Mohammed Shosanya
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC),has issued seven new regulations as part of efforts to ensure flawless measurement of petroleum production in the country.
The new regulations are designed to foster a more business-friendly environment in the nation’s upstream oil and gas industry,the Commission’s Chief Executive, Engr. Gbenga Komolafe said.
According to him,the new regulations represent a significant milestone achievement for the Commission in its continuous stride towards the attainment of the goals of the Petroleum Industry Act (PIA) and the reformation of the upstream petroleum sector.
He said:”Empowered by the PIA 2021, the Commission launched today seven concluded regulations out of the thirteen drafted regulations that were presented for discussion during phase 1st, 2nd and 3rd of consultation with stakeholders between 2022 and 2023 are:
“The Nigeria Upstream Petroleum Measurement Regulations, 2023; Production Curtailment and Domestic Crude Oil Supply Obligation Regulations, 2023; Frontier Basins 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.
“The other six (6) regulations yet to be approved and signed into law include: Upstream Petroleum Fees and Rents Regulations, Acreage Management (Drilling & Production) Regulations, Upstream Environmental Remediation Fund Regulations, Upstream Petroleum Safety Regulations, Upstream Petroleum Environmental Regulations and Advance Cargo Declaration Regulations”.
He stated that all signed regulations are revolutionary in nature which are aimed at providing a regulatory environment that assures efficiency, predictability, clarity, and effectiveness to the industry in the discharge of the commission’s mandate.
He added:”These regulations are significant in line with the recent happenings in the oil and gas industry. For example, the Nigeria Upstream Petroleum Measurement Regulations, 2023 heralds a new approach in the regulation of petroleum production accounting process for fiscalization purposes in the sector.
“It will ensure flawless measurement of petroleum production in an efficient, accurate, error free and standardized manner eliminating errors in production accounting and ensure enhanced revenues for the government and the holders of Petroleum Prospecting Licences and Petroleum Mining alike.
“Also, the Production Curtailment and Domestic Crude Oil Supply Obligation Regulations, 2023, which coincidentally is coming into effect at the time that the 650 barrels capacity Dangote Industries Refinery in Lagos is coming on stream would ensure the continues and adequate supply of crude oil feedstock to the nations rapidly expanding refining industry.
“The Frontier Basins Exploration Fund Administration Regulations, 2023, another entirely novel regulations in the sector, would bring into effect a structured regulatory regime in the conduct of exploratory activities and search for hydrocarbons in the nations frontier basins in a manner that is transparent and targeted at speedy de-risking of those areas for petroleum development and production.
“The Gas Flaring, Venting and Methane Emission (Prevention of Waste and Pollution) Regulations, 2023 codifies commercial ideas and practices currently being deployed by the Commission in the almost concluded phase one of the novel Flare Gas Commercialisation Program of the Federal Government as well as other provisions aimed at eliminating the flaring of gas and conforming with emission reporting requirements under international laws”.
