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Fed Govt considering regulations to make petroleum products available

The Nigerian Midstream and Downstream Petroleum Regulation (NUPRC) yesterday embarked on a stakeholders' consultation to facilitate the availability of diverse petroleum products to consumers.

This was revealed in the presentation tagged: "An overview of the draft regulations by Authority Secretary & Legal Adviser, Dr. Joseph Tolorunse," at the Stakeholders' Consultation for Authority Phase V Regulations, held in Abuja.

The presenter said the objective of providing diverse petroleum products is to reduce transportation costs and promoting market -driven pricing.

It was one of the objectives in the Third-Party Access and Open Access Regulations, 2023.

He said: "The regulations are set to (c) facilitate the availability of diverse petroleum products to consumers by reducing transportation costs and promoting market -driven pricing."

The Authority Secretary also noted that one of the objectives is to foster competitive environment in the midstream and downstream petroleum sector by ensuring equitable and non-discriminatory access to facilities, infrastructure, and service for third parties.

He also noted that another objective is to optimise the utilization of existing petroleum infrastructure, minimise duplication of investments, and facilitate the efficient movement of petroleum products within the supply chain.

Presenting the Disposal of Confiscated Materials & Equipment Regulations 2023, he said the regulations provide common, simplified, and documented proceses procedures for the disposal of confiscated materials and equipment in the Nigerian midstream and downstream petroelum industry.

The regulations, said Tolorunse, are targeted at encouraging transparency and accountability in the use of financial resources generated from disposal of the properties.

The regulations apply to activities relating to or connected with the disposal of confiscated materials and equipment in the Nigerian midstream and downstream industry.

On the Separation of Licensed Activities and Surrender of License or Permit Regulations, Tolorunse, said the regulations set forth the procedure for the separation of licensed activities and process for the surrender of license and permit in the Nigerian midstream and downstream petroleum industry.

Besides, he said the regulation applies to license and permit holders undertaking midstream and downstream operations in Nigeria.

In his opening remarks, the NMDPRA Chief Executive Officer, Mr. Farouk Ahmed recalled following the Petroleum Industry Act 2021, the Authority has already gazetted 16 regulations.

The Executive Director, Distribution Systems, Storage & Retailing Infrastructure, Mr. Ogugo Ukoha, who represented him, said there are four regulations for which consultations have been held for that are yet to be gazetted.

He added that "here we are today to also deliberate on seven draft regulations."

He said the stakeholders’ consultation will hold for three days.

He explained that statues like the Petroleum Industry Act are primary legislations while the regulations which the authority enacts breathe life into the act.

Ahmed said the PIA requires the NMDPRA to regulate the midstream and downstream sector and in fulfillment of that the authority does its part of regulations.

He added that the "in the first instance we have drafted and gazetted 16 regulations followed by another set of four regulations that are awaiting gazetting and today, we kicking off another set of seven regulations for consideration.

"The PIA has provided and required us to also sit down and consult with stakeholders each time we want to draft or gazette regulations because as the feedback loop the responses we get from them further enriches that so we carry everybody along and the final outcome is the regulation."