See Thisday’s report on Shell MD, Mutiu Sunmonu’s comments on the Petroleum Industry Bill 2012.
The Extent of Ministerial Powers under the Petroleum Industry Bill 2012
Feature article
All I want is a warm bed and a kind word and unlimited power.
Ashleigh Brilliant
The phrases, “the Minister may”, “as may be decided or imposed by the Minister” “the Minister shall have the right” are phrases commonly sighted in the Petroleum Act 1969, the principal legislation currently governing the Nigerian petroleum industry as well as subsequent industry legislations. These Ministerial powers cover a multitude of issues ranging from power to grant upstream and downstream petroleum licences, prescribe terms and conditions of licences, control pricing of petroleum products, declare national emergency,[1] order discretionary suspension of petroleum operations and make regulations, to mention a few. These provisions have resulted in the vesting of a huge amount of power in a single office with almost unfettered powers to direct the affairs of this very sensitive industry. The product has been an industry with a record of abuse of power, lack of transparency and accountability and ineffective regulatory oversight, resulting in little or no benefit being derived by the citizenry. Continue reading “The Extent of Ministerial Powers under the Petroleum Industry Bill 2012”
PIB: The Government is not your Nanny
Toyin Akinosho of Africa Oil and Gas Report highlights critical differences between the current fiscal regime and the proposed fiscal regime under the Petroleum Industry Bill. He suggests that the proposed terms will be more onerous and will not encourage capital projects by small and large investors.
PIB Dead on Arrival?
Clara Nwachukwu of the Vanguard in the above titled article highlights some of the hidden tensions surrounding the passage of the PIB. In particular it suggests that the version of the Bill signed by the Minister includes significant changes from that submitted by the PIB Technical Committee.
Petroleum Mining Lease QRT
The QRTs below compare the critical terms of the PML under the Petroleum Industry Bill with the current OML regime.
Petroleum Prospecting Licences QRT
The QRTs below compare the critical terms of the PPL under the Petroleum Industry Bill with the current OPL regime.
Petroleum Exploration Licence QRT
The QRT below compares the PEL under the Petroleum Industry Bill with the current OEL regime.
Upstream Licences Quick Reference Tables (QRT)
The Petroleum Industry Bill proposes changes to upstream licence framework. To replace the Oil Exploration Licence (“OEL”), the Oil Prospecting Licence (“OPL”) & the Oil Mining Lease (“OML”), the Bill establishes the Petroleum Exploration Licence (“PEL”), the Petroleum Prospecting Licence (“PPL”) & the Petroleum Mining Lease (“PML”). The changes are not just in the nomenclature, the new regime includes a number of significant differences to the old structure. Our QRTs will show you those differences in an easily accessible format.
Tax provisions summary
Click here for the newly published summary of Part VIII of the PIB, which deals with taxation provisions in the upstream petroleum industry.
NNPC reforms under the Petroleum Industry Bill 2012: Plus ça change, plus c’est la même chose*
Feature article (warning – long post)
*the more things change, the more things remain the same
One of the primary objectives of Nigeria’s oil and gas industry reform has been to create a more efficient state-owned oil company (“SOC”). Government officials have often named the SOCs of Brazil – Petrobras, Norway – Statoil and Malaysia – Petronas, amongst others, as comparator companies on which the restructured national oil company would be modelled. The various drafts of the Petroleum Industry Bill (“PIB”) have proposed different reform alternatives culminating in the structural reform proposed in the Petroleum Industry Bill 2012 (the “Bill”). This article seeks to review the reform structure proposed under the Bill and to critically analyse the choices made. As our title suggests, it is our view that although several changes have been made, the fundamental issues surrounding the inefficiency of the Nigerian National Petroleum Corporation (“NNPC”) remain untouched and will continue to plague the industry in the immediate future if these reforms are passed into law. Continue reading “NNPC reforms under the Petroleum Industry Bill 2012: Plus ça change, plus c’est la même chose*”