The oil and gas industry in nigeria was not immune from these government policies. Laws of the federation of nigeria petroleum act 1990. The law 8614 implemented the former hydrocarbons code hereafter referred to as. A serious attempt was, however, made in 2010 with the promulgation of the nigerian oil and gas development law and it defines local content as. Eghosa osa ekhator abstract nigeria operates a command and control regulatory framework in the oil and gas sector. Introduction this article focuses on the various legislative enactments governing the oil and gas regime in nigeria. Ownership of oil blocks and mining licences allows the holder to prospect opl or mine oil fields oml in nigeria. The reason for this is that the oil and gas industry in nigeria accounts for about 90%.
The current climate of the industry has largely been influenced by the. Nigerian oil and gas industry content development act, 2010. The primary piece of legislation governing the exploration and production of oil and natural gas is the petroleum act laws of the federal republic of nigeria lfn 2004. South africa is thus a small but growing competitor in the oil and natural gas industry. Jun 08, 2018 oil and gas law payment of compensation. Nigeria passes major oil reform bill after 17 year struggle. Nigeria has been described as a gas province with a little bit of oil. Examining local content law and policy in the oil and gas industry, this book uses nigeria as a primary case study, comparing its approach to countries such as brazil and norway which have also adopted local content laws in relation to their gas and oil industries.
Jan 07, 2019 a structured guide to oil and gas exploration and production laws in nigeria. These divestments represent the single largest opportunity for indigenous companies to participate in the upstream oil and gas. Sector reform implementation committee ogic on april 24, 2000. The essence of the national oil and gas policy nogp that emerged from the ogic efforts is anchored on the need to separate the commercial institutions in the oil and gas sector in nigeria from the regulatory and policymaking institutions. Jan 18, 2018 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. Evolution of environmental regulations in nigeria in response to the environmental problems, nigeria s government has enacted the following regulations, which are aimed at mitigating impact of these problems. Public regulation of the oil and gas industry in nigeria. Relevant state agencies and their roles under the nigerian constitution, all minerals, mineral oils and natural gas in nigeria is vested in the government of. Pdf oil pollution is without a doubt a serious issue in nigeria today. Environment, policies, strategies, nigeria, oil and gas industry 1. Best practice for local content development strategy. Nigeria therefore presents significant opportunities for both foreign and local investors in the oil and gas industry. Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream producing 5,100 bpd.
These laws are the primary authorities such as caselaw, statutes, rules, regulations and edicts related to energy. Claim for damages to land and environment arising from oil connected pipelaying activities responsibility of the holder of an oil pipeline license whether the construction, operation and maintenance of oil pipeline by a holder of oil prospecting licence is an act pertaining to mining operation. After 1960, exploration rights in onshore and offshore areas adjoining the niger. Oil companies operating in nigeria will have sold at least 250,000 barrels per day worth of equity in onshore and shallow water producing assets in the oil producing niger delta region. The thesis also examines the major challenges in nigeria s oil and gas industry and identifies viable areas in canadas oil and gas tax system which have the potential to address these challenges. Oil and gas exploration and production laws in nigeria lexology. Spence,corporate social responsibility in the oil and gas industry. Oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of exploration. The statutory legal regime for the prevention of environmental degradation in nigeria.
Regional trends in the middle east and north africa damilola s. The nigerian oil and gas industry has developed, focusing on increasing indigenous participation in the industry. The act governs and regulates the exploration, production and distribution of petroleum and petroleum products in nigeria. However, in fulfilling this objective, section4 of the local content act established the nigerian content development and monitoring board. Oil and gas law in nigeria by yinka omorogbe a new empirical study on oil and gas in nigeria, which serves as a useful general introduction to many aspects of the countrys oil and gas industries and related laws. Oil, energy poverty and resource dependence in west africa. Claim for damages to land and environment arising from oilconnected pipelaying activities responsibility of the holder of an oil pipeline license whether the construction, operation and maintenance of oil pipeline by a holder of oil prospecting licence is an act pertaining to mining operation. The constitution, the petroleum act and the exclusive economic zone act grant the rights to, as well as the control of, all minerals, mineral oils and gas in nigeria and its territorial waters and. Offences in connection with the distribution of petroleum products 6. According to the oil and gas journal ogj, at the end of 2011, nigeria is estimated to have a proven oil reserve of 37. Corporate social responsibility in the oil and gas industry. Nigerian oil and gas industry content development act 2010 no. Oil and gas law in nigeria by yinka omorogbe, paperback.
Environmental policies and strategies in nigeria oil and. 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. Oil and gas activities are regulated by the hydrocarbons code and its texts of. Oil governance and development in africas gulf of guinea, vol 1 abuja, nigeria. Insights from new company disclosures analyzing nigerias oil and gas sector ptg reports provide citizens with unprecedented levels of relevant and timely projectlevel payment data that can be used to inform public debate on the management of nigerias natural resources. Oil exploration licences, oil prospecting licences and oil mining leases 3. The passage into law of the nigerian local content bill is one of the significant developments for domesticating the oil and gas industry through local value additions to the local economy. List of nigerian businesses and organisation related to government regulatory agencies. Energy law includes the legal provision for oil, gasoline, and extraction taxes.
The paradox of the black gold 341 because of the con. The paradox of the black gold article pdf available in research in social problems and public policy 18. It has the largest acreage in the country from which it produces some 39 per cent of the nations oil the companys operations are concentrated in the niger delta and adjoining shallow offshore areas where it operates in an oil mining lease area of around 31,000 square kilometres. Apart from the loss of petroleumderived revenue to corruption and. Shell petroleum development company spdc is the pioneer and leader of the petroleum industry in nigeria. Nigeria directory plans to list all nigerian businesses and organisations. Nigerian oil industry, including the constitution of nigeria 1999, land use act, 4 petroleum act, 5 associated gas reinjection act, 6 environ mental impact assessment act eia, 7 oil pipelines act, 8 petroleum. Laws of the federation of nigeria arrangement of sections 1. Job description reporting to the country manager, this person will assist, and ultimately assume responsibility for legal support in connection with the companys activities in nigeria. In contrast, energy policy refers to the policy and politics of energy.
Local content and procurement requirements in oil and gas contracts. Introduction it is very important to note that each time environmental issues are mentioned in nigeria, the oil and gas industry readily comes to mind. Oil and gas deposits may stretch over several pieces of property with different owners. Contracts for exploration and production 38 exploration and production contracts 38 the. Oil exploration explosives meaning under the explosives regulations cap. The objective of the local content act as stated in sections 3, 7 and 11 of the local content act is to promote the use of local materials and services for the development of the oil and gas industry. 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 oil producing host communities around the world. The oil majors view any compulsory acquisition of portions of their omls as an act of expropriation and in breach of the terms under which the leases were granted. Oil and gas tax guide for africa 2015 a quick guide to oil and gas tax regimes in some of africas fastest growing. Nigeria operates a command and control regulatory framework in the oil and gas sector. This explains that the act, at the time it was promulgated, was not meant to prevent the environmental pollution and degradation of other natural resources in nigeria, but to lay down in law that these pipelines were legal and should not be violated by others. 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.
According to bmi research, in 2015, south africa had estimated proven oil reserves of only. This is testimony to our huge gas reserves which is estimated at 120 trillion cubic feet. An overview of the nigerian oil and gas industry local. Local content and procurement requirements in oil and gas. Nigeria is the largest oil and gas producer in africa. 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. Jan 07, 2019 the constitution vests control of all minerals, mineral oils and gas in, under or on any land in nigeria and its territorial waters and exclusive economic zone in the government, to be managed in.
Noc became nigerian national petroleum corporation nnpc in 1977. A new empirical study on oil and gas in nigeria, which serves as a useful general introduction to many aspects of the countrys oil and gas industries and related laws. Crude oil was first discovered in commercial quantities in nigeria in 1956, while actual production started in 1958. Whoever taps into a reservoir of oil or gas will be removing these resources from all the exhibit 11 common law theories of ownership of oil and gas nonownership theory based on profit a prendre, the right to go onto land and take some part of it. Within the legal framework required by nigerian laws over pollution and environmental degradation, this paper discusses some of the major oil and gas regulations with the aim of finding a lasting solution to the problems of violations and noncompliance. Oil and gas exploration and production laws in nigeria. Insights from new company disclosures analyzing nigeria s oil and gas sector ptg reports provide citizens with unprecedented levels of relevant and timely projectlevel payment data that can be used to inform public debate on the management of nigeria s natural resources. The nigerian oil and gas industry content development act. Olawuyi, senior visiting research fellow, oies and associate professor of law, hamad bin khalifa university, doha, qatar. A survey of the literature on local content policies in the oil and gas industry in east africa chilenye nwapi summary although oil and gas exploration has been going on in east africa for decades, until recently exploration activities grew more slowly compared to. Forestry act 1958, antiquities act 1958, territorial waters decree 1967, oil in navigable waters decree 1968, petroleum decree 1969.
South africas oil and gas resources are relatively undeveloped. Relevant state agencies and their roles under the nigerian constitution, all minerals, mineral oils and natural gas in nigeria. Energy laws govern the use and taxation of energy, both renewable and nonrenewable. This type of regulation was prevalent in the united states and britain during the 1970s and 1980s. It has the largest acreage in the country from which it produces some 39 per cent of the nations oil.
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