The signing by President Muhammadu Buhari of the Petroleum Industry Act into an Act of the Nigerian Parliament on 16 August 2021 was welcomed with mixed feelings among citizens of Nigeria as well as local and international investors and other global energy industry analysts and minders. Two years on, we take stock of the journey, examining the highs and lows, the promises fulfilled, and the challenges that lie ahead.
Conversely, the NMDPRA regulates midstream and downstream petroleum operations, covering storage facilities and export terminals for petroleum liquids, including crude oil export terminals.The confusion arises from the overlapping roles in regulating crude oil exports, necessitating approvals from both regulators. This dual approval process raises industry costs and introduces potential inconsistencies.
1. NMDPRA will exclusively regulate technical and commercial aspects of petroleum operations and facilities from the exit of crude export terminals to the entry gate of the natural gas processing plant.In accordance with the Act, the directive is subject to a review process by the Authority and the Commission and the outcome of the review process will guide compliance.
This move streamlines the permit application process, enhances transparency, and strengthens regulatory monitoring. It also aligns with the PIA’s objectives and complements the publication of new regulations for the midstream and downstream sector.F. NUPRC and financing the Frontier Basin Exploration Fund
The provision that the financial proposal will be the basis for appropriation requests to the National Assembly underscores the importance of legislative oversight in energy policy. It ensures transparent allocation of public funds for Frontier Basin development, ultimately driving economic growth and energy security.The NUPRC initiated the 2022/23 Mini Bid Round under the PIA to boost exploration in deep waters offshore Nigeria.