Regulation, Compliance & Economics

Regulation, Compliance and Economics Division is comprised of two subdivisions:

  • 1. Inspectorate

That deals with the retail (service stations) and depots inspections countrywide on a yearly basis to ensure that regulations and policies are adhered to. It is also to monitor whether safety and health standards are being followed. It is also done to identify those operating without retail licenses.

  • 2. Economics

It deals with the assessment of economic viability of projects within the directorate. It is also responsible for the unit rate slate (BFP) Basic Fuel Price calculation on a monthly basis. The Economics sub-division compile petroleum statistics, draft cabinet submissions, government notices and fuel price press releases.

Deals with the monitoring of compliance and adherence to the laws by the industry players. Ensure that license holders are adhering to the regulations and policies put in place. Ensures that contracts entered into with investors are well managed.

Difference between upstream and downstream:

The upstream sector includes the searching for potential underground or underwater crude oil and natural gas fields, drilling of exploratory wells, and subsequently drilling and operating the wells that recover and bring the crude oil and/or raw natural gas to the surface.

Downstream includes all work done at the refinery, distillation, cracking, reforming, blending storage, mixing and shipping. The case of heavy oil processing (oil sands etc.) and gas plant operation tend to cross the boundaries somewhat.