The Institute of Oil & Gas Research & Hydrocarbon Studies (IOGRHS) held the Commonwealth Induction Programme “Abuja 2021” at the Nicon Luxury Abuja, Nigeria on Friday December 10, 2021 as planned. The subject that was treated is: “Dissecting the Petroleum Industry Act 2021” and the lead lecturer, Prof. Charity Emaviwe, a Professor of Law and Professor of Oil & Law as expected did justice to the topic. She discussed issues around governance, administration, fiscal framework, institutions and some miscellaneous provisions in the PIA. “In the beginning, Chief Olusegun Obasanjo, former Nigerian President inaugurated the Oil and Gas Reform Implementation Committee with a mandate to review and streamline the various petroleum laws in order to provide an efficient legal regulatory framework for the sector but not much was achieved till the year 2008 when the first EXECUTIVE sponsored Petroleum Industry Bill was sent to the National Assembly for consideration and passage”. she said. The legal luminary commended President Muhammadu Buhari for not just signing the bill into law on the 16th Day of August 2021 but his persistence of sending and re-sending the bill to the National Assembly of which both Chambers finally passed on the 1st day of July 2021. The Petroleum Industry Act (PIA) 2021 gives power to the Minister of Petroleum to formulate, monitor, administer government policies and supervise the operations in the Nigerian petroleum sector. The Minister is also empowered to negotiate treaties and international agreements that will provide and promote an enabling environment. The Minister shall grant petroleum prospecting licenses (exploration, marketing and distribution) upon the recommendation of the Commission. PIA brings on board the following organisations:
a) NIGERIAN UPSTREAM REGULATORY COMMISSION;
b) NIGERIAN MIDSTREAM & DOWNSTREAM PETROLEUM REGULATORY AUTHORITY;
c) NIGERIAN NATIONAL PETROLEUM COMPANY (NNPC) LTD.
Some of the finest sections of the PIA is the prohibition of natural gas flaring – even though it appears there is an escape route for hydrocarbon companies with the penalty of fines prescribed pursuant to the Flare Gas (prevention of waste and pollution) regulations; and the prevention of monopoly and anti-competitive behaviour; involvement of stakeholders in making regulations; offences and penalty; host communities development; a progressive fiscal framework that encourages investment; hydrocarbon tax for onshore, offshore, shallow water, deepwater upstream operations, etc. The erudite Professor recommended as follows:
1) the procedure for the acquisition of licences and leases pursuant to the Act should be transparent;
2) indigenous participation in the petroleum industry should be encouraged;
3) adequate enforcement mechanism should be put in place to ensure enforcement of the provisions of the Act;
4) the percentage provided for the host community development fund should be increased to at least 10%;
5) the 30% provided frontier basin oil exploration should be reduced;
6) a clear definition of the areas that constitute the frontier basin should be precisely provided.
The Technical Committee of the Institute of Oil & Gas Research & Hydrocarbon Studies (IOGRHS) adhered to the protocols outlined by the Nigeria Centre for Disease Control (NCDC) in respect of COVID 19. The Institute seizes this opportunity to thank all the participants, Council Members, Technical Committee Members, etc for their attendance and wishes everyone a very merry Christmas and prosperous new year (2022). Please see some of the photographs the camera lens captured:
signed: GabdojokodolaAya, FIOGR
For The Technical Committee