In a significant legal victory for the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), a Federal High Court in Abuja has dismissed a suit brought by Exxon Mobil Producing Nigeria Unlimited. The court's decision, rendered by Justice Inyang Ekwo, reinforces NMDPRA's authority and regulatory role in the country's petroleum industry.
Exxon Mobil had challenged the NMDPRA's competence to regulate aspects of its operations, such as butane lifting, arguing that these operations fell under its Oil Mining Leases (OMLs) and were thus the exclusive purview of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). However, the court, following Exxon Mobil's application for discontinuance, upheld NMDPRA's regulatory power.
NMDPRA's counsel, Ama Atuwewe (SAN) and Dr. Emeka Akabogu, successfully argued that the suit should be dismissed, emphasizing the need for a settled precedent from the court.
This landmark ruling establishes NMDPRA's regulatory authority over midstream and downstream petroleum operations and its power to monitor activities within the oil and gas value chain undertaken by various stakeholders. It is seen as a significant step in Nigeria's efforts against oil theft and a testament to the regulatory framework set forth in the Petroleum Industry Act 2021.
This outcome holds great importance for the Nigerian petroleum industry, clarifying the scope of NMDPRA's regulatory mandate, and it reaffirms the authority of the regulatory body in safeguarding the nation's energy sector.
Stay tuned for in-depth analysis and industry reactions to this ruling.
