‘Petroleum unitisation, pollution prevention’ — NUPRC unveils 7 regulations for oil, gas industry

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has signed seven key regulations to further ensure the implementation of the Petroleum Industry Act (PIA) 2021.

Speaking at an event in Abuja on Thursday, Gbenga Komolafe, chief executive officer (CEO), NUPRC, said the signing of the regulations was in fulfillment of the mandate of the commission.

Komolafe listed the new regulations as the Nigeria upstream petroleum measurement regulations, 2023; 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 the significant crude oil and gas discovery regulations, 2023; gas flaring, venting, and methane emission (prevention of waste and pollution) regulations, 2023; and the Nigeria upstream petroleum unitisation regulations, 2023.

He said five regulations had earlier been successfully gazetted into law between June and October 2022.

“Gazetting the 12 regulations demonstrates the commission’s commitment towards providing a business-enabling environment in the Nigerian upstream oil and gas industry space,” he said.

Komolafe added that the seven new regulations signed are part of the 13 draft regulations that were presented for discussion “during the first, second, and third phases of our consultations with stakeholders between 2022 and 2023”.

‘BENEFITS OF THE NEW REGULATIONS’

Specifically, Komolafe said the Nigeria upstream petroleum measurement regulations will close the metering gap in upstream petroleum operations, encourage accelerated hydrocarbon measurement metering devices roll-out in upstream petroleum operations; and encourage the development of independent and competitive meters used in the upstream.

“Production curtailment and domestic crude oil supply obligation regulations, 2023. This will provide general rules for production curtailment and utilisation of the produced petroleum in relation to export and domestic crude oil supply obligations, pursuant to sections 8(c) and 109 of the act,” he said.

“Frontier basins exploration fund administration regulations, 2023. This 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.

“Nigeria upstream decommissioning and abandonment regulations 2023. It 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.

“Significant crude oil and gas discovery regulations, 2023, 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 specified time in accordance with section 78 of the act.”

Komolafe also said 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, preserve and protect the environment”.

He said the Nigeria upstream petroleum unitisation regulations establish the “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”.

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