Upstream Operations: NUPRC Unveils 7 Draft Regulations, Engages Stakeholders

In the bid to improve operational and regulatory efficiency in the nation’s upstream oil and gas industry, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has unveiled seven additional draft regulations.

The Commission is also currently engaging with stakeholders in the sector at the fourth phase of consultation with stakeholders in Abuja, to obtain their inputs prior to finalising the regulations.

Chief executive officer of the NUPRC, Gbenga Komolafe, said the stakeholders consultation was in line with Section 216 (1) of the Petroleum Industry Act (PIA) 2021, which requires the commission to consult with stakeholders prior to finalising regulations or amendments to regulations.

RELATED

Despite 50% Tariff Hike, Internet Usage Hits 1m TB In May

6 hours ago

Interim Dividend: Stocks Gain N377bn In 1 Week

6 hours ago

Komolafe, who was represented by executive commissioner, Economic Regulation and Planning, Dr Kelechi Ofoegbu, said that one of the objectives of the PIA is to foster a business environment conducive for petroleum operations and the best way to actualise this objective is by establishing a framework for the economic regulation of commercial operations in upstream oil and gas ventures.

This can be seen in NUPRC’s efforts to ensure that regulations and key policies necessitated by the PIA were developed and gazetted timely so that the industry operators can align their operations with the PIA provisions as quickly as possible.

He recalled that between June 2022 and July 2023, the Commission successfully produced 12 Regulations, which have been gazetted into law.

Komolafe also revealed that the five draft regulations which were presented for discussion during the 1st and 2nd phase of consultations with stakeholders have been concluded and presented to the Attorney General of the Federation and Minister of Justice for vetting, legislative standardisation, and approval.

“I am happy to inform you that these regulations have been finalised and ready for gazetting,” he said.

According to him, the draft regulations include; Draft Upstream Commercial Operations Regulations, which proposes to establish the framework on the procedure and process for evaluation and approval of Field Development Plans and annual work program and budget approvals; Draft Upstream Petroleum Code of Conduct & Compliance Regulations, which prescribes the framework for the regulatory administration of petroleum development contracts, joint development Agreements, Production sharing agreements. Service Agreements relating to upstream petroleum operations; Draft Upstream Petroleum Development Contract Regulations Administration, which proposes to set out the framework for implementing the Revocation Provisions of the Act and for dealing with post revocation issues in a systematic manner that ensures that the objectives of the revocation provisions set out in the law are achieved; and the Draft Upstream Revocation of Licences and Lease Regulations, which proposes to elevate the provisions of the existing guidelines on divestment of interest to a regulation and by so doing, improving the rules to reflect current realities.

Others are the Draft Petroleum Assignment of Interest Regulations; Draft Nigerian Upstream Petroleum (Administrative Harmonisation) Regulations and Draft Amendment to the Nigerian Upstream Petroleum Host Communities Development Regulations 2022.

Also speaking, the commission’s head, Compliance and Enforcement, Kingston Chikwendu, stated that this phase of public hearings on the making of regulations for the upstream comprises two segments. The first segment started yesterday and would run through Friday, October 13, 2023, while the second segment would start from November 8 to 10, 2023.