The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it is working to ensure issuance of midstream and downstream petroleum regulations for industry’s growth.
The authority said that when the regulations were finally published, they would be required to be gazetted by the Ministry of Justice.
Mr Ogbugo Ukoha, the Executive Director, Distribution Systems, Storage and Retailing Infrastructure, NMDPRA, made this known on Thursday in Abuja at the end of its stakeholders’ consultation forum on regulations.
The forum which opened on August 1, was attended by stakeholders from Chevron, TotalEnergies and Major Oil Marketers Association of Nigeria to bequeath the industry with laws and policies to enable investment in the sector.
The 10 regulations considered by the stakeholders were; Gas Pricing, Domestic Demand and Delivery Regulations; Natural Gas Pipeline Tariff Regulations and Midstream and Downstream Decommissioning and Abandonment Regulations.
The regulations included Environmental Regulations For Midstream And Downstream Petroleum Operations In Nigeria; Midstream and Downstream Environmental Remediation Fund Regulations and Midstream and Downstream Gas Infrastructure Fund Regulations.
Others are Petroleum (Transportation And Shipment) Regulations; Assignment and Transfer of Licences and Permits Regulations; Petroleum Pipeline Regulations and Midstream and Downstream Petroleum Operations Regulations.
Ukoha said the first traditional requirement of the authority as a regulator was to engage with stakeholders to propose draft regulations to people, consult and review their feedback before issuing the regulations.
According to him, the Petroleum Industry Act (PIA 2021) captured this process and required that it has to publish the regulations and after 21 days invite the stakeholders to listen and make considerations.
“So, we released 10 draft regulations across board and two more draft regulations but the consultation we were just concluding was for the 10 regulations.
“We got rich and intensed feedback from stakeholders, what is left for us to do now is to go back and reflect on it and utilise the good part ultimately for the benefit of Nigerians and growth of the industry.
“The reviewed regulations will be forwarded to the ministry of justice after for gazetting,” he said.
Ukoha said the regulations which were published online firstly got hundreds of rich written responses from stakeholders while the three syndicates group established at the forum made considerations and challenges clarified.
The director explained that the authority was mindful of the timeline set by the PIA itself.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has bega n to review the midstream and downstream petroleum regulations to bequeath the industry with laws and policies to enable investment in the sector.
Chief Timipre Sylva, Minister of State for Petroleum Resources at the NMDPRA stakeholders’ consultation forum on regulations on Monday in Abuja said the regulations had been shared with stakeholders for review and input.
The News Agency of Nigeria reports that the 10 regulations to be considered are: Petroleum (Transportation and Shipment) Regulations and Assignment and Transfer of Licence and Permit Regulations.
The regulations include Midstream and Downstream Petroleum(Operations) Regulations; Petroleum Pipeline Regulations; Gas Pricing Domestic Demand and Delivery Regulations; and Natural Gas Pipeline Tariff Regulations.
Others are Midstream and Downstream Decommissioning and Abandonment Regulations; Environmental Regulations for Midstream and Downstream Operations; Midstream and Downstream Gas Infrastructure Fund Regulations and Environmental Remediation Funds Regulations.
“We are now at the point of engagement and interaction with a view to issuing regulations that would benefit all stakeholders,” the minister said.
The minister said that with creation of the Petroleum Industry Act of 2021, the authority was saddled with the responsibility of technically and commercially regulating both the mid- and down-stream operations in the sector.
He said the review was in fulfillment of the provisions of Sections 33 and 216 of the PIA 2021. This, he said mandated NMDPRA to consult with relevant stakeholders prior to finalising regulations concerning the processing, refining, transmission, distribution, supply, sale and storage of petroleum products, or any other matters deemed expedient.
“This administration understands the need to have an all-encompassing, well thought-out, and unambiguous regulatory instruments that are painstakingly developed to meet the present and future aspirations of the government.
“The regulations are required to attract much needed investments and create opportunities in the sector; hence the need for stakeholders participation and engagement in developing regulations, processes and procedures.
“Prior to this event, the authority has initiated and proposed ten different regulations which span operations, pricing and environmental management, in line with its statutory mandate.
“Whilst noting that the current state of our local energy landscape is dire and is in need of ingenious solutions, we have an opportunity to ameliorate the situation through these sets of regulatory instruments,” he said.
He said that the regulations would provide clarity and certainty for investors, promote and build investor confidence, increase and improve foreign and indigenous participation in these sectors, and optimise value for all stakeholders.
These, he said would cumulate into enablement of businesses, growth of the industry and creation of myriads of opportunities for Nigerians.
Mr Farouk Ahmed, Authority Chief Executive, NMDPRA in an address said this innovation, amongst others in the PIA, aligned with the vision and commitment of President Muhammadu Buhari and the minister of state.
Ahmed, while extending appreciation to the ninth National Assembly who ensured the passage of the PIA, said Section 216 of the PIA mandated the authority to ‘consult with stakeholders prior to finalising amendments to regulations.
However, he said it did not consider this an obligation or box-ticking exercise as continuous engagement with its stakeholders to enable their business was at the core of its regulatory philosophy.
“Accordingly, our priority will be to ensure these regulations are primary enablers of the Federal Government’s Decade of Gas initiative and will help catalyse investment and enhance the attractiveness of the domestic gas value chain,” the NMDPRA boss said.
In a remark, Chairman Senate Committee on Petroleum (Downstream), Sen. Sabo Mohammed, said the passage into law of the PIA was a watershed in the legislative history of the nation.
Mohammed, represented by its Vice Chairman, Sen. Philip Aduda, said it was expected that, as secondary legislation, the regulations would complement the PIA in unlocking the vast potential of the midstream and downstream sector.
The Independent Petroleum Marketers Association of Nigeria has appealed to the Federal Government to pay members in the Southeast N20 billion transportation claims.
Mr Chinedu Anyaso, IPMAN Chairman, Enugu Depot Community in charge of Anambra, Ebonyi and Enugu said this in an interview with the News Agency of Nigeria im Awka on Friday.
Anyaso said that non-payment of the money was affecting the businesses of members in the area adversely.
He called on the Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to process and pay verified claims of marketers to enable them to remain in business.
According to him, most of the markers have already defaulted in the loan arrangements with the banks while accumulating more claims in an effort to procure products.
“Marketers in the zone are suffering because of the huge transport claims that have not been attended to by NMDPRA for years now.
“We rely on depots outside the zone for products and it is the transport differential that makes us sell at regular prices but the Federal Government is not paying us.
“At the moment, my members in Southeast are being owed between N15 billion and N20 billion claims.
“We are calling on the Federal Government to pay us so that we can service our loans and remain in business,” he said.
Anyaso also called on the management of the new Nigerian National Petroleum Corporation Ltd. to evaluate its facilities in the Southeast.
He said this was with a view to revitalising the Emene Depot in Enugu and enhance distribution in the zone.
Some residents of Kaduna have expressed worry over recent increase in the price of Premium Motor Spirit (PMS), otherwise called petrol.
The residents urged the Federal Government to enforce compliance with approved pump price to check inflation and ameliorate the suffering of ordinary citizens.
They told the News Agency of Nigeria on Monday in Kaduna that the hike in pump price was worrisome as it might affect prices of goods and services.
NAN Correspondent, who visited some filling stations in Kaduna, reports that fuel is sold between N190 and N230 per litre.
Mr Nura Muhammad, a tricycle rider, said that transport fare had jacked up in Kaduna metropolis following hike in pump price.
He said the tricylists were now charging N70 per drop as against N50 before the fuel price hike.
“Passengers going to Kaduna State University now pay N150 against N100 before,” he said.
A commercial bus operator, Bashir Abubakar, said that most of the filling stations were depensing fuel above the N165 approved pump price.
He said they now charge N800 as against N700 for passengers traveling from Kaduna to Zaria.
Abubakar blamed the oil marketers for unilateral hike in prices, and urged government to monitor their operations and sanction erring stations.
Also, Haruna Salihu, a trader, who decried hike in transport fares, said that exorbitant charge by motorists would compound the economic hardship being experienced by the masses.
“I now pay N200 as against N100 for transportation from my home to the market, it caused heavy drain in my pockets,” he said.
Mr Raji Ibrahim, a civil servant, said he spent more on transportation following sudden surge in fares by motorists.
“I spent over N1,000 in a day on transportation and meal, and it is not enough to cater for my daily routine,” he said.
For her part, Aisha Mamman, a bean cake seller, said she resorted to trekking as she could not afford exorbitant transport fares.
She said the hikes in transport fares would affect prices of goods and services, and called for palliative measures to cushion its effects on the masses.
NAN reports that the Federal Government through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), on July 21, said the fixed pump price of PMS remains N165 per litre as stipulated in the petroleum product pricing template.
The development was sequel to directives by the Independent Petroleum Marketers Association of Nigeria (IPMAN) advising its members to adjust the pump price of PMS to a minimum of N180 per litre.
The marketers had said the move was necessitated by the increment in the ex-depot price of PMS by some private depots where they were buying the product from.
However, NMDPRA maintained that petrol was a regulated product and urged marketers to comply with the pricing template.
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has said that its role was not properly considered while enacting the Petroleum Industry Act (PIA), 2021.
This is contained in a communique issued at the end of a two-day retreat in Uyo.
In the communique signed by the Acting Chairman, Mr Umaru Abdullahi, RMFAC said there was need for a second look at the Act.
”The role of RMFAC to mobilize revenue into the federation account needed to be defined in the Act and the new dispensation.
”Urgent measures should be taken to address sections of the Act that are inconsistent with the constitution.
”The measures can come in the form of judicial interpretation or legislative actions,” it said.
It further stated that the operating surpluses from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) should be remitted into the Federation Account.
”Such operating surpluses should not go into the consolidated revenue account as currently provided in the PIA, 2021,” it said.
The commission urged governments at all levels to collaborate towards tackling insecurity in the country to make the nation attractive to investors.
It also said that the shareholding of the NNPC Ltd should be clearly defined to reflect the three tiers of governments.
”There should be a stringent operational policy regime to enable the nation to achieve and sustain the expected increase in revenue earnings under the PIA.
RMFAC commended the President Muhammadu Buhari-led governnment for enacting the Act after several years of procrastination.
The Association of Distributors and Transporters of Petroleum Products (ADITOP) has expressed dissatisfaction over unpaid bridging claims owed to members by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).Its President, Alhaji Lawal Muhammad-Zaki, made the disclosure at an awareness meeting with members on Tuesday in Kano.He said the unpaid bridging claims was the major challenge marketers were facing in the transportation of petroleum products to different parts of the country.Zaki , therefore urged the NMDPRA to hasten payment of all the outstanding claims to members for effective distribution of petroleum products in the country.The president further said that the association was facing the challenge of high cost of diesel and inadequate foreign exchange rate.“Diesel is very costly, we find it difficult to fuel our trucks to transport petroleum products to different parts of the country.“We buy spare parts for our vehicles with foreign exchange, which is also inadequate,” he saidAlso speaking, the ADITOP Consultant, Mr Maurice Ibe, stressed the importance of unity among members.He urged members to forward their claims to enable him processed them under one umbrellaHe said that the association was currently liaising with security agencies to ensure safety of drivers and their vehicles while discharging their duties.Ibe described ADITOP as a strategic player in the oil and gas industry in the country, without which, the country would shutdown.He urged the Central Bank of Nigeria to grant members concessional foreign exchange to boost transportation of petroleum products to all the nooks and crannies of the country.Ibe said: ” ADITOP and the Independent Petroleum Marketers Association of Nigeria are being owed about N500 billion, but the NMDPRA claimed to have paid only N74 billion, which is a drop in the bucket.“The amount is owed to individuals, but we are now taking about cooperation and unity.“We are asking them to come as a group and speak with one voice to demand for their payments.”NewsSourceCredit: NAN
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has advised Anambra Government to jettison the idea of a State Petroleum Committee.
The Commissioner for Petroleum in the state, Mr Anthony Ifeanya, said recently that he was waiting for Gov.
Chukwuma Soludo’s approval to set up the committee.
According to him, the committee will monitor compliance to petroleum products quality and pricing by filling stations in the state.
But Mr Chinedu Anyaso, the IPMAN Chairman for Enugu Depot Community in charge of Anambra, Ebonyi and Enugu state, told newsmen in Awka on Monday that marketers were opposed to the idea.
Anyaso said the committee would create confusion and duplication of functions.
He argued that the rules and standards in the sector were set and monitored by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
He said that NMDPRA was empowered by the Petroleum Industry Act (PIA) to approve, license, monitor, regulate activities in the sector and whoever had complaint should channel it to the authority.
He further said that marketers in the state had held several meetings with the commissioner but that the petroleum committee had never been discussed.
“IPMAN wants to advise that there is no need for the committee.
“Section 48(1) of PIA empowers NWDPRA to solely supervise activities of marketers and they have capacity to do their work.
“Such committees by state governments will only create confusion,” he said.
Anyaso said the government should rather collaborate with marketers to ease the challenge of procuring products and develop the industry.
He also underscored the need for the State Government to collaborate with other states to revitalise the Enugu Depot, which had been moribund for about 15 years.
He said that the problem of pricing of products was beyond state governments and that the increase could only be addressed by Federal Government and its agencies.
“For instance, how can Anambra Government enforce petrol at N165 per litre when we are buying N168 per litre at the depot, N2 for loading and about N12 for transportation.
“The landing cost is about N183 per litre.
We don’t need additional confusion,” Anyaso said.
He further said that the group, along with Petroleum Dealers, was still dialoguing with the commissioner to review the consolidated revenue payable to government.
As the scarcity of petrol continues to linger in Lagos, the Independent Petroleum Marketers Association of Nigeria (IPMAN), says the Pipelines and Product Marketing Company (PPMC) is yet to supply products to the Ejigbo depot.
Mr Akeem Balogun, Secretary, IPMAN, Lagos Satellite Depot, Ejigbo, made the disclosure in an interview with the News Agency of Nigeria on Friday in Lagos.
NAN reports that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had in a recent meeting with independent marketers from South West Zone directed them to revert to the approved N165 pump price for petrol.
However, Balogun said the decision to revert to the regulated price for petrol, also known as Premium Motor Spirit (PMS), depends on if and when marketers are able to buy products at the approved ex-depot price.
“We are still waiting for the PPMC to supply products to our depot so that we can buy at the controlled price and can also sell at N165 per litre at our retail outlets,” he said.
Investigations by NAN revealed on Friday that the private depot owners were still selling PMS to marketers at about N162 per litre instead of the approved N148.17.
NAN also observed that majority of the filling stations owned by independent marketers were selling petrol from between N180 to N195 per litre depending on the location.
Meanwhile, ahead of the Sallah celebration, commercial bus operators in Lagos on Friday hiked their fares on both intra and inter-state routes.
It was observed that a trip from Lagos to Ibadan was jacked from about N2,500 to N5,000 while from Lagos to Sagamu increased from N1,000 to N1,500.
On the intra-state route, the transporters increased fare from Iyana-Ipaja to Oshodi to N400 against the normal N300 while the bus fare from Iyana-Ipaja to Ikeja was increased from N200 to N400.
Similarly, commuters going from Berger to Ojuelegba were charged N500 instead of the usual N300 while Berger to CMS passengers had to pay N800 instead of N600.
Also, the bus fare from Ketu to Costain went up from N300 to N400.
Many commuters were seen stranded in their bus stops with others opted to trek because of the few available commercial buses on the road.
A motorist, Mr Julius Ugwu, told NAN that the current scarcity of PMS was causing untold pains to Nigerians.
“I have been on queue since morning and it is really frustrating. I am praying that they find a solution to this issue very soon,” he said.
Another motorist who simply have his name as David, appealed to the government and oil marketers to consider the plight of Nigerians.
He said the increment in the price of petrol had led to increase in the cost of transportation, foodstuffs and other services in recent weeks.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it has licensed about 88 Liquefied Petroleum Gas (LPG) plants and skids in Kaduna State.
Abdullahi Ibrahim, the team lead, LPG Plants NMDPRA, Kaduna office, said this on Tuesday during an interview with the News Agency of Nigeria .
Ibrahim said that there were 44 licensed LPG plants within the state and environs which the authority ensured all safety precautions were taken before licensing the facilities.
He added that there were 44 skids among which 27 had already been licensed while the remaining 17 were waiting for Approval To Install (ATI).
“Skid is any gas you see selling in the fuel station which are five tonnes; you can’t sell more than five tonnes in a fuel station.
“Skid is allowed only where there is a fuel station with enough space and distance. We check if the space will accommodate the intended purpose.
“From there, we guide and the skids will be installed, all safety requirements will be put in place then all necessary documents will be submitted to enable processing of licence,” Ibrahim said.
He said that there were no illegal LPG outlets in the state, while there were few dormant LPG plants which had stopped business due to unavailability of funds among other reasons.
According to Ibrahim, 12 companies are in the process of getting a Site Suitability Approval (SSA) while eight gas plants were given Approval to Construct (ATC).
“In order to apply for the ATC, an investor must follow a process by visiting Kaduna State authorities and get the requirements that would enable NMDPRA give them the ATC.
“Such requirements include police report from any police station around that vicinity, fire report from fire authority indicating the suitability of the place for the purpose.
“Then, go to the lands authorities where an approved building plan and permission will be granted with a titled document carrying LPG plant,” he said.
The team lead said that licensing of facility is done for a period of two years while a licence expires on Dec. 31 of the second year.
He said LPG plant owners are supposed to renew their licenses before the deadline and officials would visit the site for re-examination before renewal.
Ibrahim decried the low rate of LPG plants and skids in the state, adding that government should encourage people to invest in LPG so as to boost the economy.
By Paul Sinclair, Vice President of Energy and Director of Government Relations, Africa Oil Week (www.Africa-OilWeek.com) and Green Energy Summit Africa.The continent is making political and legislative progress towards a new dispensation where companies in the region can exploit and develop their own resources for the benefit of their people. The key to this is continued regional engagement.Africa is increasingly taking ownership of its own energy destiny in the private sector space. But, just as importantly, it is also developing the policies and regulatory tools that support economic self-determination.Nowhere is this more evident than in Nigeria, where the long-awaited passage of the Petroleum Industry Act (PIA) last year is poised to unlock the vast potential in the national and regional energy sector.The Act has legislated the creation of two regulatory agencies to oversee critical parts of the industry. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will be responsible for the technical and commercial regulation of petroleum operations in their respective sectors.The upstream comprises the exploration of resources, as well as the drilling and operation of crude oil and natural gas wells. Midstream generally refers to the transportation and storage of petroleum products by pipeline, barge, tanker, or truck, while downstream petroleum primarily deals with the refining and processing of oil and natural gas and the marketing and distribution of final products to customers.The establishment of these regulatory bodies will provide ample space for engagement with industry associations that represent the companies that help drive the industry forward. Prominent among them is the Petroleum Technology Association of Nigeria (PETAN) (https://www.PETAN.org/), an association of Nigerian oilfield technical services companies spanning both sides of the upstream, midstream, and downstream.This long-standing association brings together Nigerian oil and gas entrepreneurs specifically to exchange ideas with leading operators and legislators, and to help develop Nigeria's oil technology industry for the benefit of Nigerians.Under the leadership of the charming Nicolas Odinuwe, PETAN seeks to support and enhance the participation of indigenous companies in Nigeria's petroleum products sector.Across all quarters, there has been a long talk on the need to improve Africa's ability to profit, help the continent move from being a producer of primary commodities, and reverse the centuries-old pattern of developed nations exploiting Africa's resources. and then process them elsewhere for huge profitPETAN is at the forefront of helping Africa achieve this in the oil sector. He describes himself as "the pioneer of local content in Nigeria... championing the pursuit of more local participation in the Nigerian oil and gas industry."As an association that focuses on local content, PETAN also has a role to play in the regional context, ensuring that Nigerian companies are equipped to win international or regional tenders for the processing of primary products such as crude oil and natural gas.In the oil industry, there are already numerous situations where an owner of shallow water assets in Nigeria could hire a European company to service their wells, even though there is a local supplier who can do the job. same.The solution to overcome this imbalance lies in the permanent communication of the industry, to guarantee the standardization of local content so that it meets local needs, thus promoting the participation of the private sector in national production.The establishment of Nigeria's new regulators offers an excellent opportunity to foster this type of intra-industry partnership and to help build an African energy industry characterized by mutual benefit, rather than unequal power relations.A key forum for this type of engagement will be the upcoming African Oil Week (https://Africa-OilWeek.com/Home) in Cape Town, (AOW), the global platform to stimulate deals and transactions across Africa Upstream.The event brings together governments, national and international oil companies, independents, investors, the geological and geophysical community, and service providers.In this context, the African Union strategy for an African Continental Free Trade Agreement (https://bit.ly/2Sx8Cy3) seeks to create a single continental market for goods and services, with free movement of capital and investment.A better integrated African energy sector can be an important driver of this vision, with, for example, Nigerian companies partnering on Angolan energy projects and vice versa. In the long term, there is the possibility of establishing a semi-autonomous oil and gas industry that delivers products to internal and external markets on its own terms.Getting to this stage requires communication and ongoing strategic commitment. The foundations for this are being laid through progressive policies and regulations. To take its rightful place as an energy power, Africa must continue to engage and partner across national and regional borders.