Nigeria Scraps DPR, PPPRA, Names New Oil Regulators, Mgt, Boards

According to a Platforms Africa report, the Department of Petroleum Resources (DPR) and the Petroleum Products Pricing Regulatory Agency (PPPRA), the two agencies in charge of regulations for Nigeria’s upstream and downstream oil sub-sector, will legally cease to exist in their current structures at any time.

President Muhammadu Buhari has already announced the formation of new agencies to take the place of the two.

Buhari has chosen the heads of the two regulatory agencies created following the adoption of the Petroleum Industry Act, according to a letter received exclusively by Platforms Africa to Senate President Ahmed Lawan.

The President signed the Act into law last month, creating the Nigerian Upstream Regulatory Commission (NURC), which will take over most of the upstream regulatory functions of the Department of Petroleum Resources, so replacing DPR as a primary regulator.

The PIA also calls for the establishment of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which will be in charge of overseeing the country’s midstream and downstream petroleum operations.

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.

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.

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.

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.