eliminate inconsistencies and repetitions across multiple regulations and engender further compliance with the PIA and regulations made thereto.

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“These regulations are to be read in conjunction with other regulations made by the Authority including the Midstream and Downstream Petroleum Fees Regulations, 2024 which provide for the prescribed fees for midstream and downstream petroleum activities,” Mr Ahmed said.

Also speaking, the NMDPRA, secretary/legal adviser, Joseph Tolorunse, said the Midstream and Downstream Petroleum Safety and Environmental Regulations (MDPSER) amended consolidated and repealed the Midstream and Downstream Petroleum Safety Regulations 2023, Midstream and Downstream Petroleum Environmental Regulations 2023 and Midstream and Downstream Petroleum Decommissioning and Abandonment Regulations 2023.

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Mr Tolorunse explained that the MDPSER provides the safety and environmental standards to be observed during midstream and downstream petroleum operations, regulate safety and occupational health practices in the Nigerian midstream and downstream petroleum operations and ensure rehabilitation or management of negative environmental impacts arising from midstream and downstream petroleum operations.

“Outline the duties of licensees and permit holders to whom these regulations apply, set out the general rules for the estabishment of a decommissioning and abandonment fund for midstream and downstream petroleum operations and provide requirements for administration of the fund.

“The reason why we decided to consolidate is mainly because we want to have one single regulation. So that it will be easy to refer to and will also be easy for doing business,” he said.