Highlights of Aspects the Petroleum 
            Industry Bill
               Dr. Adeoye Adefulu
              Odujinrin &...
Outline

•   Background
•   NNPC Ltd.
    NNPC Ltd.
•   IJVs
•   Upstream Licensing
•   Environmental matters
    Environm...
Background

– Thrust of the reform is to:
   • Clearly separate the government functions in the oil 
     industry – polic...
NNPC Ltd.
                    NNPC Ltd.

• NNPC to be corporatised
  – All assets and liabilities of NNPC to be transferre...
IJV

• Should they be created by negotiation or 
     g
  legislation?
• No provisions as to transfer of assets & 
  liabi...
Licensing

• Sections 4 & 257 empowers minister to grant 
  licenses
  – PPL & PML
• May only be granted to indigenous oil...
Licensing (contd.)
             Licensing (contd.)

• Minister grants licenses on the 
  recommendation of NPD
• NPD to co...
Environmental Matters
        Environmental Matters

• Requirement to conduct environmental 
  p g
  programmes or environ...
Institutional Framework
        Institutional Framework

• Creation of NPD, NPI, NAPAMA amongst 
  others
• Regulatory fun...
Questions?

         Dr Adeoye Adefulu
adeoye.adefulu@odujinrinadefulu.com
             Odujinrin & Adefulu
    Barristers...
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Highlights Of Aspects Of The Petroleum Industry Bill A Presentation To The Nigerian Association Of Energy Economics Conference 2009

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This paper presented at the Nigerina Association of Energy Economics conference highlights the upstream aspects of the Petroleum Industry Bill

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Highlights Of Aspects Of The Petroleum Industry Bill A Presentation To The Nigerian Association Of Energy Economics Conference 2009

  1. 1. Highlights of Aspects the Petroleum  Industry Bill Dr. Adeoye Adefulu Odujinrin & Adefulu Barristers, Solicitors & Notaries Public Barristers  Solicitors & Notaries Public Lagos – Abuja – Port‐Harcourt
  2. 2. Outline • Background • NNPC Ltd. NNPC Ltd. • IJVs • Upstream Licensing • Environmental matters Environmental matters • Institutional Framework Odujinrin & Adefuluestd. 1972
  3. 3. Background – Thrust of the reform is to: • Clearly separate the government functions in the oil  industry – policy, regulatory and commercial • Create a stronger National Oil Company modeled after  Statoil, Petronas etc with more independence to invest  St t il P t t ith i d d t i t in local production as well as foreign markets Odujinrin & Adefuluestd. 1972
  4. 4. NNPC Ltd. NNPC Ltd. • NNPC to be corporatised – All assets and liabilities of NNPC to be transferred  (s.137) • Except PSC assets Except PSC assets – How will it be funded? • Certain moneys to be retained by the government Certain moneys to be retained by the government  under law‐ would it apply? Odujinrin & Adefuluestd. 1972
  5. 5. IJV • Should they be created by negotiation or  g legislation? • No provisions as to transfer of assets &  liabilities – Stamp duties issues – How will the assets be held? – Will transfer of OMLs require ministerial consent? q – Will JV companies be able to book assets Odujinrin & Adefuluestd. 1972
  6. 6. Licensing • Sections 4 & 257 empowers minister to grant  licenses – PPL & PML • May only be granted to indigenous oil May only be granted to indigenous oil  companies – Not less than 60% shareholding by Nigerians – Must be ratified by the Inspectorate or Directorate y p Odujinrin & Adefuluestd. 1972
  7. 7. Licensing (contd.) Licensing (contd.) • Minister grants licenses on the  recommendation of NPD • NPD to conduct licensing rounds –NNo more discretionary awards di ti d – No explicit link between power of the Minister to  award licences and NPD bid rounds Odujinrin & Adefuluestd. 1972
  8. 8. Environmental Matters Environmental Matters • Requirement to conduct environmental  p g programmes or environmental quality  q y management programmes – No distinction between the two No distinction between the two • This appears to be in addition to the EIA  requirements • EP/EQMP regime under Inspectorate while EIA EP/EQMP regime under Inspectorate while EIA  regime under Ministry of  Environment/NESREA Odujinrin & Adefuluestd. 1972
  9. 9. Institutional Framework Institutional Framework • Creation of NPD, NPI, NAPAMA amongst  others • Regulatory functions not fully separated –SSeveral references to functions to be carried out  l f t f ti t b i d t by NPD or NPI – Should a policy body hold acreage? • PSC  • Is there a need for NAPAMA Odujinrin & Adefuluestd. 1972
  10. 10. Questions? Dr Adeoye Adefulu adeoye.adefulu@odujinrinadefulu.com Odujinrin & Adefulu Barristers, Solicitors & Notaries Public Lagos – Abuja – Port‐Harcourt Odujinrin & Adefuluestd. 1972

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