Article summary

  • The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued seven new regulations for the oil and gas industry.
  • The new regulations issued are in line with the provisions of the Petroleum Industry Act of 2021.
  • The regulations will ensure efficiency, effectiveness, and clarity of operations in the oil and gas industry.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has issued seven new regulations for operations in Nigeria’s oil and gas industry.

In a May 25 statement signed by the Commission Chief Executive, Engr. Gbenga Komolafe, the Commission made it clear that the seven new regulations are aimed at providing a regulatory environment that assures efficiency, predictability, clarity, and effectiveness.

The new regulations in addition to the previous five issued make up 12 regulations under the provisions of the Petroleum Industry Act (PIA), 2021.

The NUPRC says the new regulations were signed and issued on May 25 at the Commission’s headquarters by the Commission Chief Executive, Engr. Gbenga Komolafe, in a ceremony that was witnessed by the Executive Secretary of the Nigerian Extractive Industry Transparency Initiative (NEITI), Dr. Orji Ogonnaya Orji.

The seven new regulations are:

The Nigeria Upstream Petroleum Measurement Regulations, 2023

This will close the metering gap in upstream petroleum operations, encourage accelerated hydrocarbon measurement metering devices roll-out in upstream petroleum operations, encourage the development of independent and competitive meters used in the Upstream as well as attract private investment in the provision of metering services.

Production Curtailment and domestic crude oil supply obligation regulations, 2023

This will provide general rules for production curtailment and utilization of the produced petroleum in relation to export and domestic crude oil supply obligations, pursuant to sections 8(c) and 109 of the Act.

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

This would ensure the 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 a specified time in accordance with section 78 of the Act.

Gas flaring, venting, and methane emission (prevention of waste and pollution) regulations, 2023

It seeks to reduce the environmental and social impact associated with gas flaring and venting of natural gas and fugitive methane emissions into the atmosphere and preserve and protect the environment. It also seeks to prevent the waste of natural resources, enhance energy transition in Nigeria and create social and economic benefits from gas flaring and venting. The regulation sets out the procedure for the Commission to exercise its rights to take gas at flare point in accordance with the Act and all other applicable laws.

Nigeria upstream petroleum unitization regulations, 2023

It establishes rules, principles, and procedures for the implementation of unitization of oil and gas from a petroleum reservoir that extends beyond the boundaries of a license or lease area into an area to which another license or lease relates.

The five regulations earlier issued by the NUPRC in 2022 include:

  • Petroleum Licensing Round Regulations 2022
  • Petroleum Royalty Regulations 2022
  • Domestic Gas Delivery Obligations Regulations 2022
  • Conversion and Renewal (Licences and Lease)
  • Nigeria Upstream Petroleum Host Communities Development Regulations 2022.

According to the NUPRC, these regulations demonstrate the Commission’s commitment to providing a business-enabling environment in the Nigerian upstream oil and gas industry space. A part of the statement signed by Engr. Komolafe read:

  • “Our drive to promote clarity, trust, and predictability in the industry has remained unflinching as evident in the efforts deployed towards ensuring that regulations and key policies necessitated by the PIA are developed and gazetted expeditiously to enable alignment with the provisions of the PIA.”