By Abubakar Yunusa
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has threatened to sanction individuals and firms operating within the midstream and downstream sector without the appropriate licence, permit, or authorisation.
In a notice dated May 12 and signed by Abiodun Adeniji, the acting authority chief executive, the agency said the PIA was enacted to establish “clear, distinct and comprehensive” regulatory institutions for Nigeria’s petroleum industry.
The NMDPRA said Sections 29, 31, 32, and 33 of the Act designate the authority as the statutory regulator responsible for the technical, commercial, operational, and licensing oversight of all midstream and downstream petroleum operations in Nigeria.
The authority said its regulatory mandate covers all midstream and downstream petroleum activities across the federation, including the continental shelf, territorial waters, exclusive economic zone, free zones, export processing zones, industrial zones, and other designated areas.
The regulator said activities such as refining, processing, storage, bulk transportation, pipelines, gas transportation networks, terminals, jetties, wholesale supply, importation, exportation, distribution, and sale of natural gas and petroleum liquids fall under its oversight.
The NMDPRA also clarified that operations within free zones and export processing zones are not exempt from compliance with the PIA and regulations made under it.
“No person shall establish, construct, operate or undertake any midstream or downstream petroleum activity except with an appropriate licence, permit or authorisation granted by the Authority in accordance with the PIA,” the notice reads.
“Pursuant to section 48(1) of the PIA, any government ministry, department or agency exercising any power or function or taking any action, which may have direct impact on midstream or downstream petroleum operations shall consult with the Authority prior to issuing any regulation, guideline, enforcement order or directive, exercising any such power or function or taking any such action.”
The NMDPRA said it would review recommendations from any government ministry, department or agency and communicate its decision accordingly, which must then be complied with by the relevant institution.
“By virtue of Section 309 of the PIA, where the provisions of any other enactment are inconsistent with the PIA, the provisions of the PIA shall prevail,” the authority added.
“In view of the foregoing, any person engaging in midstream and downstream petroleum operations without an appropriate licence, permit or authorisation from the Authority shall be subject to sanctions in accordance with the relevant provisions of the PIA.”
The regulator directed all industry participants to ensure immediate compliance with the provisions of the PIA and rules made under it.
The notice was addressed to the managing directors and chief executive officers (CEOs) of oil and gas midstream companies, oil and gas downstream companies, petrochemical and fertiliser companies, as well as oil and gas import and export terminal operators.
