The Presidential Steering Committee on the Petroleum Industrial Act (PIA) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) have released six draft regulations for the oil industry, eight months after President Muhammadu Buhari signed the Act.
Minister of state petroleum resources, Timipre Sylva, who is the chairman of the presidential committee, while presenting the regulations to stakeholders in Abuja argued that effective regulations are key to harnessing the gains of the PIA.
“This is why the Presidential Steering Committee on the PIA, which I chair as the minister of state petroleum resources, has played this pivotal role in collaborating with the commission in the drafting of the first set of regulations, which will be presented for review at this interactive forum,” the minister said.
Recall that the PIA signed on August 16, 2021, by President Buhari formed NUPRC and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Speaking further, Sylva said, “I am hopeful that the regulations, when fully implemented, will help in no small measure in the smooth take-off of the day-to-day operations of the NUPRC.”
The commission chief executive (CCE) of NUPRC, Gbenga, listed the draft regulations to include: Nigerian Upstream Fee and Rent Regulations, the Petroleum Licensing Round Regulations, the Domestic Gas Delivery Obligations Regulations, the Nigeria Conversion Regulations, the Nigeria Royalty Regulations, and the Nigeria Host Community (Commission) Regulations.
Komolafe however explained that discussions at the engagement are on issues dealing with royalty, licensing rounds, fees and rentals, with burning issues on implementation of host community fund, finalizing the 2020 bid round by issuing Petroleum Prospecting Licence (PPL).
He said, “We are very optimistic that this engagement will be fruitful, and all grey areas will receive adequate clarification with a view to giving meaning to the intent of the PIA and in a manner that the regulations become attractive to investors and user friendly in implementation.”
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