TheCable

The Nigerian Upstream Petroleum Regulations Commission (NUPRC) says it is in the final stage of gazetting and setting up funds under upstream petroleum decommissioning and abandonment regulations.

Joseph Tolorunse, head, compliance and enforcement, NUPRC, made this known on Wednesday in Abuja during its second phase of consultation with stakeholders on draft regulations.

Decommissioning is the cessation of offshore oil and gas operations at an offshore platform and returning the seafloor to its pre-production state.

Tolorunse said the regulation would be gazetted in October, adding that NUPRC was working towards meeting the timelines provided by the Petroleum Industry Act (PIA) 2022.

“The fund under the upstream petroleum decommissioning and abandonment regulations is to be set up within 18 months of the effective date of the PIA which will be expired by February 2023,” he said.

“In the next one month the regulation will be gazetted, we are almost at the final stage of the regulation.”

He said the seven draft regulations considered by the stakeholders’ engagement include acreage management (drilling and production) regulations and upstream petroleum environmental regulations.

Others are the upstream petroleum environmental remediation fund regulations; upstream petroleum safety regulations; unitisation regulations; upstream petroleum decommissioning and abandonment regulations; and frontier exploration fund regulations.

Tolorunse noted that the regulations were divided into three syndicate sections which witnessed robust inputs and constructive criticism.

According to him, before finalising the regulations, as provided by the PIA, stakeholders’ engagement was required and that had been fulfilled.

“We are not taking it lightly, all the comments and inputs received, as well as resolution reached will be incorporated into the regulations,” he said. 

“We are still going to look into those regulations we were unable to have convergence and when necessary we will call the stakeholders to discuss reasons why they should be taken on board or not.

“In some instances, the regulations provided for penalty and how contributions would be made in the development of the industry generally. For example, the remediation fund regulations enable contributions by companies to be channelled towards remediating the environment.

“Definitely, it will enhance the image of the company and the country at large in the area where they operate.” 

He further commended the active participation of the host communities, adding that their useful contributions would be considered seriously and reflected in the regulations.