New Updates
Public Hearing on the Petroleum Industry Reforms about to commence
We will be live blogging important points from the session at the House of Representatives today.
PIAB – What Happens to Existing OPLs and OMLs?
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?”
New – PIAB proposes new upstream licensing system
The Petroleum Industry Administration Bill recently published by the National Assembly proposes a new upstream petroleum licensing system. Under the Petroleum Act, the Petroleum Minister may award three types of licences – the Oil Exploration Licence (OEL), the Oil Prospecting Licence (OPL) and the Oil Mining Lease (OML). The PIAB has reduced these to two – the Exploration Licence (EL), which is similar to the current OEL and the Petroleum Licence (PL), which is a combination of the OPL & the OML. Continue reading “New – PIAB proposes new upstream licensing system”
National Assembly releases copies of the Petroleum Industry Bills
The National Assembly today (30th of April, 2018) published the Petroleum Industry Administration Bill, the Petroleum Industry Fiscal Bill and the Petroleum Host and Impacted Communities Development Bill.
The bills are slated for public hearing at the House of Representatives on the 15th – 17th of May 2018 and in the Senate on the 22nd – 24th of May 2018.
We shall provide highlights of the provisions of the bills shortly.
POSTPONEMENT OF PUBLIC HEARINGS ON THREE PETROLEUM INDUSTRY REFORM BILLS
The House of Representatives today announced that the public hearings scheduled to take place on the 23rd – 26th of April, 2018 on the Petroleum Industry Fiscal Bill, the Petroleum Host Community Bill and the Petroleum Industry Administration Bill have been postponed to hold between Tuesday, 15 – 17 May, 2018, to allow for greater inclusiveness and stakeholders’ participation in view of the strategic nature of the Bills. Relevant stakeholders are encouraged to submit their memoranda on or before Friday, 11th May 2018.
Copy of Harmonised Petroleum Industry Governance Bill 2018
A copy of the Petroleum Industry Governance Bill 2018, which harmonises the different versions may be found here. Our review of the Bill does not show significant changes from the Bill passed by the Senate in 2017. A more detailed analysis of the Bill will follow.