Exactly 17 years after the commencement of the industry reforms, the petroleum industry governance bill 2017 the bill, was passed by the nigerian senate on the 26th of may, 2017, leaving high expectation for the corresponding passage by the lower house the house of representatives and setting the stage for the muchanticipated industry. Petroleum industry bill pib 2012, niger delta region of nigeria, oil and gas. The petroleum industry bill 2012 pib seeks to ensure that the management and allocation of petroleum resources in nigeria and their derivatives are conducted in accordance with the principles of good governance, transparency and sustainable development in nigeria. Pdf nigeria is a major oil and gas producing country. Read all the latest news, breaking stories, top headlines, opinion, pictures and videos about petroleum industry fiscal bill from nigeria and the world on today. Between 2005 and 2010 alone, the sector attracted more than usd 67 billion. Originally introduced in december 2008, the bill has undergone numerous revisions and has been the subject of intense debate. Nigeria has moved closer to turning an oil industry bill into law after a 17 year struggle to complete the legislation which aims to increase transparency and stimulate growth in the countrys oil. An analysis of the nigeria petroleum industry bill2012. The politics and crisis of the petroleum industry bill in. Petroleum act chapter p10 chapter 350 lfn 1990 laws of the federation of nigeria arrangement of sections 1. Nigeria s total petroleum refining capacity is 445,000 barrels 70,700 m 3 per day, however, only 240,000 barrels 38,000 m 3 per day was allotted during the 1990s. Reforming nigerias petroleum industry 3 the petroleum industry bill s proposed fiscal regime 6 the petroleum host communities fund phcf and its ambiguities 10 environmental implications of passing the petroleum industry bill the following analysis was written and published over the period of august 2015.
Nigerian senate passes petroleum industry governance bill the bill has gone through 5 sessions of the national assembly, beginning from the 4th assembly which was inaugurated in. An oil exploration licence oel is necessary to conduct preliminary exploration surveys. After years of delay, the senate on thursday passed the petroleum industry governance bill, inching closer to regulatory and business reforms in the nations oil and gas industry. National oil spills detection and response agency nosdra act 2006 cap. Offences in connection with the distribution of petroleum products 6. The discovery was made by shellbp, at the time the sole concessionaire. History of the nigerian petroleum industry oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of exploration.
Nigerian oil and gas industry content development act, 2010. The nigerian oil and gas industry and it was ni multisim 10 pdf recommissioned in year 2007. Subsequently, crude oil production for refineries was reduced further to as little as 75,000 barrels 11,900 m 3 per day during the regime of sanni abacha. This is reflected through the nigerian government initiative of increasing local content and ensuring that indigenous companies have a greater part in developing oil and gas assets. The bill is the first in a series of long awaited petroleum industry laws designed to reform the nigerian oil and gas industry. The department of petroleum resources dpr, an arm of the ministry of petroleum resources, recognizing the national importance of the oil and gas industry sector to the continued growth of the nigerian economy and realizing that the continued exploitation, exploration and production of the. By taiwo oyedele from sports to entertainment, tourism to technology, infrastructural development to industrialisation, and the list goes on nigeria is a country that is often celebrated more for her potentials than real achievements. Pdf the politics and crisis of the petroleum industry bill in nigeria. The politics and crisis of the petroleum industry bill in nigeria article pdf available in the journal of modern african studies 5203.
Global business and economics research journal, 25. Since then, there have been various reports on the refusal of the president to assent to the first of four bills seeking to reform the nigerian oil. Implications of nigerias draft petroleum fiscal policy. Nigerias petroleum industry bill natural resource governance. This is the passage of the first fragment of the comprehensive petroleum industry bill pib, which was broken into parts to. This is indeed a great development and right step in bringing sanity to the petroluem industry. No one would doubt that the taxation of severed mineral interests as well as oil and gas production is an important issue as governments hope to capitalize on this burgeoning industry, while maintaining an attractive environment for business expansion. Nigerian oil and gas industry content development act 2010, cap. The petroleum industry governance bill pigb was passed by the senate on 25 may 2017.
The nigerian oil and gas industry has developed, focusing on increasing indigenous participation in the industry. The impact of petroleum on economic growth in nigeria. The petroleum industry bill pib, an omnibus law meant to regulate the entire sphere of the industry and repeal all current existing oil and gas legislation, had struggled to see the light of day despite its. This is potentially welcome, yet the bill ultimately fails to offer a clear path to more effective management of nigeria s stateowned oil enterprises. If the house of representatives concurs, it could be signed into law. Fiscal regime under the new petroleum industry bill. The licence is nonexclusive and is granted for a period of one year. An overview of the nigerian oil and gas industry local. Nigeria extractive industries transparency initiative neiti act 2007, cap. Laws of the federation of nigeria petroleum act 1990. The international oil companies iocs in nigeria have expressed concern over the. Nigerian oil and gas industry has attracted substantial investments over the years.
Dynamics, controversies and wayforward ppt presentation pack of the main paper. At the time of our report, the news coverage had focused on the president rejecting the bill because it whittled down his powers. With the promulgation of the act, the government has clearly established its intention to increase indigenous participation in the industry in. Oil exploration licences, oil prospecting licences and oil mining leases 3. The new petroleum industry bill and taxation of petroleum. The petroleum act 1969 provides for the grant by the minister of petroleum resources of three types of interests exploration, prospecting and production rights. 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. Nigerian oil and gas industry content development act, 2010 shall remain as a.
The much anticipated petroleum industry bill 2012 the pib was. Petroleum industry fiscal bill news latest breaking. Led by the members of the industry reform committee, who authored the original draft of the bill and has been absorbed both by the nigeria national petroleum company nnpc and the ministry of. Nigerian petroleum industry bill, upstream sector, the international oil companies. Status of the nigerian oil and gas industry the pib. The key objectives of the bill as stated in part 1 of the pib are. Nigerian petroleum industry bill 2012 pdf establishment of the petroleum technical bureau. In this policy brief, we examine and underline provisions in the original 2008 presidency submission hb 159. National bureau of statistics, nigeria poverty profile 2010 abuja nigeria. Public regulation of the oil and gas industry in nigeria. Going forward there is a clear need to reform nigeria s petroleum laws. Nigeria passes major oil reform bill after 17 year. 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. Model psc under the petroleum act page 2 production sharing contract dated this agreement is a production sharing contract made under the petroleum act between the, acting on behalf of the democratic republic of timorleste the ministry.
Nigerian senate passes petroleum industry governance bill. Petroleum act cap 350,laws of the federation of nigeria, as amended. Nigerian oil and gas industry and make it more relevant to the sustainable development of the nigerian state report by akin akinsipe 08023173582 the nigerian economy and the relevance of the petroleum industry nigeria. The petroleum industry bill is gaining more attention in nigeria s national assembly as the current administration plans to create a powerful energy regulator analysing the pib, a report by. The petroleum industry governance bill kpmg nigeria. The petroleum industry bill pib, an omnibus law meant to regulate the entire sphere of the industry and repeal all current existing oil and gas legislation, had struggled to. Nigeria the petroleum industry bill and the future of nnpc. The politics and crisis of the petroleum industry bill in nigeria the. News and information about nnpc, a public organization that manages the governments interests in the nigerian oil industry. The 2012 executive draft of the petroleum industry bill 2012 pib proposes to restructure the nigerian national petroleum corporation nnpc.
An analysis of the nigerian petroleum industry bill 2012. Model production sharing contract under the petroleum act. Includes business units of exploration and production, gas development, refining, distribution, petrochemicals, engineering, and commercial investments. The nigerian oil and gas industry content development act the act is designed to enhance the level of participation of nigerians and nigerian companies in the countrys oil and gas industry. The nigerian petroleum industry bill pib, which is currently being discussed in. The study concludes that, if the petroleum industry bill is passed and implemented to the letters, there exists hope for the nigerian nation. The current climate of the industry has largely been influenced by the. Pdf the petroleum industry bill 2012 and the niger delta region.
Last week we reported that the president withheld his assent to the petroleum industry governance bill pigb. The petroleum industry bill pib and the petroleum industry governance and institutional framework pingif bill 5 2. The nigerian petroleum industry bill semantic scholar. An evaluation of the effect of the proposed fiscal terms on investment in the upstream sector. The pib is an executive bill for an act to provide for the establishment of a legal, fiscal and regulatory framework for the petroleum industry in nigeria and for related matters. Reacting to the passage of the bill, nigeria union of petroleum and natural gas workers, nupeng, and. When passed into law, the act will repeal some of the major legislations governing the nigerian petroleum industry including most significantly, a. An act to provide for the governance and institutional framework for the petroleum industry and for other related matters commencement. All the activities in the oil and gas value chain are covered the policy covers all sectors of the petroleum industry upstream, midstream and downstream, and includes oil. The petroleum industry bill the pib or the bill is perhaps the most talked about piece of legislation in nigeria ever, given the far reaching reforms which it proposes to an industry which is the single most significant contributor to the national economy. Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream producing 5,100 bpd. Senate passes petroleum industry bill, pib vanguard news.
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