ANNOUNCEMENT OF THE PETROLEUM INDUSTRY ACT
ANNOUNCEMENT OF THE PETROLEUM INDUSTRY ACT
President Muhammadu Buhari has signed into law the much-awaited Petroleum Industry Bill, now Petroleum Industry Act (“PIA”). Prior to PIA, there were different versions of the PIB. It started as an omnibus bill and was later divided into 4 separate bills before emerging in 2020 as a consolidated bill.
President Muhammadu Buhari has signed into law the much-awaited Petroleum Industry Bill, now Petroleum Industry Act (“PIA”). Prior to PIA, there were different versions of the PIB. It started as an omnibus bill and was later divided into 4 separate bills before emerging in 2020 as a consolidated bill.
The PIA seeks to stimulate long term investments required in the industry to address the revenue demands of the Government, cater for host communities, and provide an enabling and transparent environment for operators in the industry, as well as resolve other challenges facing the industry. Indeed, the Act which contains 5 Chapters, 319 Sections and 8 Schedules is a crucial development needed to harmonise and create a definitive law on several issues plaguing the petroleum industry.
Some of the key provisions in the PIA includes:
- Two Regulators for the oil and Gas industry, namely: the Nigerian Upstream Regulatory Commission (“the Commission”) for technical and commercial regulation of upstream petroleum operations, and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (“the Authority”) for technical and commercial regulation of the midstream and downstream petroleum regulations.
- The Commission to recommend lease and consent on assignment to the Minister, for approval within a specific period otherwise same will be deemed given.
- Incorporation of a commercial and profit focused NNPC Limited under CAMA within 6 months from commencement of the Act, with its shareholders as the Ministry of Finance Incorporated and Ministry of Petroleum Incorporated.