Under the Petroleum Act 1969, the Minister may award among others, an Oil Prospecting Licence (OPL) and an Oil Mining Lease (OML) for petroleum developments. The OPL is usually a precursor to the OML and is granted for the exploration/prospecting phases of petroleum development. Once petroleum is discovered in commercial quantities, the OPL may be converted to an OML which is used for the development and production phase. The PIAB introduces the Petroleum Licence (PL) which combines the exploration/prospecting phase with the development and production phases. What happens to existing OPL and OML holders? Continue reading “PIAB – What Happens to Existing OPLs and OMLs?”
Summary of the Petroleum Host and Impacted Communities Development Bill 2018
Introduction
The Petroleum Host and Impacted Communities Development Bill 2018 (the “Host Community Bill” or the “Bill”) is made up of six parts, twenty-seven sections on 15 pages. The Bill is formally titled “A Bill for: An Act to provide for Petroleum Host and Impacted Communities Development Trust, Incorporation of Petroleum Host and Impacted Communities Trusts and for other related matters.” Continue reading “Summary of the Petroleum Host and Impacted Communities Development Bill 2018”
PIAB – Assignment of licences
The issue of consent to the transfer or assignment of licence interests has always posed a challenge in Nigerian oil and gas transactions. The case of Moni Pulo Vs. Brass Exploration Ltd & 7 ors as well as the Department of Petroleum Resources’ Guidelines and Procedures for Obtaining Minister’s Consent to the Assignment of Interest in Oil and Gas Assets have not helped to clarify which transactions require ministerial consent. Continue reading “PIAB – Assignment of licences”
PIAB – Who issues Petroleum Licences?
Under the provisions of the Petroleum Act, the Minister of Petroleum Resources has the absolute discretion to award oil prospecting licences and oil mining leases. The PIAB in its section 8 provides for a process through which the Commission may award upstream licences. Continue reading “PIAB – Who issues Petroleum Licences?”