The Federal Government through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has signed seven new petroleum industry regulations into law.
This is in addition to the initial five regulations that were successfully gazetted into law between June and October 2022.
Speaking at the signing of the seven concluded regulations into law on Thursday in Abuja, the Commission’s Chief Executive, Engr. Gbenga Komolafe said the seven new regulations were part of the 13 draft regulations that were presented for discussion during the 1st, 2nd and 3rd phases of consultations with stakeholders between 2022 and 2023.
The regulations are the Nigeria Upstream Petroleum Measurement Regulations 2023, the Production Curtailment and Domestic Crude Oil Supply Obligation Regulations, 2023, Frontier Basins Exploration Fund Administration Regulations, 2023, Nigeria Upstream Decommissioning and Abandonment Regulations 2023.
Others are: Significant Crude Oil and Gas Discovery Regulations, 2023, the Gas Flaring, Venting and Methane Emission (Prevention of Waste and Pollution) Regulations, 2023 and Nigeria Upstream Petroleum Unitization Regulations.
He explained that the Nigeria Upstream Petroleum Measurement Regulations, 2023 will among other benefits, will close the metering gap in upstream petroleum operations and encourage accelerated Meter roll out in upstream petroleum operations.
For the Production Curtailment and Domestic Crude Oil Supply Obligation Regulations, 2023, he said this regulation will provide the general rules for production curtailment and utilization of the produced petroleum in relation to export and domestic crude oil supply obligation pursuant to sections 8(c) and 109 of the Act.
On the other hand, he said the Frontier Basins Exploration Fund Administration Regulations, will also provide the general rules for the exercise of the Commission’s responsibilities with respect to frontier basins in Nigeria pursuant to section 9 of the Act and the administration of the Frontier Exploration Fund.
“The aim is to encourage and attract investment to the frontier basins in Nigeria,” he said.
Similarly, he explained that Nigeria Upstream Decommissioning and Abandonment Regulations 2023 seeks to ensure that decommissioning and abandonment activities are conducted in accordance with good international petroleum industry practices.
“The regulations also set the framework for the establishment and administration of a decommissioning and abandonment fund,” he added.
Also, he explained that the Significant Crude Oil and Gas Discovery Regulations would ensure optimum exploitation of petroleum covered by Petroleum Prospecting Licenses, granted under the Act, by the retention of areas of significant crude oil discovery and significant gas discovery by a licensee for a specified time in accordance with section 78 of the Act.
He further added that the Gas Flaring, Venting and Methane Emission (Prevention of Waste and Pollution) Regulations, seek to reduce the environmental and social impact associated with gas flaring and venting of natural gas and fugitive methane emissions into the atmosphere.
Lastly, he said Nigeria Upstream Petroleum Unitization Regulations, establishes rules, principles, and procedures for the implementation of unitisation of oil and gas from a petroleum reservoir that extends beyond the boundaries of a licence or lease area into an area to which another licence or lease relates.
These seven regulations being signed today represent a significant milestone achievement for the Commission in its continued stride towards the attainment of the goals of the PIA and the reformation of the upstream petroleum sector,” he said.
He noted that all the regulations are revolutionary in nature and aimed at providing a regulatory environment that assures efficiency, predictability, clarity, and effectiveness to the industry in the discharge of the commission’s mandate.
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