Implementing Oil and Gas Industry HSE Programs in a Dual Regulatory Framework of the Nigerian Oil and Gas Industry

Abstract The Petroleum Industry Act 2021 (PIA 2021) introduced distinctions between upstream, midstream, and downstream petroleum operations that were not clear-cut under the former Petroleum Act regime. The Regulatory powers that were largely under the Department of Petroleum Resources (DPR) were split between the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to oversee the upstream petroleum industry and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to regulate the midstream and downstream sector. Nevertheless, to effectively regulate oil and gas operations/facilities across the entire industry, both regulators must prioritise the safety of operations/facilities by ensuring that all operational activities are carried out with risks As Low as Reasonably Practicable (ALARP). On that note, the defunct DPR being the sole regulator pre-PIA had previously launched and implemented some flagship HSE programs such as the Offshore Safety Permit (OSP), Safety and Emergency Training Centres (SETCs), Risk Based Inspection (RBI), Safety Case Regime, Annual Facility Inspection/Oil Spill Contingency Plan (OSCP), Annual Quality Assurance/Quality Control (QA/QC) Laboratory Accreditation, Minimum Industry Safety Training for Downstream Operations (MISTDO), and finally the Search, Rescue, and Surveillance (SeRAS) program. This paper aims to examine the delineation between streams to distil the scope of the two regulators and thereafter showcase how some of the flagship Health, Safety, and Environment (HSE) programs previously implemented under the defunct DPR should proceed to be implemented going forward in the industry. It was found that the requirements to register separate entities to participate in the various streams and the separation of streams via the natural custody transfer provide clear delineation for the regulators to function without overlaps. Lastly, collaboration between the regulators and stakeholder engagement for policy harmonization was also identified as key to achieving a safe and sustainable industry.