NMDPRA plans decommissioning guidelines to ensure safety in midstream, downstream sector

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) will set the general rules to guide decommissioning and abandonment for midstream and downstream petroleum operations.

Farouk Ahmed, chief executive officer (CEO) of NMDPRA, spoke on Tuesday in Abuja during the authority’s stakeholders’ consultation forum on the proposed Midstream and Downstream Petroleum Safety and Environmental Regulations 2025.

The forum was convened by NMDPRA in line with Section 216 of the Petroleum Industry Act (PIA 2021), which mandates consultation with stakeholders before finalising regulations under the Act.

Ahmed, represented by Ogbugo Ukoha, NMDPRA’s executive director of distribution systems, storage and retailing infrastructure, said the authority would also set requirements for the administration of the fund.

“The proposed regulations will streamline activities concerning health, safety and environmental operations, including decommissioning and abandonment in the midstream and downstream petroleum industry,” he said.

Ahmed said Section 33 of the PIA empowers the authority to make regulations for all activities relating to midstream and downstream petroleum operations in Nigeria.

The NMDPRA CEO reiterated the authority’s commitment to the full implementation of the PIA in building a vibrant midstream and downstream petroleum sector.

“Accordingly, the proposed 2025 Midstream and Downstream Petroleum Safety and Environmental Regulations consolidated three of the authority’s earlier published regulations into a single document,” he said.

“Three of the regulations that were consolidated are Borders of Safety Regulations, Abandonment and Decommissioning Regulations and Environmental Regulations.

“The consolidation process has enabled the NMPDRA to reduce the complexities of navigating and implementing its numerous regulations.”

Ahmed added that the consolidation is aimed at eliminating “inconsistencies and repetitions across multiple regulations, and engendering further compliance with the PIA and regulations made thereto”.

He said the regulations would be read alongside other regulations issued by the authority, including the Midstream and Downstream Petroleum Fees Regulations 2024, which prescribe fees for petroleum activities.

Ahmed thanked stakeholders for their contributions and participation, adding that their feedback would be incorporated into the regulations.

In his overview, Joseph Tolorunse, NMDPRA’s secretary and legal adviser, highlighted the objectives and compliance measures of the regulations.

Tolorunse said the regulations provide safety and environmental standards to be observed during petroleum operations.

He said they also regulate safety and occupational health practices in Nigeria’s midstream and downstream petroleum operations.

Tolorunse added that the regulations were designed to ensure rehabilitation or management of negative environmental impacts from petroleum operations, while outlining the responsibilities of licensees and permit holders.

The secretary said the draft regulations, comprising 15 parts and 121 provisions, cover all activities concerning health, safety, and environmental operations, including decommissioning and abandonment.

“In line with Section 216 of the PIA, the authority has convened this forum to enable comprehensive discussions and engagement with its stakeholders aimed at producing a detailed and effective regulatory document,” Tolorunse said.

He recalled that the authority had issued three separate regulations in 2023 but decided to merge them into one.

Tolorunse said the new regulation is named the “Midstream and Downstream Safety and Environmental Regulations” to promote ease of doing business.