- The regulations will aid the implementation of the Petroleum Industry Act.
- The draft regulation proposes establishing the framework for evaluating and approving Field Development Plans.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is considering seven regulations that would aid the implementation of some fragments of the Petroleum Industry Act. The regulations especially concern contracts, commercials, and revocation of oil and gas licenses.
The Chief Executive of NUPRC, Gbenga Komolafe, disclosed this during a stakeholders’ forum in Abuja. He said the seven regulations include Draft Upstream Commercial Operations Regulations, Draft Upstream Petroleum Code of Conduct & Compliance Regulations, Draft Upstream Petroleum Development Contract Administration Regulations, Draft Upstream Revocation of Licences and Lease Regulations, and Draft Petroleum Assignment of Interest Regulations.
This is in addition to the Draft Nigerian Upstream Petroleum (Administrative Harmonisation) Regulations and Draft Amendment to the Nigerian Upstream Petroleum Host Communities Development Regulations 2022. He disclosed that the Draft Assignment Regulations 2023 would elevate the provisions of the existing guidelines on divestment of interest to a regulation and, by so doing, improve the rules to reflect current realities.
The NUPRC chief said, “This phase in our regulations development is by no means a final or exhaustive one in our drive to support the upstream industry operators. The Commission will continue to embark on programmes and policies to create an enabling environment for growth and more investments in the Nigerian upstream oil and gas sector. Therefore, we look forward to more engagements with key stakeholders like your good selves.”
Komolafe, represented by the Executive Commissioner of Economic Regulation and Strategic Planning, NUPRC, Dr Kelechi Ofoegbu, said Draft Nigerian Upstream Petroleum (Administrative Harmonisation) Regulations 2023 would provide regulatory clarity on the implementation of the dual regulatory regime in the upstream occasioned by the preservation of licenses and leases granted under the Petroleum Act and not converted under the PIA.
The NUPRC boss said the draft regulation proposes establishing the framework for the procedure and process for evaluating and approving Field Development Plans. This also includes the framework for yearly work programmes and budget approvals.