Governments passage of the 1969 national petroleum act,v which vests ownership of all petroleum resources of nigeria in the state. 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. Petroleum act, 1969 except for section 102 which provided that. Acts and regulations department of petroleum resources. 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. 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. Offshore petroleum exploitation and international law. 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. Environmental policies and strategies in nigeria oil and gas. 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.
Petroleum act 1969 and the petroleum amendment decree 1996. This act also instated a domestic obligation for international oil companies that required upstream producers to subsidize the. 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. To be a leading regulator in the oil and gas sector mission. 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. 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. 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. 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. Section 4 1 of the petroleum act provides that no person shall import, store, sell or distribute any petroleum products in nigeria without licence granted by the minister of petroleum. 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. The petroleum act of 1969 restricted oil licenses to nigerians.
This is compounded by the fact that there is no legislation that sufficiently provides for the regulation, production and utilisation of downstream gas. News and information about nnpc, a public organization that manages the governments interests in the nigerian oil industry. 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. The major legislations guiding the petroleum industry in nigeria, particularly the oil exploration and production activities are. The petroleum act 1969 remains the primary law regulating oil and gas exploration activities in nigeria. Petroleum drilling and production regulations, 1969 with amendments in 1973, 1979, 199 5, 1996 and petroleum. Petroleum marketing practices act petroleum production and distribution antisabotage act cap. 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. Petroleum compressed natural gas regulations ln 1961994 125. 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. Paragraph 4 of the fourth schedule to the act deems those regulations to have been made under section 8 of the act. The act repeated the existing legislations relating to petroleum. An act to provide for the exploration of petroleum from the territorial waters and the continental.
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. Faculty of law, afe babalola university, ado ekiti, ekiti state, nigeria. In 1971 nigeria joined the organisation of petroleum exporting countries opec. Public regulation of the oil and gas industry in nigeria. However, in the petroleum act 1969, provisions were made for participatory interest of.
In 1969, nigeria passed the oil pipeline act which dictates that companies should fork out just. Official records from the budget office of the federal republic of nigeria shows that the petroleum industry accounted for about 29. Laws of the federation of nigeria petroleum act 1990. Pdf examination of some legislations referencing acquisition of.
Hence these regulations which have not been revoked are published here with. 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. Arrangement of regula nons part i preliminary and general regulation 1. Nigeria 1969 petroleum act natural resource governance. First schedule oil exploration licences, oil prospecting licences and oil mining leases oil exploration licences 1. Rights for oil exploration, prospection and mining in nigeria. The act under which these regulations were made was repealed by the petroleum act cap. The 1969 petroleum act provides the legal framework for the marketing of petroleum and its byproducts. Forestry act 1958, antiquities act 1958, territorial waters decree 1967, oil in navigable waters decree 1968, petroleum decree 1969.
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. 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. 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. Sadly enough, the impact of the enforcement authority is. The regulation of the petroleum industry in nigeria. An act to provide for the exploration of petroleum from territorial waters and the continental shelf of nigeria and to vest the. 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. 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. 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. An act to provide for the exploration of petroleum from the territorial waters and the continental shelf of. 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. 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. Petroleum drilling and production regulation 1969 with. Effects of oil and gas exploration and production activities on.
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. However, in the petroleum act 1969, provisions were made for participatory interest of nigerian. To ensure the sustainable development of nigerias oil and gas resources across the value chain for our stakeholders through effective regulation, while entrenching world. The following are the existing legislations and statutes applicable to the oil and gas industry in 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. The fall and rise of the nigerian petroleum industry. 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. 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. 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. This licence is issued subject to the provisions of the petroleum regulations, of which the holder admits cognisance. Public regulation of the oil and gas industry in nigeria ggu law. 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. This act also instated a domestic obligation for international oil companies that required upstream producers to subsidize the local refineries by selling. 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 sector through its petroleum inspectorate department.
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