The two agencies in charge of regulations for Nigeria’s upstream and downstream oil sub-sectors, Department of Petroleum Resources (DPR) and Petroleum Products Pricing Regulatory Agency (PPPRA), will legally cease to exist in their present structures any moment from now, Platforms Africa can report authoritatively.
President Muhammadu Buhari has already officially announced the creation of new entities that will replace the two agencies.
Buhari through a letter, obtained exclusively by Platforms Africa, to the Senate President, Ahmed Lawan, has appointed the heads of the two regulatory agencies that were created following the implementation of the Petroleum Industry Act.
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The Act which was signed into law last month by the President saw the creation of a new Nigerian Upstream Regulatory Commission (NURC), that will assume most of the upstream regulatory functions of the Department of Petroluem Resources, thereby becoming a key regulator in place of DPR
The PIA also provides for the establishment of Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to oversee the regulation of the midstream and downstream petroleum operations in the country.
The Nigerian President has, in the letter to the Senate, nominated Mr. Gbenga Komolafe as the Chief Executive Officer of the Upstream Regulatory Commission. Komolafe is to serve for a period of five years. The position is also renewable once for another five years according to the Act.
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Also, as a fallout of the PIA implementation, the President has approved the appointment of Mr. Sarki Auwalu as the Chief Executive Officer for the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
If confirmed, Auwalu who is the current Director/Chief Executive Officer of the DPR, would serve as Chief Executive Officer of the Authority for five years. The position is also renewable once for another 5 years.
The PIA requires the confirmation of the Senate for the position of the Heads of the Authority and the Commission.
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Platforms Africa provides insight into the activities of thè NURC as “new DPR.”
The Nigerian Upstream Regulatory Commission (NURC) that would be headed by Komolafe will be involved in granting of new licences and the approval of assignments of licence interests.
The PIA also provides for the establishment of the Commission to oversee the regulation of upstream petroleum operations in the country.
Platforms Africa reports that the new head, Komolafe, will be supported by six Executive Commissioners to handle the day-to- day administration of the Commission.
The Commission will also take over the current functions of the Department for Petroleum Resources (DPR), with respect to the regulation of technical, operational, commercial and environmental activities associated with upstream petroleum operations.
An Insight in the Midstream, Downstream Authority
Like in the upstream, the regulation for midstream and downstream, Platforms Africa reports, will also take a fresh perspective.
For the Authority, the PIA provides that it would regulate the midstream and downstream petroleum operations in the country.
As Chief Executive, Auwalu will be supported by seven Executive Directors to handle the day-to-day administration of the Authority.
The Authority will, according to Platforms Africa, take over the current functions of the DPR, with respect to the regulation of technical and commercial activities in the downstream and midstream petroleum operations.
Furthermore, the Authority will be saddled with the responsibilities of providing pricing and tariff frameworks for natural gas in midstream and downstream gas operation.
It will also provide pricing Tarrif for petroleum products based on fair market basis, thus, absorbing the current responsibilities and functions of the Petroleum Products Pricing Regulatory Agency.
