Nigerian Midstream and Downstream Petroleum Regulatory Authourity (NMDPRA), says it will partner Oil Trading and Logistics (OTL) Africa Downstream to ensure effective regulation and standards in the downstream oil and gas industry.
The Authourity Chief Executive, Farouk Ahmed, said this when the Advisory Board of OTL, led by Dr Mumuni Dagazau, paid him a visit yesterday in Abuja.
”We can collaborate on information sharing, from your source, from our source, but it has to be credible, it has to be very transparent, so that anybody who wants to invest in the industry or in the sector, can see the projections based on the factual numbers.
”The industry needs very strict corporate governance, that is what we are lacking. Every player thinks he is indispensable and that is why we are having some problems regarding distribution of petroleum products.
”Of course they have their own reasons. With due regards they are in the business to make money, they are also in the business to put regulations in place but when the consumer is being taken advantage of for whatever reason, it is not acceptable.
”So I agree with you that strong regulations and corporate governance is necessary in order to have confidence in the industry,” Ahmed said.
On the forthcoming OTL Africa Downstream annual event, Ahmed assured that the authourity would take advantage of it and ensure its presence.
Ahmed said: ”We are always ready to collaborate with stakeholders but we must be mindful of the fact that we are regulators.
”We will look at your propositions and add where we can latch in because we need to also support our own internal capacities like the OTL.”
Earlier, Dagazau, who represented the OTL board chairman, Mr Tunji Oyebanji, called for partnership between the OTL and the Authority, adding that their collaboration would benefit both parties.
He said: “OTL over the years, has a collosal amount of data through its relationships and associations both local and international.
“We want to capitalise on that in supporting NMDPRA. One of the things paramount in restructuring any organisation is access to Information and ability to get the right data to apply your thinking processes properly.
“What we are offering is an opportunity to leaverage in what we have to support what you have been doing and give value back to Nigeria and the international market.”
According to Dagazau, OTL will provide a network that can enable the authority disseminate information to a wide range of organisations in a faster way.
Meanwhile, Dr Emeka Akabogu, Founder, OTL Africa Downstream, said OTL had transited to a repository for industry information for the purpose of advancing business, operations and policy.
He said the Authority has strategic role within the context of the Nigerian midsteam and downstream industry and was positioned by virtue of the PIA to be exceptional.
”So we see that as an opportunity for OTL and the Authority because we are able to offer the Authority a unique interface with multi sectorial industry interests as opposed to dealing with individual operators in the range of sub sectors which make up the industry, because almost everybody is represented under the OTL umbrella.
”We will be very glad to work with the Authority to ensure that the right policy initiatives are put out regularly.
”We want to collaborate with the Authority to ensure competition is effectively regulated, ensuring that the right standards are in place and a whole range of areas which propel the industry are explored.
” We are looking essentially for a strategic collaboration on a long term basis to drive this relationship,” he explained.
According to Akabogu, OTL basically seeks to be a strategic partner in ensuring the right standards for the industry are in place from operational and policy perspectives.
”We also want you to partake directly and physically in the flagship event which we put together for the industry annually which is the OTL African Downstream Week.