Page 14 - DMEA Week 43 2020

DMEA POLICY DMEA

NMDPRA will be
responsible for ensuring
domestic gas supplies.

Nigeria’s PIB would fold PPPRA,

PEF into new agency

NIGERIA THE Nigerian government’s proposed oil and reported. To this end, the PIB states, the new
gas law, known as the Petroleum Industry Bill agency will “be setting cost benchmarks for
The Nigerian (PIB), looks set to fold two of the existing agen- midstream and downstream petroleum opera-
government’s proposed cies that regulate the downstream sector into a tions, [will] provide pricing tariffs framework for
oil and gas law, known new agency. natural gas and fair market value of the applica-
as the Petroleum The West African state’s downstream sec- ble petroleum products ... [and will advise] the
Industry Bill (PIB), tor is currently under the supervision of the government, its agencies and other stakeholders
looks set to fold two of Petroleum Products Pricing Regulatory Agency on the commercial market relating to tariff and
the existing agencies (PPPRA) and the Petroleum Equalisation Fund pricing frameworks.”
that regulate the (PEF). Additionally, the Department of Petro- Additionally, the bill says, NMDPRA will
downstream sector into leum Resources (DPR) has the authority to reg- “[grant], issue, modify, extend, renew, review,
a new agency. ulate activity in the upstream, midstream and cancel, reissue or terminate licences, permits and
downstream sectors of the oil and gas industry. authorisation for midstream and downstream
Under the PIB, though, a new agency known petroleum operations.”
as the Nigerian Midstream and Downstream The language of the bill is more or less in line
Petroleum Regulatory Authority (NMDPRA) with remarks made by Timipre Sylva, Nigeria’s
will monitor commercial, operational and tech- Minister of State for Petroleum Resources, in
nical operations in the downstream sector and early September. At that time, Sylva said that the
the midstream sector. “The Authority shall be federal government intended to merge PPPRA
responsible for the technical and commercial and PEF into a single regulatory agency. The cre-
regulation of the midstream and the down- ation of this new entity, he said, is designed to
stream petroleum operations in the petroleum streamline and optimise downstream and mid-
industry,” the bill states. stream operations in order to ensure efficient
The legislation “will also promote health safe, fuel deliveries to Nigerian consumers.
efficient and effective conduct of midstream The minister was speaking a few weeks before
and downstream petroleum operation in an Abuja submitted the PIB to both houses of the
environmentally acceptable and suitable man- National Assembly for consideration. Nigerian
ner,” according to the text of the PIB, as cited President Muhammadu Buhari has said he
by Nigerian News Agency (NAN). “Also, it will hopes to sign the law before the end of the year.
promote a competitive market for the midstream As of press time, it was not clear whether
and downstream petroleum operations and pro- the plan to incorporate PPPRA and PEF into
mote the supply and distribution of natural gas NMDPRA had garnered any responses from
and petroleum products in the midstream and employees of those agencies. When the previous
downstream,” it said. administration mooted a similar plan in 2018, it
One of NMDPRA’s main tasks will be to said it intended to transfer the two agencies’ staff
ensure domestic supplies of natural gas, NAN to the new agency. ™

P14 www. NEWSBASE .com Week 43 29•October•2020