TheCable

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) says it has started consultations with stakeholders on new regulations in the oil and gas sector.

The two new regulations are the midstream and downstream petroleum safety regulation and the petroleum measurement regulation in line with the Petroleum Industry Act (PIA).

The development comes two months after the NMDPRA commenced reviews of some midstream and downstream petroleum regulations. 

Speaking at the event, Farouk Ahmed, chief executive officer, NMDPRA, said the meeting emphasised the importance of stakeholders’ feedback on the proposed new rules.

Ahmed, represented by Ogbugo Ukoha, executive director, distribution systems, storage and retailing infrastructure, NMDPRA, said proposals from stakeholders would shape the final document.

“As you know, the essence of these engagements is for us to receive your feedback and add value to the draft to make it richer,” he said. 

Under the proposed regulations, the NMDPRA said tampering with metering systems or its ancillary equipment without approval would now attract $2 million penalty per meter.

On the safety regulation, part of the new proposed rules seeks to ensure that operators “shall provide for its personnel sufficient and appropriate safety equipment and personal protective equipment of internationally approved standard”. 

It also intends to ensure such equipment is always maintained in good condition.

“They will also establish emergency medical procedures including an appropriately manned and well-equipped onsite clinic, standard first aid boxes and automated external defibrillators situated at strategic locations in the facility, and medical evacuation procedures,” NMDPRA proposed. 

“They are also to provide firefighting and first aid equipment at every facility or installation in accordance with best industry standards and ensure that all personnel including contractors undergo occupational fitness tests and minimum industry training in a manner specified by the Authority.” 

On its part, the petroleum measurement regulation seeks to, among others, ensure accurate measurement and allocation of petroleum, petroleum liquids, natural gas and their derivatives.

In addition, part of the new proposed penalties would see that employment/ engagement of non-accredited authority contractors for fabrication, construction, calibration, and testing carries a fine of $5,000 per facility.

Also, using an unapproved tank for storage hydrocarbon without approval per tank will attract a $5,000 fine while using an unapproved tank for storage or changing tank petroleum product without approval will attract N1 million.

“Non-compliance in ensuring Authority representatives witness outturn verification at the port of discharge per loaded vessel or shipment is $250,000 while tampering with metering systems or its ancillary equipment without approval per meter is $2,000,000,” it added.