NMDPRA Rolls Out Decommissioning, Abandonment Regulation, Three Others

Emmanuel Addeh in Abuja

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) yesterday said it had introduced four additional regulations in line with the Petroleum Industry Act (PIA) 2021.

A statement signed by the authority’s General Manager, Corporate Communications and Stakeholders’ Management, Mr Kimchi Apollo, stated that the regulations aimed to address environmental and safety concerns in the midstream and downstream petroleum sector.

It listed one of the specific regulations as the Midstream and Downstream Petroleum Environmental Regulation, 2023, designed to ensure that environmental standards and practices are upheld across midstream and downstream petroleum operations.
Also approved were the Midstream and Downstream Petroleum Safety Regulation 2023, which prioritises safety measures and procedures in the midstream and downstream sector.

The NMDPRA said the Midstream and Downstream Decommissioning and Abandonment Regulation 2023, outlines the requirements and procedures for the decommissioning and abandonment of petroleum facilities in the midstream and downstream sector.

A major challenge in the Niger Delta, a recent THISDAY review had shown that many of the oil and gas assets sold to Nigerians mostly by the International Oil Companies (IOCs) were rarely decommissioned, a development that clearly breached existing laws regulating the industry.

Put succinctly, decommissioning is the cessation of operations at an oil and gas platform and returning the seafloor to its pre-production state for installations and any relevant structures that have come to the end of their productive life.

Offshore decommissioning involves capping oil wells, clean-up and taking out all production and pipeline risers that are sustained by the platform, taking out the platform and getting  rid of it in a junk storage area or manufacturing yard.

Also among the four listed regulations was the Midstream and Downstream Environmental Remediation Fund Regulation 2023, which the authority said,  sets out the establishment and financial contribution of the fund for midstream and downstream operations.

The fund, the NMDPRA said, aims to provide resources for the clean-up, rehabilitation or management of negative environmental impact from petroleum operations nationwide.

“These regulations will enhance value, create an enabling environment and deepen activities in the midstream and downstream sector for the benefit of Nigerians. Therefore, market operators are hereby advised to adhere strictly to these regulations,” the statement said.

Since the signing into law of the PIA, the industry regulator has been establishing regulations to guide the operations of the companies in the downstream and midstream.