NMDPRA Seeks Collaboration with Indigenous Oil Producers for Development of Midstream, Downstream Sectors
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has indicated its plan to work closely with the Independent Petroleum Producers Group (IPPG) towards galvanising the growth of the nation’s midstream and downstream sector through a smooth implementation of the Petroleum Industry Act (PIA).
The Chief Executive Officer of NMDPRA, Mr. Farouk Ahmed, gave the hint when a delegation of IPPG led by its Chairman, Mr. Abdulrazaq Isa, paid him a visit in Abuja.
Ahmed said the Nigerian oil and gas industry was at a critical phase with the ongoing reforms, saying it was imperative for a deeper and progressive level of collaboration between the NMDPRA and IPPG for the growth of the industry.
“IPPG remains a critical industry stakeholder which the NMDPRA is ready to closely work with in addressing challenges impeding industry growth and the development,’’ he said.
Ahmed assured IPPG of the agency’s readiness to support their growth and development as critical stakeholders in the industry and also expressed willingness to work closely with the Group, especially as the Authority was in the process of issuing relevant industry regulations to support the implementation of the PIA.
In his presentation at the meeting with the NMDPRA boss, Isa pledged the group’s support towards the Authority’s mandate of realising the growth and development of the midstream and downstream sector of the Nigerian oil and gas industry.
His presentation focused on the evolving industry landscape, ongoing industry reforms, IPPG’s member participation in gas processing and refinery operations and the role indigenous exploration and production companies can play in this new era in guaranteeing the nation’s energy security.
“Nigeria cannot afford to be left behind in view of the global energy transition agenda. Natural Gas should be considered as a transition fuel with deliberate policies formulated to attract investment into the sector,” Isa said.
He also noted that it was important for Nigeria to rapidly increase its refining capacity through the right policies and the provision of adequate support to refiners by the government to ensure that the country meets its petroleum products’ demand in the short to medium term.
On the PIA enactment, the IPPG chairman said the Act would set a solid growth foundation for the entire industry, adding that it was imperative that effective regulations be formulated to derive the full benefits of the Act.
According to him, “Industry-wide consultation in the enactment of regulations is required to promote inclusivity and ensure robustness of regulations and IPPG looks forward to collaborating with the NMDPRA in this regard.”