How Buhari can strengthen DPR — Expert

By Oluwagbenga Bankole    

 

A partner in the Energy and Project Finance Group of ACAS-LAW, Barrister Sola Adepetun has stated how Department of Petroleum Resources (DPR) position as the industry’s regulator can be strengthened promptly by President Muhammadu Buhari.

DPR has the statutory responsibility of ensuring compliance with petroleum laws, regulations and guidelines in the Oil and Gas Industry. The discharge of these responsibilities involves monitoring of operations at drilling sites, producing wells, production platforms and flow stations, crude oil export terminals, refineries, storage depots, pump stations, retail outlets, any other locations where petroleum is either stored or sold, and all pipelines carrying crude oil, natural gas and petroleum products among others.

While speaking at the Centre for Petroleum Information (CPI) 15th Annual Petroleum Policy Roundtable held recently in Lagos with thetheme ‘Forging Ahead without the Petroleum Industry Bill (PIB): What Options?,’ Adepetun, said that the DPR can be strengthened promptly by giving the body additional powers similar to those vested in the Nigerian Electricity Regulatory Commission (NERC) by virtue of the Electric Power Sector Reform Act (EPSRA).

He further stated that the Petroleum Act should be amended to establish DPR’s independence from the Ministry of Petroleum Resources.

He also said that; “realistic key performance indicator KPIs and definitive milestones should be issued by the Government to the DPR. DPR’s performance in relation to the KPIs and milestones should be deliberately monitored by the Government. Periodic reports on DPR’s performance should be issued to the public.”

Not too long ago a report released by the Nigerian Natural Resource Charter (NNRC) car­peted the Department of Petroleum Resources for be­ing weak in regulatory and oversight function, a key mandate of the Act setting up the organization.

 NNRC, however, put the blame on the Ministry of Petroleum Resources, insisting that sector’s roles under the Ministry are either not explicitly known or are so fluid that the same function may cut across multiple agencies, giving rise to confusion and conflict of interests

The report equally faultedthe process for the award of contracts and licenses for oil and gas prospecting in Nigeria, noting that it is tainted by corruption and collusion.

NNRC further raises questions on the process which it disclosed is ruined with a high degree of uncertainty and political influence, a factor that has hampered the growth of the sector and the economy in general.