Nigeria has a total of 159 oil fields and 1481 wells in operation according to the department of petroleum resources. Nigeria passes major oil reform bill after 17 year. The petroleum industry bill pib 20092010 has been touted as. The pib was introduced was to the national assembly in september 2008.
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. E akpofure abstract as a consequence of the illegal dumping of toxic wastes in koko, in the former bendel state, in 1987, the nigerian government promulgated the harmful wastes decree which provides the legal framework for the. Review of the petroleum industry governance and institutional framework bill introduction many commentators and stakeholders, in the nigerian oil and gas industry have called for the muchpublicized petroleum industry bill to be enacted into. We can only hope for the quick passage of the relevant. The petroleum industry bill pib which is the outcome of the oil and gas reform implementation committee ogic, set up by the administration of former president olusegun obasanjo in 2000, is aimed at legislating the proposed reforms in the nigerian. 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 governance bill the. This is the first time that such a largescale consolidation has happened anywhere in the world. Nigeria the petroleum industry bill and the future of nnpc. The recommendations of ogic were approved and formed the basis of the petroleum industry bill. The petroleum industry bill pib combines 16 different nigerian petroleum laws in a single transparent and coherent document. Nigerian oil and gas industry content development act 2010 no. Dynamics, controversies and wayforward by comrade hyginus chika onuegbu jp, fca chairman, nupeng.
Canada is reputed to have one of the best oil and gas tax regimes in the world. Several stakeholders in nigeria s oil and gas industry have emphasized the need for petroleum sector reforms in nigeria. Nigerian extractive industries transparency initiative act. The petroleum industry governance bill kpmg nigeria. The fall and rise of the nigerian petroleum industry. The petroleum industry administration bill 2018 8 the petroleum industry administration bill a bill for an act to provide for the establishment of the administrative framework for the petroleum industry in nigeria and for other related matters. What exactly is this petroleum industry governance bill. The senate of the federal republic of nigeria frn, on thursday 25 may. Nigerias petroleum industry bill natural resource governance. 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. The bill sought to provide consensus regarding disparate aspects of nigeria s rapidly. The petroleum industry governance bill 1 this policy brief assesses environmental and other aspects of the petroleum industry governance bill pigb.
Pdf the politics and crisis of the petroleum industry bill in nigeria. Issues with the pib before the national assembly passes the pib, these 14 issues must be considered lest we fail to optimize the opportunity to fix nigeria s major source of revenue. Senate passes petroleum industry bill, pib vanguard news. Nigeria s new oil industry bill ready to launch almost two decades after a petroleum industry bill was first mooted and after numerous revisions, the country is. 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. Oil exploration licences, oil prospecting licences and oil mining leases 3.
Implications of nigerias draft petroleum fiscal policy nevertheless, the nigerian government needs to strike a balance between the countrys drive for increased oil revenue in the short term, and the long term guarantee of revenue from the major players in the industry through taxation. Model production sharing contract under the petroleum act. The petroleum industry governance bill was passed by the nigerian legislature in the second quarter of 2018, and sent to the president for assent. This thesis argues that certain tax measures in canadas oil and gas industry have considerable potential for addressing certain industry. If the house of representatives concurs, it could be signed into law. Pdf the petroleum industry bill 2012 and the niger delta region. We can all agree that the purpose of the petroleum industry bill to code of corporate governance as issued by securities and pib whichever version you pick is to restructure nigeria s oil exchange commission, its enforcement will be very difficult if the since we have established that equalisation is beneficial, how can we. Laws of the federation of nigeria petroleum act 1990. 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. Understanding the elements of the petroleum industry governance bill pigb preamble the oil and gas industry have been the pivot on which the nigerian economy has depended for decades. The oil and gas industry in nigeria published by ggu law digital commons, 2016. 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.
The bill is the first in a series of long awaited petroleum industry laws designed to reform the nigerian oil and gas industry. The pigb was passed by the nigerian senate in may 2017, and house of representatives in january 2018, as part of a package of legislative reform for the oil. The 2012 executive draft of the petroleum industry bill 2012 pib proposes to restructure the nigerian national petroleum corporation nnpc. 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. Laws of the federation of nigeria arrangement of sections 1. 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. Disu introduction a central plank of a green deal for nigeria is the transition to the sustainable management of nigeria s oil and gas resources.
Issues involved in petroleum industry bill and national development in nigeria despite the stated objectives, most of the debate on the petroleum industry bill pib revolves around. The nigerian senate thursday passed the petroleum industry governance bill, seventeen years after it was first introduced to the national assembly. 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. The transformation from fossil fuel to green energy. Dynamics, controversies and wayforward ppt presentation pack of the main paper. The petroleum industry governance bill pigb was passed by the senate on 25 may 2017. In this short piece, pulse explains what the petroleum industry governance bill pigb is all about and why nigerians cant stop talking about it. The discovery was made by shellbp, at the time the sole concessionaire.
Nigerian senate passes petroleum industry governance bill. 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. Sanni abacha he was made chairman of the petroleum trust fund. This is the passage of the first fragment of the comprehensive petroleum industry bill pib, which was broken into parts to. Unfortunately, the president returned the bill to the legislature, citing. 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.
The most productive region of the nation is the coastal niger delta basin in the niger delta or southsouth region which encompasses 78 of the 159 oil fields. 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. 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. If the final petroleum industry bill pib contains strong transparency and accountability provi sions, nigerias oil sector performance. 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. Most of nigeria s oil fields are small and scattered, and as of. The bill will replace nigerias main legislation in the oil and gas industry written in 1969 and nnpc decree of 1997. Pdf the nigerian petroleum industry bill pib, which is currently being discussed in parliament, aims at reforming the oil industry. Public regulation of the oil and gas industry in nigeria. Pdf nigeria is a major oil and gas producing country. This is potentially welcome, yet the bill ultimately fails to offer a clear path to more effective management of nigeria s stateowned oil enterprises.
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