THE Federal Government has gazetted five regulations, while seven are currently in the process of being gazetted, as part of efforts targeted at implementation of Nigeria’s Petroleum Industry Act. PIA.
The gazetted regulations include the Conversion and Renewal (Licences and Lease) Regulation 2022; Domestic Gas Delivery Obligation Regulation 2022; Petroleum Royalty Regulation 2022; Petroleum Licensing Round Regulation 2022 and Nigeria Upstream Host Communities Development Regulation 2022.
Vanguard’s weekend investigation revealed that those already signed and currently undergoing the gazetting process include the Nigeria Upstream Petroleum Measurement Regulations 2023; Production Curtailment and Domestic Crude Oil Supply Obligation Regulations 2023; Frontier Basin Exploration Fund Administration Regulations 2023; Nigeria Upstream Decommissioning and Abandonment Regulations 2023; Significant Crude Oil and Gas Discovery Regulations 2023; Gas flaring, Venting and Methane Emission (Prevention of Waste and pollution) Regulations 2023 and Nigeria Upstream Petroleum Unitization Regulations 2023.
It indicated that others currently undergoing review by Federal Ministry of Justice include, the Upstream Environmental Remediation Fund Regulation 2023; Upstream Environmental Management Regulation 2023; Upstream Petroleum Safety Regulation 2023; Upstream Petroleum Fees and Rent Regulations 2023; Acreage Management Drilling and Production Regulation 2023 and Advance Cargo Declaration Regulation 2023.
It was learned that other regulations, which have been drafted and ready for stakeholders’ engagement include the Nigerian Upstream Petroleum Assignment of interest Regulation 2023; Nigerian Upstream Petroleum Compliance and Governance Regime Administration Regulation 2023; Nigerian Upstream Petroleum Commercial Operations Regulations 2023; Nigerian Upstream Petroleum Revocation of Licenses and Leases Regulation 2023 and Nigerian Upstream Petroleum Development Contract Administration Regulation 2023.
We have engaged stakeholders – Engr Komolafe
The chief executive officer of Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Engr. Gbenga Komolafe, who confirmed the developments in his response to Vanguard enquiry weekend, stated: “After due consultation with stakeholders, as enshrined in Section 216 of the PIA, the commission has issued five regulations to serve as key regulatory tools for the operationalisation of the PIA.
”Seven regulations have been signed and undergoing the gazzetting process. 11 regulations are undergoing stakeholders’ alignment, prior to issuance.
“The Governing Board of the commission has also been instituted with representatives as stipulated in the PIA.
”Similarly, the commission’s chief executive is recognised as the accounting officer and shall be responsible for the administration of the commission. The commission’s chief executive and six executive commissioners have commenced duties.
“Furthermore, the six Executive commissioners are responsible for the Exploration and Acreage Management; Development and Production; Health, Safety, Environment and Community; Economic Regulation and Strategic Planning; Corporate Services and Administration; and Finance and Accounts.
“The Governing Board of the Authority has been instituted with representatives as stipulated in the PIA.
”Similarly, the Authority Chief Executive is recognised as the accounting officer and shall be responsible for the administration of the authority. The authority chief executive and seven executive directors have commenced duties.”
Komolafe, who noted that the seven executive directors were responsible for the Hydrocarbon Processing Plants, Installations and Transportation Infrastructure; Distribution Systems, Storage and Retailing Infrastructure; Health, Safety, Environment and Community; Economic Regulations and Strategic Planning; Corporate Services and Administration; Finance and Accounts; and Midstream and Downstream Gas Infrastructure Fund, said: “Likewise, the governing board of NNPCL has been instituted and is operational.
”The Board of the NNPC Limited has been determined in accordance with the Companies and Allied Matters Act and its Articles of Association. The Board of NNPC Limited has been appointed by the president.
He said: “The Petroleum Industry Act 2021 is an omnibus legislation focused on the reformation of the oil and gas industry in Nigeria.
”The legislation is divided into five chapters with each chapter further divided into different parts and sections. The PIA has 319 sections and 8 Schedules. Every provision of the PIA is significant.”
Experts react
However, commenting on the implementation of the PIA, the executive director of Emmanuel Egbogah Foundation, Prof. Omowumi Iledare, said: “It is important to understand that the implementation of an Act is a continuous process. Regulations have also been fashioned, which shows the regulators are up and going.
“Additionally, NNPCL is enjoying its commercialization status with exploration activities prominently pursued in the Northern Basins and seeking equity participation in Exploration and Production downstream assets. The implementation of the Act is certainly ongoing.”
Similarly, the executive director, Spaces for Change, Victoria Ibezim-Ohaeri, who noted that there had been progress on the implementation, said it would impact the oil and gas industry and nation’s economy positively.
Source: https://www.vanguardngr.com/