The Petroleum Industry Act (PIA) 2021 re-organized the governance and regulatory framework in the petroleum industry in Nigeria by the creation of two statutory regulatory agencies - one for upstream operations and the other for midstream and downstream operations. The creation of the Nigerian Midstream and Downstream Petroleum Regulatory Authority ('NMDPRA' or 'the Authority') is particularly significant as it is seen as the foundational step to establishing a framework that would attract investment in, and encourage full optimization of the midstream and downstream sectors of the petroleum industry in Nigeria.  

There is now a single regulatory entity to regulate and monitor technical and commercial midstream and downstream petroleum operations in Nigeria including petroleum liquids operations, domestic natural gas operations and export natural gas operations. It was created from a subsummation of three erstwhile regulatory bodies: Department of Petroleum Resources (midstream and downstream divisions), Petroleum Equalization Fund (Management) Board (PEFMB), and Petroleum Products Pricing Regulatory Agency (PPPRA). Pursuant to its powers under the PIA 2021, the NMDPRA has begun to issue regulations to operators under its purview.

In this newsletter, our Energy and Commercial Services Desk has reviewed 12 Regulations issued by the NMDPRA and provided:  

1.) Overview of the Regulations

2.) Licenses and Permits required including:

- Application and Coverage

- Duration

- Qualification

- Offences and Penalties

For operators carrying out midstream and downstream operations, compliance with the Regulations issued by the NMDPRA is essential to maintain good corporate governance standards and avoid exposure to penalties and other disciplinary measures by the Regulator.

Kindly note that the information contained in this newsletter is for knowledge purposes only and does not constitute direct legal advice or opinion.

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