EXCLUSIVE; PIA: DPR, PPPRA, PEF Cease To Exist As New Board, Management Team Of Upstream Commission, Downstream Authority Takes Charge Today
The Chief Executive Officers of the Department of Petroleum Resources, the Petroleum Products Pricing Regulatory Agency, and the Petroleum Equalisation Fund will today hand over the affairs of these agencies to the two regulatory agencies that were created by the Petroleum Industry Act to regulate the oil and gas industry.
The passage of the Petroleum Industry Act by the National Assembly and its signing into law by President Muhammadu Buhari in August had led to the creation of the Nigerian Upstream Regulatory Commission; and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The move heralds the start of new regulatory reforms as encapsulated in the Petroleum Industry Act.
The Act also signals the transformation of the roles of the Department of Petroleum Resources, the Petroleum Products Pricing Regulatory Agency, and the Petroleum Equalisation Fund into that of the two newly created agencies.
As part of measures to implement the new oil and gas legislation, the Secretary to the Government of the Federation, Boss Mustapha, had issued letters of appointment to the management team of the Nigerian Upstream Regulatory Commission; and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
The appointment letters, issued by the Secretary to the Government of the Federation, Boss Mustapha, is coming barely a week after the Senate had approved their nomination by President Muhammadu Buhari.
Buhari had in his letter to the Senate asked the Senate to confirm for the Midstream and Downstream Petroleum Regulatory Authority Idaere Ogan (Chairman);
Farouk Ahmed (Chief Executive); Abiodun Adeniji (Executive Director, Finance and Accounts); and Ogbugo Ukoha (Executive Director, Distributions Systems, Storage and Retail Infrastructure).
For the Nigerian Upstream Regulatory Commission, those confirmed by the Senate are Isa Modibo (Chairman); Gbenga Komolafe (Chief Executive); Hassan Gambo (Executive Commissioner, Finance and Accounts); and Rose Ndong (Executive Commissioner, Exploration and Acreage Management).
Following the confirmation and the issuance of appointment letters, THE WHISTLER can authoritatively report that the Director/CEO of DPR Engr Sarki Auwalu, will today hand over to the CEO of Nigerian Upstream Regulatory Commission, Mr. Gbenga Komolafe.
Similarly, the Executive Secretary/Chief Executive of PPPRA Mr. Abdulkadir Saidu, and the Executive Secretary/Chief Executive of PEF, Ahmed Bobboi, will hand over to the Chief Executive of the Midstream and Downstream Petroleum Regulatory Authority, Farouk Ahmed.
With this new development, the DPR, PPPRA, and PEF will cease to exist as an entity.
Until his new appointment as CEO of the Midstream and Downstream Petroleum Regulatory Authority, Farouk was a former Executive Secretary of the PPPRA.
The PIA provides that the Authority would regulate the midstream and downstream petroleum operations in the country.
Farouk will be supported by seven Executive Directors to handle the day-to-day administration of the Authority.
The Authority will 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 operations.
It will also provide pricing Tariff for petroleum products based on a fair market basis, thus, absorbing the current responsibilities and functions of the Petroleum Products Pricing Regulatory Agency.
For Komolafe, he would, as the Chief Executive of the Nigerian Upstream Regulatory Commission, serve for a period of five years.
The position is also renewable once for another five years according to the Act.
The Commission will take over the current functions of the DPR, with respect to the regulation of technical, operational, commercial, and environmental activities associated with upstream petroleum operations.