First schedule oil exploration licences, oil prospecting licences and oil mining leases oil exploration licences 1. Nigeria joined the organisation of petroleum exporting countries opec in 1971 and established the nigerian national petroleum company nnpc in 1977, a state owned and controlled company which is a major player in both the upstream and downstream sectors. An act to provide for the exploration of petroleum from the territorial waters and the continental shelf of nigeria and to vest the ownership of, and all onshore and offshore revenue from petroleum resources derivable therefrom in the federal government and for all other matter incidental thereto. Petroleum act 1969 petroleum drilling and production regulations 1969 oil pipelines act 1956 oil and gas pipelines regulations 1995 associated gas reinjection acts of 1979 and 1985 the nigerian lng fiscal incentives guarantees and. The bill, which still needs to be passed by the house of representatives and assented to by the president of the frn before it becomes law, seeks to establish a framework for the creation of commerciallyoriented and profit. Chapter 338 laws of the federation of nigeria 1990. An act to provide for the exploration of petroleum from the territorial waters and the continental shelf of. The act repeated the existing legislations relating to petroleum. Offshore petroleum exploitation and international law.
News and information about nnpc, a public organization that manages the governments interests in the nigerian oil industry. The petroleum act 1969 remains the primary law regulating oil and gas exploration activities in nigeria. An act to provide for the exploration of petroleum from the territorial waters and the continental. In 1971 nigeria joined the organisation of petroleum exporting countries opec. However, in the petroleum act 1969, provisions were made for participatory interest of. Explore, in relation to petroleum, means to make a preliminary search by surface geological and geophysical methods, including aerial surveys but excluding drilling below. The fall and rise of the nigerian petroleum industry. The regulations are made pursuant to section 8 i b iii of the petroleum act 1969 which empowers the minister of petroleum resources to make regulations for the prevention of pollution of wa ter courses and the atmosphere. The petroleum industry is thus the countrys lifeblood. Governments passage of the 1969 national petroleum act,v which vests ownership of all petroleum resources of nigeria in the state.
Arrangement of regula nons part i preliminary and general regulation 1. This is an act that provides for the exploration of petroleum from territorial waters and the continental shelf of nigeria and to vest the ownership. However, in the petroleum act 1969, provisions were made for participatory interest of nigerian. This act also instated a domestic obligation for international oil companies that required upstream producers to subsidize the. Laws of the federation of nigeria petroleum act 1990. Principles, guidelines and criteria volume 33 issue 1 ombolaji adewale. The following are the existing legislations and statutes applicable to the oil and gas industry in nigeria. Includes business units of exploration and production, gas development, refining, distribution, petrochemicals, engineering, and commercial investments. Petroleum marketing practices act petroleum production and distribution antisabotage act cap. Petroleum act 1969 and the petroleum amendment decree 1996. Petroleum compressed natural gas regulations ln 1961994 125. Forestry act 1958, antiquities act 1958, territorial waters decree 1967, oil in navigable waters decree 1968, petroleum decree 1969. The ngp acknowledges that nigerias extant petroleum law, the petroleum act of 1969 is designed primarily for crude oil, and does not address gas as a commodity in its own right. They also set out rights and powers of licensees and lessees under the act and require licensee or lessee shall adopt all practicable precautions, including the provision of uptodate equipment approved by the director of petroleum resources, to prevent the pollution of inland waters, rivers.
Official records from the budget office of the federal republic of nigeria shows that the petroleum industry accounted for about 29. An act to provide for the exploration of petroleum from the territorial waters and the continental shelf of nigeria and to vest the ownership of, and all onshore and offshore revenue from petroleum resources derivable therefrom in the federal government and for all other matters incidental thereto. Ministry of labour and productivity inspectorate division to enforce the factories act of 1990, while the labour, safety, health and welfare bill of 2012 empowers the national council for occupational safety and health of nigeria to administer the proceeding regulations on its behalf. Faculty of law, afe babalola university, ado ekiti, ekiti state, nigeria. An act to dissolve the nigerian national oil corporation and to establish the nigerian national petroleum corporation empowered to engage in all commercial activities relating to the petroleum industry and to enforce all regulatory measures relating to the general control of the petroleum. Apart from the loss of petroleum derived revenue to corruption and ineffective. Petroleum act an act to consolidate and amend the law relating to petroleum so as to make better provision for the exploration for, and the development and production of, petroleum, and for matters consequential or incidental thereto. The major legislations guiding the petroleum industry in nigeria, particularly the oil exploration and production activities are. The act under which these regulations were made was repealed by the petroleum act cap. The petroleum act and the petroleum drilling and production regulations and other regulations made there under laid down the foundation of the legal framework for the regulation of the oil industry in nigeria. Pdf examination of some legislations referencing acquisition of.
States and local government councils lg which comprise the second and third tiers of government were encouraged under decree 59 of 1992 to set up their own environmental protection agencies. In 1969, the government passed the national petroleum act,6 which vests ownership of all petroleum resources of nigeria in the state and stipulates a domestic obligation for international oil companies, requiring upstream producers to subsidize the local refineries by selling around 8 per cent of their crude oil production at a price of about. To be a leading regulator in the oil and gas sector mission. Petroleum act, 1969 except for section 102 which provided that. Nigerian oil industry, including the constitution of nigeria 1999, land use act,4 petroleum act,5 associated gas reinjection act,6 environmental impact assessment act eia,7 oil pipelines act,8 petroleum act,9 hydrocarbon oil refineries act,10 harmful waste special criminal provisions act11 and petroleum drilling and production regula. This licence is issued subject to the provisions of the petroleum regulations, of which the holder admits cognisance. Nnpc, chevron execute agreements over escravos gastoliquid project the nigerian national petroleum corporation nnpc and the chevron nigeria limited cnl have executed agreements over the multibillion dollars e. Petroleum drilling and production regulation 1969 with. An act to dissolve the nigerian national oil corporation and to establish the nigerian national petroleum corporation empowered to engage in all commercial activities relating to the petroleum industry and to enforce all regulatory measures relating to the general. Hence these regulations which have not been revoked are published here with.
Petroleum drilling and production regulation 1969 with amendments in 1973, 1979, 1995 and 1996. Petroleum profits tax act an act to impose a tax upon profits from the winning of petroleum in nigeria, to provide for the assessment and collection thereof and for purposes connected therewith. The entire ownership and control of petroleum resources including oil and gas in, under and on any land in nigeria, its territorial waters and its exclusive economic zone is vested in the federal government of nigeria fgn by virtue of the constitution, the petroleum act 1969 pa and the exclusive economic zone act eeza. To ensure the sustainable development of nigerias oil and gas resources across the value chain for our stakeholders through effective regulation, while entrenching world. Petroleum drilling and production regulations, 1969 with amendments in 1973, 1979, 199 5, 1996 and petroleum. An act to make provision for licences to be granted for the establishment and maintenance of pipelines incidental and supplementary to oilfields and oil mining and for purposes ancillary to such pipelines. The 1969 petroleum act provides the legal framework for the marketing of petroleum and its byproducts. This act also instated a domestic obligation for international oil companies that required upstream producers to subsidize the local refineries by selling. To ensure the sustainable development of nigerias oil and gas resources across the value chain for our stakeholders through effective regulation, while entrenching world class professionalism, accountability, and transparency.
Acts and regulations department of petroleum resources. In 1969, nigeria passed the oil pipeline act which dictates that companies should fork out just. Public regulation of the oil and gas industry in nigeria. The regulation of the petroleum industry in nigeria. A key part of the petroleum industry bill pib the petroleum industry governance bill pigb has been passed by the house of representatives hor on 15 january 2018. The petroleum drilling and production act 1979, made pursuant to the petroleum act, provides that the licensee or lessee of an oil mining licence oml shall, not later than five years. Nigeria 1969 petroleum act natural resource governance institute.
Construction and operation of a refinery shall be conducted under the direction of a manager appointed by a licensee. This is an act that provides for the exploration of petroleum from territorial waters and the continental shelf of nigeria and to vest the ownership of, and all onshore and offshore revenue from petroleum resources in the federal government. In this spirit, in 1969 the petroleum act was enacted which vested the entire ownership and control of all petroleum in, under or upon all land or nigerian territorial waters in the nigerian government. Effects of oil and gas exploration and production activities on. Environmental policies and strategies in nigeria oil and gas. Effects of oil and gas exploration and production activities. Advances in the development of petroleum resources has contributed enormously to the global energy demand and economic development over the past decades, however, it has left profound negative impacts on the natural environment and adverse human health effects in most oilproducing host communities around the world. Rights for oil exploration, prospection and mining in nigeria.
This is compounded by the fact that there is no legislation that sufficiently provides for the regulation, production and utilisation of downstream gas. Paragraph 4 of the fourth schedule to the act deems those regulations to have been made under section 8 of the act. An act to provide for the exploration of petroleum from territorial waters and the continental shelf of nigeria and to vest the. Coming seven months after its passage by the senate in may 2017, this is a landmark event aimed at the replacement of the obsolete petroleum act of 1969. Amidst mounting criticism of environmental impact assessments eias carried out in nigeria under the three independent eia systemsthe eia decree 86 1992, the town and country planning decree 88 1992 and the petroleum act 1969the paper traces the evolution of nigerias systems and appraises current practice and shortcomings. These regulations provide rules for the handling and storage of oil for purposes of refining. Sadly enough, the impact of the enforcement authority is. An act to impose a tax upon profits from the winning of petroleum in nigeria, to provide for the assessment and collection thereof and for purposes connected therewith. Public regulation of the oil and gas industry in nigeria ggu law. Evolution of environmental regulations in nigeria in response to the environmental problems, nigerias government has enacted the following regulations, which are aimed at mitigating impact of these problems.
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