Petroleum Industry Act Quiz

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What is one of the powers of the Minister in the petroleum industry?

Monitor government policy in the petroleum industry

Formulate government policy in the petroleum industry (correct)

Enforce government policy in the petroleum industry

Implement government policy in the petroleum industry

What is one of the roles of the Minister in the petroleum industry?

Supervise the affairs and operations of the petroleum industry

Negotiate treaties on behalf of the petroleum industry

Invest in the petroleum industry

Report developments in the petroleum industry to the government (correct)

What is one of the responsibilities of the Minister in the petroleum industry?

Administer government policy in the Nigerian petroleum industry

Promote investment in the Nigerian petroleum industry (correct)

Exercise general supervision over the Nigerian petroleum industry

Represent Nigeria at international organizations on petroleum matters

According to the Petroleum Industry Act, 2021, who has the property and ownership of petroleum within Nigeria and its territorial waters?

The Government of the Federation of Nigeria Signup and view all the answers

What are the objectives of Chapter 1 of the Petroleum Industry Act, 2021?

To establish a framework for the creation of a commercially oriented and profit-driven national petroleum company Signup and view all the answers

Which part of the Petroleum Industry Act, 2021 deals with the Minister of Petroleum?

Part II - Minister of Petroleum Signup and view all the answers

Which entity is the property and ownership of petroleum within Nigeria vested in?

The Government of the Federation of Nigeria Signup and view all the answers

What is one of the objectives of Chapter 1 of the Petroleum Industry Act, 2021?

To foster a business environment conducive for petroleum operations Signup and view all the answers

What is the purpose of the Petroleum Industry Act, 2021?

To provide legal, governance, regulatory, and fiscal framework for the Nigerian petroleum industry Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the powers of the Minister?

To grant petroleum prospecting licences and petroleum mining leases through the processes established in this Act Signup and view all the answers

What is one of the roles of the Minister in the petroleum industry?

To exercise general supervision over the affairs and operations of the petroleum industry Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the responsibilities of the Minister?

To report developments in the petroleum industry to the government Signup and view all the answers

What is one of the powers of the Minister in relation to petroleum operations?

To direct in writing the suspension of petroleum operations in any area Signup and view all the answers

According to the Petroleum Industry Act, 2021, how many non-executive commissioners are there on the Board of the Commission?

Two Signup and view all the answers

According to the Petroleum Industry Act, 2021, how long is the term of office for a person appointed as a non-executive commissioner?

5 years Signup and view all the answers

According to the Petroleum Industry Act, 2021, how many representatives of the Ministry are on the Board of the Commission?

One Signup and view all the answers

According to the Petroleum Industry Act, 2021, who appoints the members of the Board of the Commission?

The President Signup and view all the answers

According to the Petroleum Industry Act, 2021, how many non-executive commissioners can resign their appointment by giving two-month's written notice to the President?

Three Signup and view all the answers

How many executive commissioners are there for the Commission?

Six Signup and view all the answers

How many years of post-qualification cognate experience is required for a person to be appointed as the Commission Chief Executive and as an executive commissioner of the Commission?

15 Signup and view all the answers

How long is the initial term of appointment for the Commission Chief Executive?

5 years Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the powers of the Minister in relation to petroleum operations?

The Minister has the power to assign interests in petroleum prospecting licences and petroleum mining leases. Signup and view all the answers

According to the Petroleum Industry Act, 2021, who is responsible for granting petroleum prospecting licences and petroleum mining leases?

The Commission Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the powers of the Minister in the context of international oil pricing agreements supported by Nigeria?

The Minister has the power to order a cutback of the levels of crude oil or condensate production. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the functions of the Commission with respect to frontier basins?

Review and approve the environmental aspects of field development plans Signup and view all the answers

What is one of the functions of the Commission in managing upstream petroleum operations?

Perform technical evaluation and assessments for downstream petroleum operations Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the responsibilities of the Commission?

Manage and administer data regarding unallocated acreage Signup and view all the answers

What is one of the functions of the Commission in conducting bidding rounds for petroleum prospecting licences and petroleum mining leases?

Advise the Minister on technical matters related to upstream petroleum operations Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of the Frontier Exploration Fund?

To fund the exploration and development of frontier acreages Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the percentage of NNPC Limited's profit oil and profit gas that is allocated to the Frontier Exploration Fund?

30% Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the role of NNPC Limited in the event of a commercial discovery in frontier acreages?

NNPC Limited has the first right of refusal in the award of the acreage for subsequent development Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the powers of the Commission?

To enforce regulations made with respect to upstream petroleum operations Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the main responsibility of the Nigerian Upstream Petroleum Regulatory Commission (the Commission)?

To regulate technical and commercial aspects of upstream petroleum operations Signup and view all the answers

What is one of the objectives of the Nigerian Upstream Petroleum Regulatory Commission (the Commission) as stated in the Petroleum Industry Act, 2021?

To determine, administer, and ensure the implementation and maintenance of technical standards for upstream petroleum operations Signup and view all the answers

What is one of the functions of the Nigerian Upstream Petroleum Regulatory Commission (the Commission) as stated in the Petroleum Industry Act, 2021?

To enforce, administer, and implement laws, regulations, and policies relating to downstream petroleum operations Signup and view all the answers

What is one of the powers of the Nigerian Upstream Petroleum Regulatory Commission (the Commission) as stated in the Petroleum Industry Act, 2021?

To ensure compliance with all applicable laws and regulations governing downstream petroleum operations Signup and view all the answers

According to the Petroleum Industry Act, 2021, which of the following individuals is eligible to be appointed as the Commission Chief Executive or an Executive Commissioner, despite having a financial interest in the petroleum industry?

An individual who declares their interest and makes appropriate arrangements to avoid a conflict of interest Signup and view all the answers

Under the Petroleum Industry Act, 2021, which of the following conditions must be met for an individual to be eligible for appointment as the Commission Chief Executive or an Executive Commissioner, despite being a relative of a person engaged in any activity connected with the petroleum industry?

The President must be satisfied that the interest or activity will not interfere with the person's impartial discharge of their duties Signup and view all the answers

According to the Petroleum Industry Act, 2021, which of the following individuals is NOT eligible to be appointed as the Commission Chief Executive or an Executive Commissioner?

An individual who has been convicted of a criminal offense by a court of competent jurisdiction except for traffic offenses Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the responsibilities of the Commission?

To carry out enquiries, tests, audits or investigations and take other steps to monitor the activities of licensees, lessees or permit holders Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the functions of the Commission?

To establish and enforce standards relating to downstream petroleum operations Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the objectives of the Commission?

To set, define and enforce approved standards and regulations for design, construction, fabrication, operation and maintenance of plants, installations and facilities used or to be used in downstream petroleum operations Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the powers of the Commission?

To administer, monitor and enforce compliance with the terms and conditions of leases and licences granted and permits and authorisations issued to a company in respect of downstream petroleum operations Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the provisions that the terms and conditions of service for employees of the Authority may include?

The appointment, promotion, dismissal, and discipline of employees Signup and view all the answers

Under the Petroleum Industry Act, 2021, what does the term 'appointment' include in relation to employees of the Authority?

Secondment, transfer, and contract appointments Signup and view all the answers

According to the Petroleum Industry Act, 2021, who are the employees of the Authority considered to be?

Public officers Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the name of the body corporate responsible for the technical and commercial regulation of midstream and downstream petroleum operations in the petroleum industry?

The Nigerian Midstream and Downstream Petroleum Regulatory Authority Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the name of the unit or person authorized by the Commission to perform the special powers of the Commission?

The Special Investigation Unit Signup and view all the answers

According to the Petroleum Industry Act, 2021, who shall be indemnified out of the Commission Fund against any liability incurred in defending any proceeding against the Commission or brought against him in his official capacity?

The Commission Chief Executive, a commissioner or any officer of the Commission Signup and view all the answers

According to the Petroleum Industry Act, 2021, how long is the initial term of office for a person appointed under subsection (2) (a) and (b)?

5 years Signup and view all the answers

According to the Petroleum Industry Act, 2021, how long is the term of office for a member of the Board of the Authority?

5 years Signup and view all the answers

According to the Petroleum Industry Act, 2021, how long is the term of office for an executive director of the Authority?

3 years Signup and view all the answers

According to the Petroleum Industry Act, 2021, how many consecutive times can a member of the Board of the Authority be absent from the meeting without the consent of the Chairman or the President?

3 Signup and view all the answers

According to the Petroleum Industry Act, 2021, how many executive directors are there for the Authority?

Seven Signup and view all the answers

According to the Petroleum Industry Act, 2021, how many years of post-qualification cognate experience is required for a person to be appointed as Authority Chief Executive and as an executive director of the Authority?

15 years Signup and view all the answers

According to the Petroleum Industry Act, 2021, how long is the initial term of appointment for the Authority Chief Executive?

5 years Signup and view all the answers

According to the Petroleum Industry Act, 2021, how many non-executive members can resign their appointment by giving two month's written notice to the President?

Three Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the functions of the Nigerian Upstream Petroleum Regulatory Commission (the Commission)?

Establish, monitor, regulate, and enforce technical, health, environmental, and safety measures relating to midstream and downstream petroleum operations Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the responsibilities of the Commission?

Administering and monitoring strategic stocks of petroleum products Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the powers of the Minister?

Implement and enforce compliance with laws, regulations, and policies relating to midstream and downstream petroleum operations Signup and view all the answers

According to the Petroleum Industry Act, 2021, how many non-executive commissioners are there on the Board of the Commission?

5 Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the objectives of the Authority?

Regulate technical and commercial midstream and downstream petroleum operations in Nigeria Signup and view all the answers

What is one of the functions of the Authority as stated in the Petroleum Industry Act, 2021?

Regulate and monitor technical and commercial midstream and downstream petroleum operations in Nigeria Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the responsibilities of the Authority?

Promote healthy, safe, efficient, and effective conduct of midstream and downstream petroleum operations Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the functions of the Authority in relation to natural gas and petroleum products?

Promote the supply and distribution of natural gas and petroleum products in midstream and downstream petroleum operations and the security of natural gas supply for the domestic gas market Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the functions of the Nigerian Upstream Petroleum Regulatory Commission (the Commission)?

Regulate the bulk storage, distribution, marketing and transportation pipelines of petroleum products Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the roles of the Minister in the petroleum industry?

Advise the Government, government agencies and other stakeholders on commercial matters relating to tariff and pricing frameworks Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the powers of the Nigerian Upstream Petroleum Regulatory Commission (the Commission)?

Grant, issue, modify, extend, renew, review, suspend, cancel, reissue or terminate licences, permits and authorisations for midstream and downstream petroleum operations Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of the Frontier Exploration Fund?

Allocate funds for the exploration of frontier acreages Signup and view all the answers

According to the Petroleum Industry Act, 2021, which of the following is NOT a function of the Authority?

Ensuring the continuity and security of the supply of natural gas, crude oil, and petroleum products to customers Signup and view all the answers

According to the Petroleum Industry Act, 2021, which of the following is NOT a member of the Governing Board of the Authority?

The Chief Executive of the Authority Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of the Gas Infrastructure Fund?

To provide funding for midstream and downstream gas infrastructure investment within the Host Community of a designated facility Signup and view all the answers

According to the Petroleum Industry Act, 2021, how are appointments to the Board of the Authority made?

By the President and subject to confirmation by the Senate Signup and view all the answers

According to the Petroleum Industry Act, 2021, who holds the ownership of all shares in NNPC Limited at incorporation?

The Government Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the name of the limited liability company to be incorporated under the Companies and Allied Matters Act?

Nigerian National Petroleum Company Limited (NNPC Limited) Signup and view all the answers

According to the Petroleum Industry Act, 2021, who approves the transfer of shares held by the Government in NNPC Limited?

The Government Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the objectives of NNPC Limited?

To carry out petroleum operations on a commercial basis Signup and view all the answers

What is the percentage of NNPC Limited's profit oil and profit gas that is allocated to the Frontier Exploration Fund, according to the Petroleum Industry Act, 2021?

30% Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the responsibilities of the Nigerian Upstream Petroleum Regulatory Commission (the Commission)?

To ensure the integrity of accounting systems Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the powers of the Minister in the petroleum industry?

To propose and implement changes Signup and view all the answers

According to the Petroleum Industry Act, 2021, who becomes responsible for any debt related to outstanding cash calls under joint venture agreements when the assets have been transferred to NNPC Limited?

NNPC Limited Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the initial capitalization requirement for NNPC Limited?

Not less than its financial requirements Signup and view all the answers

According to the Petroleum Industry Act, 2021, who appoints NNPC Limited as the agent of NNPC for the purpose of managing the process of winding down the assets, interests, and liabilities of NNPC?

President Signup and view all the answers

According to the Petroleum Industry Act, 2021, who bears the cost of winding down the assets, interests, and liabilities of NNPC?

Government Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the minimum percentage of profits that NNPC Limited must retain as retained earnings to grow its business?

20% Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the time period within which the Minister and the Minister of Finance must determine the assets, interests, and liabilities of NNPC to be transferred to NNPC Limited or its subsidiaries?

18 months Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens to the assets, interests, and liabilities of NNPC if the determination of which assets to transfer is not concluded within the stipulated period of 18 months?

They become the assets, interests, and liabilities of NNPC Limited Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens to the pending actions or proceedings brought by or against NNPC before the transfer date?

They are discontinued Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the responsibilities of the Board of NNPC Limited?

Developing formal and transparent processes for the creation of committees Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the functions of the committees of the Board of NNPC Limited?

Ensuring the integrity of financial and non-financial reporting Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the responsibilities of the members of the Board of NNPC Limited?

Discharging their responsibilities in accordance with the highest standards of corporate governance Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the responsibilities of NNPC Limited's auditor?

Providing external and objective assurance on the financial statements of NNPC Limited Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of NNPC Limited being the supplier of last resort?

To ensure national energy security in an efficient manner Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the role of NNPC Limited in the event of a commercial discovery in frontier acreages?

To participate in the exploration and exploitation of petroleum resources Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the objectives of Chapter 2?

To promote the exploration and exploitation of petroleum resources Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the objectives of Chapter 1?

To provide for the legal, fiscal, and regulatory framework for the Nigerian petroleum industry Signup and view all the answers

Which one of these is NOT a responsibility of NNPC Limited as stated in the Petroleum Industry Act, 2021?

Maintaining the role of NNPC Signup and view all the answers

Which one of these is NOT a provision for the proposed incorporated joint venture companies (IJVC) as stated in the Petroleum Industry Act, 2021?

Subject to the provisions of the Fiscal Responsibility Act and the Public Procurement Act Signup and view all the answers

Which one of these is NOT a function of the Nigerian Upstream Petroleum Regulatory Commission (the Commission) as stated in the Petroleum Industry Act, 2021?

Maintaining the role of NNPC Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of Chapter 2?

To establish an orderly and competitive commercial environment within the petroleum industry Signup and view all the answers

According to the Petroleum Industry Act, 2021, who administers any acreage for upstream petroleum operations in Nigeria?

The Nigerian Upstream Petroleum Regulatory Commission Signup and view all the answers

According to the Petroleum Industry Act, 2021, what principles should the administration and management of petroleum resources and their derivatives be conducted in accordance with?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens when a significant petroleum discovery is made in a frontier basin?

The Commission recommends the reclassification of the basin Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the time frame for the Commission to give its final decision on a field development plan?

180 days Signup and view all the answers

Under the Petroleum Industry Act, 2021, what happens if the Commission fails to respond to a field development plan within 180 days?

The plan is automatically approved Signup and view all the answers

According to the Petroleum Industry Act, 2021, what type of support is required for a commitment made by a licensee under this section?

Financial support Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the basic unit of the national grid system used for the administration of upstream petroleum operations?

One square kilometer Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the maximum duration of a petroleum exploration licence?

3 years Signup and view all the answers

According to the Petroleum Industry Act, 2021, which of the following licences or leases allows the holder to win, work, carry away, and dispose of crude oil, condensates, and natural gas on an exclusive basis?

Petroleum mining lease Signup and view all the answers

According to the Petroleum Industry Act, 2021, who grants petroleum exploration licences?

The Commission Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the objective of Chapter 2?

To encourage and facilitate both local and foreign investment in the petroleum industry Signup and view all the answers

According to the Petroleum Industry Act, 2021, what principles should the administration and management of petroleum resources and their derivatives be conducted in accordance with?

Good governance, transparency, and sustainable development of Nigeria Signup and view all the answers

According to the Petroleum Industry Act, 2021, who holds the ownership of all shares in NNPC Limited at incorporation?

The Government of the Federation of Nigeria Signup and view all the answers

Which of the following bid parameters is NOT mentioned in the text as a basis for determining the winning bidder?

Minimum pre-qualification criteria Signup and view all the answers

How many international financial newspapers and national newspapers with wide coverage should the Commission publish the bidding procedure in?

Four Signup and view all the answers

What is the purpose of the model licence or model lease for each bid round?

To outline the minimum work programme Signup and view all the answers

What is one of the applicable sanctions in the event of failure to comply with the terms and conditions of the licence or lease?

Termination of the licence or lease Signup and view all the answers

According to the Petroleum Industry Act, 2021, who has the sole right and title over any acquired raw and interpreted data obtained by a licensee pursuant to a petroleum exploration licence?

The Commission Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the maximum duration of force majeure that can cause a delay in the fulfilment of any term or condition of a petroleum prospecting licence?

3 years Signup and view all the answers

According to the Petroleum Industry Act, 2021, who is entitled to grant a data use licence to a third party for acquired raw and interpreted data?

The licensee Signup and view all the answers

According to the Petroleum Industry Act, 2021, what activities do not require a petroleum exploration licence, as long as the results are not for sale or commercial gain?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the maximum duration of a petroleum prospecting licence for deep offshore and frontier acreages?

10 years Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the maximum area allowed for any deep offshore acreages in a petroleum prospecting licence?

1,000 square kilometres Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the minimum depth specified for the exploration well that a licensee must drill during the initial exploration period for frontier acreages?

Not specified Signup and view all the answers

According to the Petroleum Industry Act, 2021, how long is the retention period for a significant gas discovery or significant crude oil discovery declared by a licensee?

10 years Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if a licensee declares a discovery of no interest under subsection (3) or (8)?

The Commission may require the relinquishment of the parcels that cover the structure of the discovery. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what must a licensee provide to support a commitment under this section?

A bank guarantee, letter of credit, or performance bond. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the criteria for the Commission to approve a field development plan?

Technical standards, acceptable location and equipment, maximum economic recovery, health, safety, and environmental standards, and more. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if a licensee does not submit a field development plan and work commitment within the specified period?

The area containing the commercial discovery shall be relinquished. Signup and view all the answers

According to the Petroleum Industry Act, 2021, who has the authority to issue licenses for the establishment of refineries?

The Minister Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the criteria for granting a license for midstream or downstream petroleum operations?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is required for a license for midstream petroleum operations to be granted?

Conflict with an existing license Signup and view all the answers

According to the Petroleum Industry Act, 2021, what must an application for the grant, renewal, or extension of a license or permit include?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if a lessee fails to comply with the domestic gas delivery obligation as directed by the Commission?

The lessee will be fined and may have other sanctions imposed by the Commission. Signup and view all the answers

Under the Petroleum Industry Act, 2021, what is the condition for approval of the supply of natural gas for export projects?

The lessee must comply with the domestic gas delivery obligation. Signup and view all the answers

According to the Petroleum Industry Act, 2021, how are domestic gas delivery contracts entered into prior to the effective date treated?

They are counted towards the lessee's domestic gas delivery obligation. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the responsibilities of the Authority with respect to midstream and downstream petroleum operations?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the conditions that may be imposed on a licensee or permit holder?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, how long is the duration of a licence or permit?

Specified by regulations made under this Act Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the powers of the Authority in relation to licences or permits?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the objectives of setting tariffs for midstream and downstream petroleum operations?

To ensure the efficiency of the business Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the requirements for tariff methodologies for distribution licences?

To ensure efficient charges relating to petroleum product or natural gas supply Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the considerations in establishing a tariff methodology?

Submissions of stakeholders' consultation Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the purposes of conducting a stakeholders' consultation prior to establishing a tariff methodology?

To consult applicants, operators, consumers, and other stakeholders Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the procedure for the suspension or amendment of a condition in a licence or permit?

The Authority must give the holder of the licence or permit a draft copy of the proposed suspension or amendment. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if the Authority does not approve or refuse an application for the assignment or transfer of a licence or permit within the prescribed time?

The application is deemed to be approved. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the criteria the Authority considers when determining whether a licence or permit should be assigned or transferred?

The quantity of petroleum to be produced. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the role of the Governor of a State in relation to the Land Use Act?

To issue certificates of occupancy for land required for petroleum operations. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the grounds for revoking a licence or permit?

The holder interrupts midstream or downstream petroleum operations for more than 180 consecutive days Signup and view all the answers

According to the Petroleum Industry Act, 2021, what should the Authority do prior to revoking a licence or permit?

Serve a notice of default on the holder and give them 60 days to remedy the default Signup and view all the answers

According to the Petroleum Industry Act, 2021, when can a licence or permit be terminated?

When the holder fails to remedy a default within 60 days Signup and view all the answers

According to the Petroleum Industry Act, 2021, what should the holder of a licence or permit do if they intend to cease their activities?

Give the Authority a minimum of 12 months' notice in writing Signup and view all the answers

According to the Petroleum Industry Act, 2021, how are tariffs for transportation, distribution, and processing of petroleum determined?

They are determined based on the cost-reflective basis of transportation, distribution, and processing. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the applicable exchange rate for paying tariffs related to new gas transportation pipelines, gas distribution networks, and facilities requiring a gas processing license?

The applicable exchange rate is based on the Securities and Exchange Commission over the counter market rate. Signup and view all the answers

According to the Petroleum Industry Act, 2021, when do tariffs no longer include capital costs, after tax rate of return on equity, and recovery of interest and financing charges?

Tariffs no longer include these costs once the capital costs have been fully recovered. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what can the Authority approve in terms of tariffs for wholesale customers connecting with a pipeline to a transportation network or transportation pipeline?

The Authority can approve negotiated tariffs. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of conducting stakeholders' consultation on proposed amendments to tariff methodology or tariff?

To ensure transparency and gather input from relevant parties Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the responsibility of a licensee engaged in the sale of petroleum products to retail customers or subject to third party access or open access obligations?

To display current copy of applicable tariffs at its office Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the requirement for a licensee subject to tariff regulation by the Authority?

To propose tariffs for approval, impose tariffs in accordance with the approval, and publish the tariffs Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the activities that can be undertaken by the holder of a gas processing licence?

Operating a gas conditioning plant Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the general obligations of the holder of a gas processing licence?

To abstain from activities that may prevent, restrict or distort competition Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the conditions applicable to a gas processing licence?

The holder must comply with the general obligations stated in the Act Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the activities that can be undertaken by the holder of a bulk gas storage licence?

Operating a liquefied natural gas (LNG) plant Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the general obligations of a transportation pipeline owner?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the conditions applicable to a bulk gas storage licence?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the criteria for the Authority to approve a field development plan?

The effect of the licenced activities on the environment Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the powers of the Minister in relation to petroleum operations?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the conditions applicable to a gas transportation pipeline licence?

The licensee must mark, maintain, and secure the boundaries of the pipelines and associated infrastructure. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the activities authorized by a gas transportation network operator licence?

Balancing the inputs and off takes from the gas transportation network. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the general duties of a gas transportation network operator?

Cooperating with the Authority in determining possible third party access to the pipeline. Signup and view all the answers

According to the Petroleum Industry Act, 2021, how many gas transportation network operator licences can the Authority grant within a geographically defined area to a single network operator?

Only one Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the general obligations of a bulk gas storage licensee?

To establish and make available to the public the procedure and terms for obtaining third party access or throughput services on an open access basis. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the role of a bulk gas storage licensee in ensuring competitive gas supply?

To grant to third parties the right to use or have access to capacity within its facilities. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the requirements for environmental protection, management, and restoration for a licensee operating a gas processing plant?

To have regard to the effect of its licensed activities on the environment. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the obligations of a bulk gas storage licensee in relation to its facilities?

To construct, operate, and maintain its facilities in a safe, economical, reliable, and environmentally sustainable manner. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the general obligations imposed on the gas transportation network operator?

To establish and make available to the public the procedure, terms and conditions for obtaining and terminating access and interconnection services to the transportation network Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of operating a nomination and balancing mechanism in the gas transportation network?

To operate an efficient and economical gas transportation network for the safe and reliable conveyance of natural gas Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the powers granted to a gas transportation network operator by the Authority?

The power to request for and obtain information required to operate the nominations and balancing mechanism Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the conditions applicable to a gas transportation network operator license?

The payment of tariffs to non-operating owners of the pipelines Signup and view all the answers

According to the Petroleum Industry Act, 2021, what activities require an appropriate license from the Authority?

Operating a gas transportation network Signup and view all the answers

According to the Petroleum Industry Act, 2021, what activities require an appropriate license or permit from the Authority in downstream gas operations?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what actions can the Authority take if a person engages in activities without a license or permit?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the penalties for engaging in activities without a license or permit?

Both a and b Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of the public service levy?

To recover additional costs incurred by licensees Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the domestic gas demand requirement?

The total amount of marketable natural gas required for all wholesale customers Signup and view all the answers

According to the Petroleum Industry Act, 2021, who has the right to negotiate supply contracts directly with lessees or suppliers?

Each wholesale customer of the strategic sectors Signup and view all the answers

According to the Petroleum Industry Act, 2021, what activities are specified in a petroleum liquids transportation network operator licence?

Conveyance of petroleum liquids through the transportation network Signup and view all the answers

According to the Petroleum Industry Act, 2021, how many petroleum liquids transportation network operator licences can be granted for specified petroleum liquids within a geographically defined area to a single network operator?

Only one Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the general duties of a petroleum liquids transportation network operator?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the conditions for a company to own petroleum liquids in a petroleum liquids transportation pipeline?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what does a licensee or permit holder have rights of way for?

Laying, operation, and maintenance of petroleum liquids transportation pipelines, communication lines, power lines, and other similar lines Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of the network code for midstream petroleum liquids operations?

To govern the terms of access into facilities and infrastructure used in midstream petroleum liquids operations Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the conditions for the provision of open access in relation to petroleum liquids operations?

Access is granted on commercially viable terms based on a cost reflective pricing methodology Signup and view all the answers

According to the Petroleum Industry Act, 2021, who can mediate in disputes related to third party access to facilities and infrastructure used for midstream petroleum operations?

The Authority Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the role of the Authority in ensuring open access to facilities and infrastructure used in midstream petroleum operations?

To provide open access only to system users who become a party to and comply with the applicable network code Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of the levy charged by the Authority for the financing of national strategic stocks?

To cover the cost of storage and distribution of petroleum products Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the general obligations of a crude oil refiner in operating its facilities?

To comply with curtailment directives issued by the Authority Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the conditions applicable to a crude oil refining licence?

The licensee must maintain operating stocks in accordance with guidelines published by the Authority Signup and view all the answers

According to the Petroleum Industry Act, 2021, which of the following activities requires a licence for midstream petroleum liquids operations?

Establishing a facility for the bulk storage of petroleum liquids Signup and view all the answers

According to the Petroleum Industry Act, 2021, which of the following activities requires a licence or permit for downstream petroleum products operations?

Constructing or operating a facility for the distribution or sale of petroleum products to retail customers Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the maximum term of imprisonment for engaging in any of the activities set out in subsection (1), (2) or (3) without a licence or permit?

One year Signup and view all the answers

According to the Petroleum Industry Act, 2021, what action can the Authority take if a person engages in any of the activities set out in subsection (1), (2) or (3) without a licence or permit?

Impose penalties as prescribed by regulations under this Act Signup and view all the answers

According to the Petroleum Industry Act, 2021, what does a petroleum liquids transportation pipeline licence grant the holder the exclusive right to do?

Own and operate a transportation pipeline for the bulk transportation of petroleum liquids Signup and view all the answers

According to the Petroleum Industry Act, 2021, what must the holder of a petroleum liquids transportation pipeline licence establish and make available to the public?

Procedure for obtaining and terminating transmission and interconnection services, and method of response to the request for its service Signup and view all the answers

According to the Petroleum Industry Act, 2021, when can the holder of a petroleum liquids transportation pipeline licence shut down its pipeline?

In emergencies, in order to carry out maintenance, or in response to curtailment directives issued by the Authority Signup and view all the answers

According to the Petroleum Industry Act, 2021, what activities must the holder of a petroleum liquids transportation pipeline licence abstain from?

Activities that may prevent, restrict, or distort competition Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the general obligations of a crude oil refining licensee?

Conduct licenced activities safely and reliably in compliance with any law in force and prescribed health and safety related regulations. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the general duties of a bulk petroleum liquids storage licensee?

Procure, construct, install, operate, and maintain facilities in a safe, economical, reliable, and environmentally friendly manner. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the conditions for granting a bulk petroleum liquids storage licence?

The licensee must comply with any conditions precedent or other conditions as the Authority may prescribe by regulation. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the conditions for granting a bulk petroleum liquids storage licence?

The licensee must have regard to the effect of its licenced activities on the environment and comply with the requirements for environmental protection, management, and restoration. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the time frame within which the supplier must provide the Authority with information relating to a transaction for bulk sale of petroleum products?

Within 14 days Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for a supplier who knowingly provides false or misleading information with respect to the transaction for bulk sale of petroleum products?

Fine Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the responsibility of the Authority in relation to the bulk sale of petroleum products?

To monitor bulk sale transactions Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the maximum fine that the Authority can levy on a person who fails to comply with a 'cease and desist' order or a directive issued under subsection (1) of Section 215?

5% of the annual turnover of the company for the preceding year Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of the stakeholders' consultation prior to finalizing any regulations or amendments to regulations?

To gather feedback and input from lessees, licensees, permit holders, and other interested parties Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the considerations that the Authority may take into account when exercising its powers under Chapter 7?

The effect on the number of competitors in the market and their respective market shares Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of maintaining separation in management, accounting, or legal entities of licenced or permitted activities?

To prohibit the holder of the licence from directly holding licences of another type Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the maximum fine that can be levied by the Authority for anticompetitive behavior?

5% of the annual turnover of the company for the preceding year Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the main responsibility of the Authority in relation to market regulation?

To administer, monitor, and ensure compliance with the provisions of the Act Signup and view all the answers

According to the Petroleum Industry Act, 2021, what can the Authority do to prevent anticompetitive behavior in midstream and downstream petroleum operations?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what can the Authority do if there is or may be anticompetitive behavior and an abuse of market power?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what factors must be considered before approving an application or programme for decommissioning and abandonment?

The potential for reuse of a transportation pipeline Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the responsibility of the Commission or Authority regarding the decommissioning and abandonment obligations of an expired licence or lease holder?

Enforce compliance with the remaining obligations Signup and view all the answers

According to the Petroleum Industry Act, 2021, what requirements are imposed on operators regarding the database of installations, structures, and assets?

Operators must submit data in a prescribed manner and method Signup and view all the answers

According to the Petroleum Industry Act, 2021, what factors may the Authority consider when exercising its powers?

The number of competitors in the market and their market shares Signup and view all the answers

According to the Petroleum Industry Act, 2021, what actions can the Authority take if a person fails to comply with a notice or directive?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the common provisions for upstream, midstream, and downstream petroleum operations?

The suspension or amendment of a condition in a license or permit Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the maximum duration for the Commission or Authority to approve or reject an application?

90 days Signup and view all the answers

What conditions are required for a lease, licence, permit, or authorization registered under this Act to be considered conclusive evidence?

Both A and B Signup and view all the answers

According to the Petroleum Industry Act, 2021, how long is the period of time that a director or employee of the Commission or Authority must not make use of any acquired information for personal gain?

5 years Signup and view all the answers

According to the Petroleum Industry Act, 2021, what legislative provisions must be complied with for the storage, application, transportation, and other petroleum operations involving radioactive materials?

Nuclear Safety and Radiation Protection Act Signup and view all the answers

According to the Petroleum Industry Act, 2021, when must a person make representations to the Commission or Authority regarding a penalty?

Within 30 days after receiving the penalty notice Signup and view all the answers

According to the Petroleum Industry Act, 2021, what can the Authority or Commission do after considering representations made by a person regarding a penalty?

Both A and B Signup and view all the answers

According to the Petroleum Industry Act, 2021, what must a decommissioning and abandonment programme submitted by a licensee or lessee include?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what must be done with installations and structures on land during decommissioning and abandonment?

They must be completely removed and the environment restored Signup and view all the answers

According to the Petroleum Industry Act, 2021, what must the Commission or Authority do prior to issuing a regulation?

Hold a stakeholders' consultation Signup and view all the answers

According to the Petroleum Industry Act, 2021, when can the Commission or Authority issue a regulation without conducting a stakeholders' consultation?

In the national interest and exigency of the situation Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the maximum duration of a regulation issued without conducting a stakeholders' consultation?

One year Signup and view all the answers

According to the Petroleum Industry Act, 2021, what must the Commission or Authority do if the holder of a lease, licence, or permit is contravening or likely to contravene any of the conditions?

Publish a notice specifying the contravention Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the consequence for a holder of a lease, licence, or permit who fails to comply with an enforcement order under this section?

The Commission shall revoke the permit or recommend to the Minister to suspend or revoke the licence or lease. Signup and view all the answers

According to the Petroleum Industry Act, 2021, how can a dispute between a lessee, licensee, or permit holder and the Commission or the Authority be settled?

By the Federal High Court. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of the register of leases, licences, permits, and authorisations?

To provide information about the activities of the undertakings. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the requirement for exhibiting a license or permit issued under this Act?

It should be displayed on the premises of the licensee or permit holder. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for obstructing or assaulting any officer of the Commission or Authority in the exercise of their powers?

A fine or other sanctions prescribed in regulation Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for engaging in petroleum operations without a valid lease, licence, or permit?

A fine prescribed in regulations Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for furnishing false or incomplete information to the Commission or Authority?

A fine or other sanctions prescribed in regulation Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for refusing to furnish, return, or supply information to the Commission or Authority?

Discontinuation of operations of the affected infrastructure, facility, or equipment Signup and view all the answers

According to the Petroleum Industry Act, 2021, who has responsibility over all environmental matters in respect of upstream petroleum operations?

The Commission Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the base terms that are applicable for fiscal provisions?

Other fiscal features Signup and view all the answers

According to the Petroleum Industry Act, 2021, who may make regulations for the carrying out of the provisions related to hydrocarbon tax and companies income tax?

The Minister of Finance Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the relationship between the official selling prices at main international trading centers and Nigerian crude oil streams or gas of comparable quality and specific gravity?

No relationship Signup and view all the answers

Which one of the following is true about the penalties for committing an offense under the Petroleum Industry Act, 2021?

The penalty can either be a fine equivalent to 200% of the sum in question or imprisonment for a term not exceeding three years, or both. Signup and view all the answers

Which one of the following is true about the application of Companies Income Tax to petroleum operations under the Petroleum Industry Act, 2021?

Companies involved in petroleum operations are subject to both Companies Income Tax and the provisions of the Petroleum Industry Act, 2021. Signup and view all the answers

Which one of the following is true about the determination of crude oil and gas revenue for a company under the Petroleum Industry Act, 2021?

The crude oil and gas revenue is based on the value of all chargeable oil or gas disposed by the company, adjusted to the measurement points. Signup and view all the answers

Which one of these is a requirement for companies engaged in domestic midstream petroleum operations and downstream gas operations, according to the Petroleum Industry Act, 2021?

They can consolidate their capital investment with upstream petroleum operations for tax purposes. Signup and view all the answers

Which one of these is NOT subject to companies income tax, according to the Petroleum Industry Act, 2021?

Hydrocarbon tax. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the rate of annual allowance for acquisition costs of petroleum rights?

20% Signup and view all the answers

According to the Petroleum Industry Act, 2021, which assets are eligible for capital allowances in accordance with the Fifth Schedule to this Act?

All of the above. Signup and view all the answers

According to the Companies Income Tax Act, which of the following expenditures is NOT eligible for deduction?

Expenditure for the purchase of geological data Signup and view all the answers

What is the penalty for late filing of companies income tax returns for companies involved in upstream petroleum operations?

N10,000,000 on the first day of failure and N2,000,000 for each subsequent day Signup and view all the answers

What interest rate is applied to the tax due from a company involved in upstream petroleum operations for Naira remittances?

Prevailing NIBOR plus 10% Signup and view all the answers

What additional amount of chargeable tax is payable by a company involved in upstream petroleum operations if the amount of chargeable tax for crude oil or gas is less than a certain amount?

The difference between the two amounts Signup and view all the answers

Which entity is responsible for conducting a licensing round to ensure that the Government receives the full market value for each block?

The Commission Signup and view all the answers

Which of the following is NOT listed as a fiscal provision that is exempt from fiscal stabilisation clauses under the Act?

Royalties Signup and view all the answers

Under which schedule of the Act are royalties for petroleum production specified?

Seventh Schedule Signup and view all the answers

What is the time limit for commencing an action, claim, proceeding, or suit against the Commission or the Authority for any act done under the Act?

Three months Signup and view all the answers

According to the Petroleum Industry Act, 2021, what does the Act deem to be exported from Nigeria by a particular company?

Any crude oil or gas exported by another company Signup and view all the answers

According to the Petroleum Industry Act, 2021, when do the provisions of the Act not apply to holders of an oil prospecting licence or oil mining lease?

When they enter into a conversion contract Signup and view all the answers

According to the Petroleum Industry Act, 2021, what should the fair and reasonable relationship of the price of Nigerian crude oil or gas bear to international prices?

It should be the same as international prices Signup and view all the answers

According to the Petroleum Industry Act, 2021, which of the following fiscal provisions are exempt from the fiscal stabilisation clauses in production sharing contracts?

Taxes related to petroleum production Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the basis for calculating royalties on petroleum production?

The Seventh Schedule to the Act Signup and view all the answers

According to the Petroleum Industry Act, 2021, which Act applies to legal proceedings against the Commission or the Authority?

The Public Officers Protection Act Signup and view all the answers

According to the Petroleum Industry Act, 2021, how long is the pre-action notice period before commencing a suit against the Commission or Authority?

One month Signup and view all the answers

According to the Petroleum Industry Act, 2021, when can an order for execution or attachment of any property of the Commission or Authority be issued?

After three months notice is given Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens to any enactment or law that is inconsistent with the provisions of this Act?

It is repealed Signup and view all the answers

According to the Petroleum Industry Act, 2021, which of the following enactments and regulations are repealed from the effective date of this Act?

Petroleum Profit Tax Act Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the cost oil limit for renewed leases renegotiated production sharing contracts?

Not more than 60% of the total oil production Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the minimum haircut on disputed amount for renewed leases renegotiated production sharing contracts?

55% Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the basis for determining the profit oil share based on cumulative production for renewed leases renegotiated production sharing contracts?

The production from the total production of all production areas selected under section 93 of the Act Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the conversion date for the purpose of the interpretation of section 93 of the Act for renegotiated production sharing contracts?

The signing date of such renegotiated production sharing contracts Signup and view all the answers

According to the Petroleum Industry Act, 2021, which entities are subject to the same obligations and liabilities as the Authority?

Petroleum Pricing and Product Regulatory Agency and Petroleum Equalisation Fund Signup and view all the answers

According to the Petroleum Industry Act, 2021, which employees shall be transferred to the Commission on terms no less favorable to those in effect immediately prior to the transfer?

Employees in the Petroleum Inspectorate Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of the inter-agency transfer of staff within 24 months of the effective date?

To transfer staff to the Commission, the Authority, or NNPC Limited based on skills and competence requirements Signup and view all the answers

According to the Petroleum Industry Act, 2021, what must every settlor do with existing host communities development projects or schemes?

Transfer them to a host communities development trust Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens to any capital allowances existing at the effective date for related oil mining leases?

They are carried over to the selected petroleum mining leases. Signup and view all the answers

According to the Petroleum Industry Act, 2021, when do the provisions of Chapter 4, Parts II and X apply?

Upon the commencement of the first accounting period following the effective date. Signup and view all the answers

According to the Petroleum Industry Act, 2021, who may request the services of NNPC Limited as supplier of last resort for the adequate supply and distribution of premium motor spirit (PMS)?

The Government on behalf of the Federation. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the responsibility of the Minister within 60 days of the effective date of the Act?

To set forward a clear transition plan to prevent disruptions of the industry operations. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens to the remaining amount in the Petroleum Equalisation Fund after the completion of certain transactions?

It is transferred to the Midstream and Downstream Gas Infrastructure Fund Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens to any Act, subsidiary legislation, or regulation made under any principal legislation repealed or amended by this Act?

They continue in force until revoked or replaced by an amendment to this Act or by subsidiary legislation made under this Act Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens to oil prospecting licences or oil mining leases granted under the Petroleum Act that are subsisting as at the effective date of this Act?

They continue to have effect, subject to certain terms and conditions Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens to the outstanding amounts payable to oil marketing companies if the Petroleum Equalisation Fund is in a deficit?

The proration shall be zero and oil marketing companies shall have no claim to further outstanding amounts Signup and view all the answers

According to the Petroleum Industry Act, 2021, which laws shall remain in operation until they are repealed or revoked?

Petroleum Act, Cap. P10, Laws of the Federation of Nigeria, 2004 Signup and view all the answers

According to the Petroleum Industry Act, 2021, which parties are entitled to continue gas sales agreements unaltered until the termination of such agreements?

Parties to gas sales agreements related to domestic sales or exports entered into prior to the effective date Signup and view all the answers

According to the Petroleum Industry Act, 2021, which entity is vested with all assets, funds, resources, and other movable and immovable properties that were held by the Petroleum Inspectorate or the Department of Petroleum Resources before the effective date?

The Commission Signup and view all the answers

According to the Petroleum Industry Act, 2021, which entity is vested with all assets, funds, resources, and other movable and immovable properties that were held by the Petroleum Pricing and Product Regulatory Agency, the Petroleum Equalisation Fund (Management Board), and the Department of Petroleum Resources before the effective date?

The Authority Signup and view all the answers

Which fiscal provisions listed in the Petroleum Industry Act, 2021 are not subject to the fiscal stabilisation clauses in production sharing contracts or other contracts entered into after the commencement of the Act?

Generally applicable taxes Signup and view all the answers

According to the Petroleum Industry Act, 2021, where are the royalties for petroleum production specified?

Chapter 6—Royalty Signup and view all the answers

According to the Petroleum Industry Act, 2021, which Act applies in relation to any suit instituted against the Commission or the Authority, their Chief Executives, commissioners, directors, officers, or employees?

Public Officers Protection Act Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the maximum cost oil limit for renewed leases renegotiated production sharing contracts?

70% of the total oil production Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the minimum haircut on disputed amount for renewed leases renegotiated production sharing contracts?

25% Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the conversion date for the purpose of interpreting section 93 of the Act in relation to renegotiated production sharing contracts?

The signing date of the renegotiated production sharing contracts Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the royalty rate per field for the period of five years from the date of commencement of the field production for oil prospecting licences and oil mining leases awarded to indigenous Nigerian companies on a sole risk basis?

0% Signup and view all the answers

Under the Petroleum Industry Act, 2021, how long is the pre-action notice period before commencing a suit against the Commission or Authority?

One month Signup and view all the answers

According to the Petroleum Industry Act, 2021, when should an order for execution or attachment of any property of the Commission or Authority be issued?

After three months' notice Signup and view all the answers

According to the Petroleum Industry Act, 2021, which enactments and regulations are repealed from the effective date of the Act?

Motor Spirits (Returns) Act Signup and view all the answers

According to the Petroleum Industry Act, 2021, who is in charge of the collection of net surplus revenues from oil marketing companies with respect to the Petroleum Equalisation Fund?

The Authority Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens to any remaining amount in the Petroleum Equalisation Fund after the completion of certain transactions?

It is transferred to the Midstream and Downstream Gas Infrastructure Fund Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if the Petroleum Equalisation Fund is in a deficit?

The proration of payments shall be zero Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens to Act, subsidiary legislation, or regulation made under any principal legislation repealed or amended by this Act?

They continue in force until revoked or replaced Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens to oil prospecting licences or oil mining leases granted under the Petroleum Act?

They continue to have effect Signup and view all the answers

According to the Petroleum Industry Act, 2021, which laws shall remain in operation until they are repealed or revoked?

Petroleum Act, Cap. P10, Laws of the Federation of Nigeria, 2004 Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens to gas sales agreements entered into prior to the effective date?

They continue unaltered until the termination of such agreements Signup and view all the answers

According to the Petroleum Industry Act, 2021, which entity is vested with all assets, funds, resources, and other properties held by the Petroleum Inspectorate or the Department of Petroleum Resources?

The Commission Signup and view all the answers

According to the Petroleum Industry Act, 2021, which entity is vested with all assets, funds, resources, and other properties held by the Petroleum Pricing and Product Regulatory Agency, the Petroleum Equalisation Fund (Management Board), and the Department of Petroleum Resources?

The Authority Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens to the rules, orders, notices, or other subsidiary legislation made under the Petroleum Act, the Petroleum Profits Tax Act, and the Deep Offshore and Inland Basin Production Sharing Contract Act?

They continue to have effect as if made under the corresponding provisions of this Act. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens to the references in any other enactment to provisions of the previous acts?

They are replaced with references to the corresponding provisions of this Act. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens to the capital allowances related to upstream petroleum operations at the effective date for selected petroleum mining leases?

They are carried over to the selected petroleum mining leases. Signup and view all the answers

According to the Petroleum Industry Act, 2021, when do the provisions of Chapter 4, Parts II and X of the Act apply?

After the first accounting period following the effective date. Signup and view all the answers

According to the Petroleum Industry Act, 2021, which divisions' employees shall become employees of the Authority on terms no less favorable to those in effect immediately prior to the effective date?

All of the above Signup and view all the answers

As part of the implementation process of sections 313 and 57 of the Petroleum Industry Act, 2021, which institutions' staff may be transferred to the Commission, the Authority, or NNPC Limited based on skills and competence requirements?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what must every settlor do with their existing host communities development projects or schemes?

Transfer them to a host communities development trust Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens to any financial contribution made by a settlor to ongoing host communities development projects or schemes from the effective date until 12 months after the effective date?

It is considered as a contribution by the holder or holder nominee Signup and view all the answers

Which one of the following is a requirement for the licensee or lessee under the rights of pre-emption in the Petroleum Industry Act, 2021?

Deliver all petroleum or petroleum products purchases by the Minister Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if a vessel carrying petroleum or petroleum products is detained on demurrage at the port of loading?

The licensee or lessee pays the amount due for demurrage Signup and view all the answers

According to the Petroleum Industry Act, 2021, how are disputes regarding delays in vessel loading settled?

By agreement between the Minister and the licensee or lessee Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of the Board of directors of an Incorporated Joint Venture Company (IJVC)?

To guide decisions based on commercial and technical considerations Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the initial composition of the share capital of an IJVC?

Ordinary shares only Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the right of direct shareholders in an IJVC regarding the purchase of petroleum and petroleum derivatives?

They have the right to purchase at market prices Signup and view all the answers

According to the Petroleum Industry Act, 2021, how should dividends and other distributions be paid by an IJVC?

Proportionally based on shareholding interest Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of the incorporated joint venture companies (IJVCs)?

To carry out upstream, midstream, and downstream petroleum operations Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the role of NNPC Limited in the creation of incorporated joint venture companies (IJVCs)?

To enter into negotiations with other parties to existing joint operating agreements Signup and view all the answers

According to the Petroleum Industry Act, 2021, what information about the incorporated joint venture companies (IJVCs) must be made public?

Reasonable details relating to its incorporation and constitutional documents Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the special provisions that apply to incorporated joint venture companies (IJVCs)?

No IJVC shall be subject to the provisions of the Fiscal Responsibility Act and the Public Procurement Act Signup and view all the answers

According to the Petroleum Industry Act, 2021, how is the domestic base price at the marketable gas delivery point determined?

It is determined based on regulations incorporating various principles. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the criteria for allocation of domestic gas delivery obligations?

All associated gas from producing fields shall be eligible for designation as tier one gas for the domestic gas market. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the pricing formula for gas price for the gas based industries?

CP = NRP * (1 + EPF) Signup and view all the answers

According to the Petroleum Industry Act, 2021, what options do the shareholders of an IJVC have when the cash flow is insufficient to finance the work program?

They can contribute equity in exchange for the issuance of ordinary shares. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the maximum duration of a petroleum exploration licence?

15 years Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for engaging in petroleum operations without a valid lease, licence, or permit?

Imprisonment for 10 years Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the responsibility of the Minister within 60 days of the effective date of the Act?

Create a transition plan Signup and view all the answers

According to the Petroleum Industry Act, 2021, what does 'downstream petroleum operations' refer to?

Activities related to the distribution and supply of petroleum products Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'domestic gas demand requirement'?

The volume of natural gas required for strategic sectors within the domestic economy Signup and view all the answers

According to the Petroleum Industry Act, 2021, what does 'exploration well' mean?

A well aimed at discovering petroleum in a separate field Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'effective date'?

The date on which the Act comes into force Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'crude oil refiner'?

A person who holds a license to refine crude oil Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'deep offshore'?

Any area with a water depth in excess of 200 meters offshore of Nigeria Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'decommissioning and abandonment'?

The process of restoring the environment after removal of installations, plants, and structures Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'distribution pipeline'?

A pipeline for conveying natural gas or petroleum products to customers Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'chargeable oil'?

Crude oil, condensate or natural gas liquids produced upstream of the measurement point Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'common carrier'?

A transportation pipeline which is operated on an open access basis Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'condensate'?

A portion of natural gas that is in the liquid phase at surface pressure and temperature Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'connection agreement'?

An agreement setting out the terms on which individual, physical connections to the transportation pipeline, transportation network or gas distribution network will be affected Signup and view all the answers

According to the Petroleum Industry Act, 2021, what does the term 'gas distributor' refer to?

The holder of a gas distribution licence Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'gas transportation network'?

A set of interconnected gas transportation pipelines in a particular geographical area Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the meaning of 'host communities'?

Communities situated in or appurtenant to the area of operation of a settlor Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are 'good international petroleum industry practices'?

Uses and practices that are generally accepted in the international petroleum industry Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'accounting date'?

The date on which a company usually prepares its accounting statement Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'accounting period' for a company engaged in upstream petroleum operations?

Any period of less than a year commencing on 1st January of any year and ending on the date in the same year when the company ceases to be engaged in petroleum operations Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'affiliate'?

The relationship that exists between two persons when one controls or is controlled by an entity which controls the other person Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'associated gas'?

Natural gas, commonly known as gas-cap gas, which overlies and is in contact with crude oil in a reservoir Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'frontier basin'?

An undeveloped area where hydrocarbon exploration activities have not been carried out or previous commercial discoveries of oil and gas have not been made Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'fiscal oil price'?

The price established in paragraphs 8 (1) and (2) of the Seventh Schedule to this Act Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'force majeure'?

Delays or inability to perform any obligations under this Act (other than a payment obligation), due to any event beyond the reasonable control of a person Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'frontier exploration fund'?

The fund established in section 9 (3) of this Act Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'liquefied petroleum gas' or 'LPG'?

Mixtures of propane and butane and small concentrations of other gases which are gaseous under room temperature and pressure but are liquefied by applying pressure. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the meaning of 'large-scale gas utilisation industries'?

Large-scale industries that use natural gas as a feedstock such as gas-to-liquid plants, petrochemical industries and fertiliser plants. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'liquefied natural gas' or 'LNG'?

Natural gas in liquid form through condensation at close to atmospheric pressure and at a temperature of approximately minus 162 degrees celsius. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'local distribution zone'?

An authorised area as specified in regulations, within which one gas distributor may operate. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of a 'marketable natural gas delivery point'?

A point where marketable natural gas is made available to customers downstream of a facility in which it has been processed Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of a 'measurement point'?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'midstream and downstream gas infrastructure fund'?

A fund established for the construction and operation of natural gas transport or transmission pipelines Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'midstream and downstream gas operations'?

Activities downstream of the measurement points of petroleum mining leases related to the construction and operation of gas processing facilities Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the time limit for making a claim for the repayment of any hydrocarbon tax overpaid?

Within 6 years after the end of the accounting period Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if a tax claimed based on Section 296 is proven not to be due?

The applicant receives a refund with a penalty at the prevailing LIBOR rate plus 10% Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for defaults under Section 297?

A penalty of 10% of the tax owed Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the option available for strategic projects in the upstream petroleum operations that seek to produce oil and natural gas to be processed or refined to finished petroleum products, and supplied in wholesale solely to the domestic market?

They can choose to be established as either an integrated strategic project (ISP) or a non-integrated strategic project (NISP). Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the requirement for companies engaged in petroleum operations in terms of paying companies income tax?

Companies engaged in petroleum operations are required to pay companies income tax. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the reference for the general requirement of companies engaged in petroleum operations to pay companies income tax?

Cap. C21, LFN, 2004 Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for failing to comply with the provisions of this Chapter or any regulation made under this Act for which no other penalty is specifically provided?

An administrative penalty of N10,000,000 Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for making up any incorrect accounts by omitting or understating any profits or overstating any losses of which a person is required to make up accounts?

An administrative penalty of N15,000,000 or 1% of the amount of tax which has been undercharged Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for giving false or misleading information in relation to any matter or thing affecting a person's liability to hydrocarbon tax?

An administrative penalty of the sum of N15,000,000 or 1% of the amount of tax which has been undercharged Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for failing to comply with the requirements of a notice served under this Chapter or failing to attend in answer to a notice or summons served under this Chapter?

Commits an offence Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the maximum fine for a person who knowingly makes any false statement or false representation in relation to tax?

N15,000,000 or 1% of the amount of tax Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the maximum fine for a person who demands from any person an amount in excess of the authorised assessment of the tax payable?

Fine equivalent to 200% of the sum in question Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the administrative penalty for a person who knowingly makes any false statement or false representation in relation to tax?

N15,000,000 or 1% of the amount of hydrocarbon tax Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the maximum fine for a person who defrauds any person, embezzles any money or otherwise uses his position to deal wrongfully with the Service or any other individual?

Fine equivalent to 200% of the sum in question Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the maximum fine for a person found guilty of an offense under this Chapter or in a regulation made under this Act for which no other penalty is specifically provided?

N20,000,000 Signup and view all the answers

According to the Petroleum Industry Act, 2021, who has the authority to prescribe the sum of the fine for an offense under this Chapter or in a regulation made under this Act for which no other penalty is specifically provided?

The Minister of Finance Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if an offense under this Chapter or in a regulation made under this Act continues beyond a specified period?

The person will be liable to a higher fine Signup and view all the answers

According to the Petroleum Industry Act, 2021, when does an assessment as regards the amount of the hydrocarbon tax become final and conclusive?

When the amount of the tax is determined on objection or revision under section 285 (6) of this Act or on appeal Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if the full amount of the tax in respect of the final and conclusive assessment is not paid within the appropriate period prescribed in the Act?

The provisions relating to the recovery of tax and any penalty under section 292 of this Act apply Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if an assessment has become final and conclusive and there is an overpayment of tax?

The overpaid tax is repaid or treated as credit in favor of the assessed party Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the time limit for payment of hydrocarbon tax outstanding under an assessment after a notice of objection or appeal has been filed?

One month from the date of service Signup and view all the answers

According to the Petroleum Industry Act, 2021, how can hydrocarbon tax be recovered if it is not paid within one month of the notification of the tax payable?

Through a set-off against other tax liabilities Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the time limit for making a claim for the repayment of overpaid hydrocarbon tax?

Six years after the end of the accounting period Signup and view all the answers

According to the Petroleum Industry Act, 2021, what penalty can be imposed on a person who fails to comply with the provisions of the Act or regulations, without any other penalty specifically provided?

N10,000,000 Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for nonpayment of hydrocarbon tax within the appropriate time limit?

A 10% penalty of the tax payable Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the interest rate on unpaid hydrocarbon tax?

10% interest rate Signup and view all the answers

According to the Petroleum Industry Act, 2021, when can the Service enforce payment of the tax which is not in dispute?

After one month from the date of service of the demand notice Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if payment is not made within one month from the date of the service of the demand notice?

The Service may proceed to enforce payment under the Act Signup and view all the answers

According to the provisions of subsection (1), what is the penalty for a person found guilty of an offence under this Chapter or in a regulation made under this Act?

A fine of N20,000,000 Signup and view all the answers

What is the maximum penalty that the Minister of Finance can prescribe for an offence under this Chapter or in a regulation made under this Act?

N200,000,000 Signup and view all the answers

In addition to a fine, what other penalty can be imposed on a person found guilty of an offence under this Chapter or in a regulation made under this Act?

Revocation of license Signup and view all the answers

According to the Petroleum Industry Act, 2021, when is an assessment of the hydrocarbon tax considered final and conclusive?

When the assessment has been made, agreed to, revised or determined on appeal Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if the full amount of the tax in respect of a final and conclusive assessment is not paid within the appropriate period?

The provisions relating to the recovery of tax and any penalty apply Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens to any tax overpaid after an assessment has become final and conclusive?

It is treated as credit in favor of the assessed party Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if hydrocarbon tax is not paid within the prescribed time limit?

The Service may proceed to enforce payment under this Act Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for nonpayment of hydrocarbon tax?

A sum equal to 5% of the tax payable is added Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the due date for the final instalment of hydrocarbon tax?

On or before the due date of filing of the self-assessment of tax Signup and view all the answers

According to the Petroleum Industry Act, 2021, how are monthly instalments of hydrocarbon tax calculated?

Based on the amount of tax already paid for the accounting period Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the time limit for making a claim for the repayment of any overpaid hydrocarbon tax?

Within six years after the end of the accounting period Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for a person who fails to comply with the provisions of the Act or any regulation made under it, for which no other penalty is specifically provided?

N10,000,000 administrative penalty Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for obstructing or assaulting any officer of the Commission or Authority in the exercise of their powers?

N10,000,000 administrative penalty and N2,000,000 for each day the obstruction or assault continues Signup and view all the answers

According to the Petroleum Industry Act, 2021, how can hydrocarbon tax be recovered if it is not paid within one month of the notification of the tax payable?

Through legal action in a court of competent jurisdiction Signup and view all the answers

Which of the following is true about the transfer of assets by a company engaged in petroleum operations to avoid tax payment?

The company may be sued for and recover the tax from the person who received the assets. Signup and view all the answers

Who is responsible for the payment of companies income tax or hydrocarbon tax on behalf of a company?

Every person answerable under this Act Signup and view all the answers

What particulars does a company engaged in upstream petroleum operations need to prepare for the purpose of determining hydrocarbon tax?

Statement of accounts, computations of actual profit or loss, schedule of residues and assets disposed of, and allowances under the Fifth Schedule Signup and view all the answers

Which one of these is a condition for a company engaged in upstream petroleum operations to consolidate costs for the purpose of companies income tax?

The company must hold licences and leases in accordance with section 267 of the Act Signup and view all the answers

Which one of these is NOT an offence under the Petroleum Industry Act, 2021?

Failure to comply with a 'cease and desist' order or a directive issued by the Authority Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the consequence of a company selling or transferring its trade or business to another company?

The acquiring company is not allowed to offset any losses incurred by the selling company against its assessable profits Signup and view all the answers

According to the Petroleum Industry Act, 2021, who is subject to hydrocarbon tax and companies income tax on the profits from upstream petroleum operations?

Companies engaged in upstream petroleum operations Signup and view all the answers

According to the Petroleum Industry Act, 2021, how are taxes charged and assessed on companies engaged in upstream petroleum operations?

Based on their equity interest in the partnership or joint venture Signup and view all the answers

According to the Petroleum Industry Act, 2021, what can the Service do in relation to the tax charged or assessed upon companies engaged in upstream petroleum operations?

Make regulations for the ascertainment of tax Signup and view all the answers

According to the Petroleum Industry Act, 2021, what can regulations made under subsection (5) provide for?

The computation of any tax as if the operations were carried on by one company Signup and view all the answers

Which currency are all hydrocarbon tax computations made in under this Act?

US Dollars Signup and view all the answers

To which tribunal can a company or taxpayer appeal if they do not agree with an assessment made under section 285 (6) of this Act?

Tax Appeal Tribunal Signup and view all the answers

Under which Act is the Tax Appeal Tribunal established?

Federal Inland Revenue Service (Establishment) Act Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the consequence for a liquidator or receiver if they distribute assets of the company without making provision for the payment of taxes?

They may be sued for and recovered from for the unpaid taxes Signup and view all the answers

According to the Petroleum Industry Act, 2021, who can be held liable for the payment of companies income tax or hydrocarbon tax on behalf of a company?

Any person answerable under this Act Signup and view all the answers

According to the Petroleum Industry Act, 2021, how can companies engaged in petroleum operations avoid payment of companies income tax or hydrocarbon tax?

By transferring a substantial part of its assets without paying the taxes Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the time limit for making an application to review and revise an assessment?

30 days from the date of service of the notice of assessment Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if a person in whose name an assessment was made disputes the assessment?

The person may apply to the Service by notice of objection in writing Signup and view all the answers

According to the Petroleum Industry Act, 2021, what can the Service require after receipt of a notice of objection?

The person giving the notice of objection to furnish necessary particulars Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if a person assessed agrees with the Service as to the amount of tax liable to be assessed?

The assessment shall be amended accordingly Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for late filing of returns by a company engaged in upstream petroleum operations related to crude oil?

N10,000,000 on the first day the failure occurs and N2,000,000 for each and every subsequent day in which the failure continues Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of the estimated tax return submitted by a company engaged in upstream petroleum operations related to crude oil?

To calculate the estimated tax for the accounting period Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if a company fails to provide the estimates required under subsections (1) and (2) of section 280?

The Service determines the estimates on a best of judgment basis and imposes them on the company Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for furnishing false or incomplete information to the Service?

N1,000,000 Signup and view all the answers

According to the Petroleum Industry Act, 2021, when can the Service estimate and make an assessment of the amount of hydrocarbon tax to be paid by a company?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, within what time period can the Service assess a company with tax for any accounting period if it discovers that tax has not been charged or has been charged at an amount less than that which ought to have been assessed?

Within six years after the expiration of that accounting period Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of making a revision under subsection (1) of section 283?

To revise the tax charged or to be charged for subsequent accounting periods Signup and view all the answers

According to the Petroleum Industry Act, 2021, when can the Service assess a company on an amount necessary for the purpose of recovering any loss of tax attributable to fraud, willful default, or neglect?

At any time and as often as may be necessary Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for late filing of accounts by a company engaged in upstream petroleum operations related to crude oil?

N10,000,000 on the first day the failure occurs and N2,000,000 for each and every subsequent day in which the failure continues Signup and view all the answers

According to the Petroleum Industry Act, 2021, when must a company engaged in upstream petroleum operations related to crude oil deliver its accounts and particulars to the Service?

Within five months after the expiration of the accounting period or within five months after the effective date of the Act, whichever is later Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the time limit for filing audited accounts and returns by a company yet to commence bulk sales or disposal of chargeable oil?

Within 18 months from the date of its incorporation, in the case of a newly incorporated company Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the particulars that a company engaged in upstream petroleum operations related to crude oil must prepare for the purpose of determining hydrocarbon tax?

A schedule showing the residues at the end of the accounting period in respect of its assets Signup and view all the answers

How should the apportionment of profits and expenses be determined if no jointly executed agreement is made available?

The apportionment will be in line with the equity interest of the parties Signup and view all the answers

What will happen if the Commission advises the Service the approved equity interest of the parties?

The parties must accept the advice Signup and view all the answers

Who will have access to the jointly executed agreement?

The Commission and the Service Signup and view all the answers

According to the Petroleum Industry Act, 2021, how does the Commission establish the fiscal oil price for a crude oil stream when there is no established price?

It is based on the official selling prices at main international trading centers for crude oil of comparable quality and gravity. Signup and view all the answers

According to the Petroleum Industry Act, 2021, when is a crude oil deemed to be exported from Nigeria by a particular company?

When it is chargeable oil for a particular company Signup and view all the answers

According to the Petroleum Industry Act, 2021, when can the Service disregard a disposition or make adjustments to counteract the reduction of liability to tax?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if a company fails to fulfill the guarantee or conditions of a sale?

The Service may revoke the direction and make additional assessments or repayment of tax as necessary. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if a company makes a subsequent disposal of assets acquired within three years of acquisition?

Any concession enjoyed under this subsection shall be rescinded. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what conditions must be met for a trade or business sale or transfer to be dealt with under section 266(1)(c)?

The companies involved are not connected and none has control over the other. Signup and view all the answers

According to the Petroleum Industry Act, 2021, when does the accounting period of the company acquiring a trade or business commence?

On the date of the sale or transfer or on a date within the same calendar month as elected by the company. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what does the expression 'disposition' include?

Any trust, grant, covenant, agreement or arrangement Signup and view all the answers

According to the Petroleum Industry Act, 2021, when are transactions deemed to be artificial or fictitious?

When they occur between persons with control over each other or controlled by some other person, and not made on arm's length terms Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the right of appeal for a company in respect of which any direction is made under this section?

The right of appeal as though the direction was an assessment under Part III of the Act Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens to pre-production capital expenditure incurred by a company that has not yet commenced production and sale or disposal of chargeable oil?

It is deemed to have been incurred and can be amortized upon commencement of production and sale or disposal of chargeable oil Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the chargeable tax for the profit from crude oil for petroleum mining leases selected under section 93 (6) (b) and (7) (b) of this Act with respect to onshore and shallow water areas?

30% Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the chargeable tax for the profit from crude oil for onshore and shallow water and for petroleum prospecting licences selected under section 93 (6) (a) and (7) (a) of this Act?

15% Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the additional amount of chargeable tax payable by a company if the calculated chargeable tax is less than a certain amount?

The difference between the calculated chargeable tax and the specified amount Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the formula for calculating the chargeable tax for crude oil for a company in a given accounting period?

The chargeable tax = (number of barrels of crude oil) x (fiscal oil price per barrel) Signup and view all the answers

According to the Petroleum Industry Act, 2021, how does the Commission establish the fiscal oil price for a crude oil stream when there is no established price?

The fiscal oil price is established based on the official selling prices at main international trading centers for crude oil of comparable quality and gravity Signup and view all the answers

According to the Petroleum Industry Act, 2021, what transactions are deemed to be artificial or fictitious for the purpose of ascertaining chargeable profits and consolidation for tax purposes?

Transactions between independent persons engaged in the same or similar activities dealing with one another at arm’s length Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for failing to comply with the requirements of a notice served under this Chapter or failing to attend in answer to a notice or summons served under this Chapter?

A fine not exceeding 20 million Naira Signup and view all the answers

Which one of these is a requirement for companies engaged in upstream petroleum operations, in terms of paying companies income tax?

They must retain a portion of their profits to pay the tax Signup and view all the answers

What can happen if a company engaged in petroleum operations transfers a substantial part of its assets to another person to avoid paying companies income tax or hydrocarbon tax?

The tax can be sued for and recovered from that person Signup and view all the answers

What must a company engaged in upstream petroleum operations prepare for each accounting period to determine hydrocarbon tax?

A statement of accounts of its profits or losses Signup and view all the answers

According to the Petroleum Industry Act, 2021, when will a person be subject to hydrocarbon tax and companies income tax on profits from upstream petroleum operations?

When the person has benefitted from any profits Signup and view all the answers

According to the Petroleum Industry Act, 2021, how will tax be charged and assessed on companies engaged in upstream petroleum operations in partnership, joint venture, or concert?

In accordance with subsection (4) Signup and view all the answers

According to the Petroleum Industry Act, 2021, what may regulations made under subsection (5) provide for?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, who may be assessed and charged to tax in the name of the liquidator or receiver of a company being wound up?

The company's creditors Signup and view all the answers

Which one of these is NOT a provision for the application of companies income tax to upstream petroleum operations under the Petroleum Industry Act, 2021?

A company can consolidate its losses and revenues across all assets in which it holds licences and leases. Signup and view all the answers

According to the Petroleum Industry Act, 2021, which one of these is an offence committed by any person, other than a company, who engages in upstream petroleum operations with a view to sharing the profits arising from the operations?

Engaging in upstream petroleum operations without a license. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the provision for a company in existence prior to the commencement of the Act that sells or transfers its trade or business to another company?

The selling company cannot offset any loss incurred against the assessable profit of the acquiring company. Signup and view all the answers

Who will advise the Service on the approved equity interest of the parties if no jointly executed agreement is made available?

The Commission Signup and view all the answers

What is the basis for the apportionment of profits, expenses, and tax chargeable upon each company?

Equity interest of the parties Signup and view all the answers

What happens if no jointly executed agreement is made available and the Commission advises the Service on the approved equity interest of the parties?

It shall be binding on the parties Signup and view all the answers

According to the Petroleum Industry Act, 2021, what factors does the Commission consider when establishing the fiscal oil price for a crude oil stream with no established price?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, when can the Service disregard any disposition or direct adjustments to counteract the reduction of liability to tax?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, how does the Act define an artificial or fictitious transaction?

A transaction that is considered by the Service to be artificial or fictitious Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'disposition' in subsection (2)?

The trust, grant, covenant, agreement or arrangement Signup and view all the answers

According to the Petroleum Industry Act, 2021, when are transactions deemed to be artificial or fictitious?

When they involve persons with control over each other Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if a company receives a direction under section 271?

The company can appeal the direction Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens to costs incurred before the production and sale or disposal of chargeable oil?

They are amortised in line with the Fifth Schedule Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if a company fails to fulfill the guarantee or conditions of a sale?

The Service may revoke the direction and make additional assessments or repayments of tax Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if a company makes a subsequent disposal of the assets acquired within three years?

The company will be treated as if it did not qualify for the concession Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if a trade or business of petroleum operations is sold or transferred to another company?

The transaction shall be dealt with under section 266 (1) (c) Signup and view all the answers

According to the Petroleum Industry Act, 2021, when does the accounting period of the company acquiring a trade or business commence?

On the date approved by the Service Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the chargeable tax for the profit from crude oil for petroleum mining leases selected under section 93 (6) (b) and (7) (b) of this Act with respect to onshore and shallow water areas?

30% Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the chargeable tax for the profit from crude oil for onshore and shallow water and for petroleum prospecting licences selected under section 93 (6) (a) and (7) (a) of this Act?

15% Signup and view all the answers

According to the Petroleum Industry Act, 2021, when is a company liable to pay an additional amount of chargeable tax?

When the chargeable tax for the accounting period is less than the calculated amount Signup and view all the answers

According to the Petroleum Industry Act, 2021, how is the chargeable tax for crude oil calculated for a company in Nigeria?

By multiplying the number of barrels of crude oil by the fiscal oil price per barrel Signup and view all the answers

According to the Petroleum Industry Act, 2021, how does the Commission establish the fiscal oil price at each measurement point?

On an export parity basis under paragraph 8 (1) and (2) of the Seventh Schedule Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if there is no established fiscal oil price for a crude oil stream?

The Commission establishes a fiscal oil price for the stream based on Nigerian crude oil streams of comparable quality and specific gravity Signup and view all the answers

According to the Petroleum Industry Act, 2021, when is the additional chargeable tax for crude oil and associated gas payable by a company?

Concurrently with the final instalment of the chargeable tax payable for the accounting period Signup and view all the answers

According to the Petroleum Industry Act, 2021, which of the following is NOT subject to hydrocarbon tax under Part II?

Associated natural gas Signup and view all the answers

According to the Petroleum Industry Act, 2021, which of the following is NOT responsible for the determination and collection of royalties, signature bonus, rents, and related payments?

The Minister Signup and view all the answers

According to the Petroleum Industry Act, 2021, which of the following is subject to hydrocarbon tax under Part II?

Condensates and natural gas liquids produced from associated gas at gas processing or other facilities downstream of the measurement points Signup and view all the answers

According to the Petroleum Industry Act, 2021, which of the following is NOT an allowable deduction for a company's adjusted profit from its upstream petroleum operations applicable to crude oil?

Costs of gas reinjection wells Signup and view all the answers

According to the Petroleum Industry Act, 2021, if a company's liability is waived, released, or recovered after a deduction has been allowed for that liability, what happens to the corresponding deduction amount?

It is treated as income of the company in the current accounting period Signup and view all the answers

According to the Petroleum Industry Act, 2021, which of the following is an allowable deduction for a company's adjusted profit from its upstream petroleum operations applicable to crude oil?

Expenses directly incurred for repair of fixtures Signup and view all the answers

According to the Petroleum Industry Act, 2021, which of the following is NOT a condition applicable to a gas transportation pipeline licence?

Exclusivity in transporting gas Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'crude oil revenue' for a company engaged in upstream petroleum operations?

The value of any chargeable oil adjusted to the measurement points Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the deductions allowed in computing the adjusted profit of a company engaged in upstream petroleum operations related to crude oil?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the formula for calculating the assessable profit of a company engaged in upstream petroleum operations related to crude oil?

Assessable profit = Adjusted profit - Deductions allowed Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the formula for calculating the chargeable profits of a company engaged in upstream petroleum operations related to crude oil?

Chargeable profits = Assessable profits - Deductions allowed Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the formula for calculating the chargeable profits of a company for any accounting period?

Chargeable profits = Assessable profits - (Capital allowances + Production allowances) Signup and view all the answers

According to the Petroleum Industry Act, 2021, how is the chargeable tax for any accounting period of a company determined?

The chargeable tax is a percentage of the chargeable profit for that period, based on the type of crude oil and the area of operation. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the maximum additional chargeable tax payable by a company if the calculated chargeable tax is less than a certain amount?

The maximum additional chargeable tax payable is the difference between the calculated chargeable tax and the amount determined for crude oil exported from Nigeria. Signup and view all the answers

According to the Petroleum Industry Act, 2021, how is the fiscal oil price established by the Commission for a company's crude oil stream?

The fiscal oil price is established at each measurement point on an export parity basis, and the total value of the chargeable oil for a company is the sum of the multiplications of volume and fiscal oil price at all measurement points. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'adjusted profit'?

The profit of an accounting period after the deduction of any loss incurred by the company during any previous accounting period. Signup and view all the answers

According to the Petroleum Industry Act, 2021, how is the assessable profit determined for each company or petroleum mining lease?

The assessable profit is the amount of the adjusted profit of that period after the deduction of the amount of any loss incurred by that company during any previous accounting period. Signup and view all the answers

According to the Petroleum Industry Act, 2021, when can a company elect to defer a deduction under subsection (1) of section 265?

Within five months after the end of any accounting period of a company, or within such further time as the Service may permit in writing. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for engaging in petroleum operations without a valid lease, licence, or permit?

A fine not exceeding 10 million naira. Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the objective of Chapter 4?

To establish a progressive fiscal framework that encourages investment in the Nigerian petroleum industry Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the consequence for a community if an act of vandalism or civil unrest causes damage to petroleum facilities or disrupts production activities?

The community will forfeit its entitlement to the costs of repairs Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is one of the objectives of the fiscal framework?

To establish a fiscal framework that is based on core principles of clarity, dynamism, and fiscal rules of general application Signup and view all the answers

According to the Petroleum Industry Act, 2021, which entity is responsible for the assessment and collection of hydrocarbon tax and companies income tax in relation to taxable petroleum operations?

The Federal Inland Revenue Service Signup and view all the answers

According to the Petroleum Industry Act, 2021, which payments are included in the money collected from the petroleum industry that are due to the Government and transferred to the Federation Account?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, which types of natural gas liquids are exempt from hydrocarbon tax under the Part II of the Act?

All of the above Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the responsibility of the Authority in relation to the determination and collection of the gas flare penalty?

The Authority is responsible for determining and collecting the gas flare penalty arising from upstream petroleum operations Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the main objective of the fiscal framework established in Chapter 4?

To expand the revenue base of the Federal Government Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if an act of vandalism or civil unrest causes damage to petroleum facilities within the host communities?

The community forfeits its entitlement to the costs of repairs Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of the trust fund mentioned in Section 285?

To establish a reserve for future repairs Signup and view all the answers

According to the Petroleum Industry Act, 2021, which entity is responsible for the assessment and collection of hydrocarbon tax and companies income tax in relation to taxable petroleum operations?

The Service Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for failing to comply with the provisions of this Chapter or any regulation made under this Act for which no other penalty is specifically provided?

A fine not exceeding 5 million naira Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the definition of 'liquefied petroleum gas' or 'LPG'?

Crude oil as well as field condensates and liquid natural gas liquids derived from associated gas and produced in the field upstream of the measurement points Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the role of NNPC Limited in the event of a commercial discovery in frontier acreages?

NNPC Limited shall be entitled to 70% of the profit oil and profit gas from the commercial discovery Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the objective of Chapter 4?

To establish a progressive fiscal framework Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the consequence for a community if an act of vandalism or sabotage occurs that causes damage to petroleum facilities?

The community will forfeit its entitlement to the costs of repairs Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the basis for computation of the trust fund in any year?

It excludes the cost of repairs of damaged facilities due to vandalism or sabotage Signup and view all the answers

Which entity is responsible for the assessment and collection of hydrocarbon tax and companies income tax in accordance with the Petroleum Industry Act, 2021?

The Federal Inland Revenue Service Signup and view all the answers

Which of the following is NOT subject to hydrocarbon tax under the Petroleum Industry Act, 2021?

Non-associated natural gas Signup and view all the answers

Which entity is responsible for the determination and collection of royalties, signature bonus, rents, and related payments under the Petroleum Industry Act, 2021?

The Nigerian Upstream Petroleum Regulatory Commission Signup and view all the answers

Which entity is responsible for the determination and collection of the gas flare penalty arising from midstream operations under the Petroleum Industry Act, 2021?

The Authority Signup and view all the answers

According to the Petroleum Industry Act, 2021, what factors may the Authority consider when exercising its powers?

The number of competitors in the market Signup and view all the answers

According to the Petroleum Industry Act, 2021, what actions can the Authority take if a person fails to comply with a notice or directive?

Impose a fine or revoke a license Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the common provisions for upstream, midstream, and downstream petroleum operations?

The Act contains common provisions for these operations Signup and view all the answers

According to the Petroleum Industry Act, 2021, what must be considered before decommissioning a transportation pipeline?

The potential for reuse of the pipeline in connection with further hydrocarbon developments Signup and view all the answers

According to the Petroleum Industry Act, 2021, what factors should be considered when making a recommendation to leave an installation, structure, or gathering line in place?

The potential future effects on the environment Signup and view all the answers

According to the Petroleum Industry Act, 2021, who is responsible for carrying out remaining or unfulfilled decommissioning and abandonment obligations for an expired license or lease?

The original license or lease holder Signup and view all the answers

According to the Petroleum Industry Act, 2021, what must the Commission or Authority do before assessing a penalty?

Provide notice to the person Signup and view all the answers

Under the Petroleum Industry Act, 2021, when can decommissioning and abandonment take place?

With the written approval of the Commission or Authority Signup and view all the answers

What is required in the programme submitted by the lessee or licensee for decommissioning and abandonment?

Estimate of the cost of the proposed measures Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens to installations and structures on land during decommissioning and abandonment?

They are completely removed and the environment is restored Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of stakeholders' consultation?

To gather feedback and input from impacted parties Signup and view all the answers

According to the Petroleum Industry Act, 2021, when can the Commission or Authority issue a regulation without conducting stakeholders' consultation?

When the regulation is urgent Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if a holder of a lease, license, or permit fails to comply with a notice issued by the Commission or Authority?

The Commission or Authority will issue an enforcement order Signup and view all the answers

According to the Petroleum Industry Act, 2021, under what circumstances can the Commission or Authority impose a penalty on the holder of a lease, license, or permit?

If the contravention was deliberate Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for obstructing or assaulting an officer of the Commission or Authority?

Both A and B Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for engaging in petroleum operations without a valid lease, licence, or permit?

Both A and B Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for failing or refusing to furnish, return, or supply information to the Commission or Authority?

A term of imprisonment and applicable fine Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for prescribed contraventions of the Act, regulations, or an order made under the Act?

Both A and B Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the consequence for a holder of a lease, licence, or permit who fails to comply with an enforcement order under this section?

The Commission shall revoke the permit or recommend to the Minister to suspend or revoke the licence or lease Signup and view all the answers

According to the Petroleum Industry Act, 2021, who is responsible for settling any dispute between a lessee, licensee, or permit holder and the Commission or the Authority?

The Federal High Court Signup and view all the answers

According to the Petroleum Industry Act, 2021, what must a person engaged in petroleum operations do in order to comply with the Act?

Register their undertaking with the Commission or Authority Signup and view all the answers

According to the Petroleum Industry Act, 2021, how should a lease, licence, permit, or authorisation be prepared?

In duplicate, with one copy delivered to the holder and the other retained by the Commission or Authority Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of the register maintained by the Commission or Authority?

To record any extension, transfer, surrender, revocation, exemption, relinquishment, change of address, change of name, or any other matter affecting the status of or any interest in any lease, licence, permit or authorisation Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the time limit for the Commission's or Authority's approval or rejection of any matter requiring their approval?

Within the time limit specified in the Act or any regulation, or 90 days if no time limit is specified Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the consequences if the Commission or Authority fails to communicate in writing its approval or rejection of an application within the stipulated time frame?

The application is deemed to have been approved and the default approval shall be recorded in the appropriate register by the Commission or Authority Signup and view all the answers

According to the Petroleum Industry Act, 2021, what are the restrictions on the use and disclosure of confidential or other information acquired by a director or employee of the Commission or Authority?

Such information shall not be used for any unauthorised or unofficial purpose and shall not be disclosed to any other person except for legal proceedings under the Act or any other law, and for the purpose of this Act or any other law Signup and view all the answers

According to the Petroleum Industry Act, 2021, what factors may the Authority consider when exercising its powers?

The relevant economic market Signup and view all the answers

According to the Petroleum Industry Act, 2021, what actions can the Authority take if a person fails to comply with a notice or directive?

Impose a fine Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of a 'cease and desist' order?

To direct a person to stop a prohibited act or activity Signup and view all the answers

According to the Petroleum Industry Act, 2021, what factors must be considered before the approval of an application or programme for decommissioning and abandonment?

The potential for reuse of a transportation pipeline and compliance with relevant regulations Signup and view all the answers

According to the Petroleum Industry Act, 2021, what must be guaranteed when performing the removal or partial removal of an installation, structure, or transportation pipeline?

Sustainable environmental development Signup and view all the answers

According to the Petroleum Industry Act, 2021, who is responsible for enforcing compliance with decommissioning and abandonment obligations?

The Commission or Authority Signup and view all the answers

According to the Petroleum Industry Act, 2021, who are the stakeholders that may be consulted prior to finalizing any regulations or amendments?

The lessees, licensees, permit holders, and other interested persons Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the minimum notice period for the commencement of stakeholders' consultation?

21 days Signup and view all the answers

According to the Petroleum Industry Act, 2021, under what circumstances can the Commission or Authority issue a regulation without conducting a stakeholders' consultation?

If the regulation is urgent Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the validity period of a regulation issued without conducting a stakeholders' consultation?

1 year Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for failing to comply with any lawful demand, notice, or order of an officer or authorized person of the Commission or Authority in the execution of their duties?

A fine prescribed in regulations Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the consequence for a person who engages in petroleum operations without a valid lease, license, or permit where required?

Committing an offence Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for furnishing a false or incomplete return to the Commission or Authority?

Term of imprisonment and applicable fine Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the penalty for failing or refusing to furnish, return, or supply information to the Commission or Authority?

Term of imprisonment and applicable fine Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the time limit for making representations to the Commission or Authority after receiving a notice of penalty?

Within 30 days Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the requirement for decommissioning and abandonment of petroleum wells on land and offshore?

In accordance with good international petroleum industry practice and guidelines issued by the Commission or Authority Signup and view all the answers

According to the Petroleum Industry Act, 2021, what happens if a decommissioning and abandonment programme is submitted by a licensee or lessee?

Consultations are made with interested parties and relevant public authorities and bodies Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the requirement for installations and structures on land during decommissioning and abandonment?

They must be completely removed and the environment restored to its original condition Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the purpose of the register of memorials and interests?

To record any changes in the status of leases, licenses, permits, or authorizations Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the consequence if the Commission or Authority fails to communicate their approval or rejection of an application within the stipulated time frame?

The application is deemed to have been approved Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the responsibility of a director or employee of the Commission or Authority regarding confidential information?

They must not make use of such information for any unauthorised or unofficial purpose Signup and view all the answers

According to the Petroleum Industry Act, 2021, what legislative provisions must be followed for the storage, application, transportation, and other operations involving radioactive materials in oil and gas operations?

Nuclear Safety and Radiation Protection Act and other applicable legislation Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the consequence for a holder of a lease, licence or permit who fails to comply with an enforcement order under this section?

The Commission shall revoke the permit or recommend to the Minister to suspend or revoke the licence or lease Signup and view all the answers

According to the Petroleum Industry Act, 2021, who is responsible for settling any dispute between a lessee, licensee or permit holder and the Commission or the Authority?

The Federal High Court Signup and view all the answers

According to the Petroleum Industry Act, 2021, what is the requirement for displaying a license or permit issued under this Act?

It should be conspicuously exhibited in a prominent place on the business premises Signup and view all the answers

According to the Petroleum Industry Act, 2021, how should a lease, licence, permit or authorisation be prepared?

In duplicate, with one copy delivered to the holder and the other copy retained by the Commission or Authority Signup and view all the answers

Petroleum Industry Act Quiz

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Questions and Answers

What is one of the powers of the Minister in the petroleum industry?

What is one of the roles of the Minister in the petroleum industry?

What is one of the responsibilities of the Minister in the petroleum industry?

According to the Petroleum Industry Act, 2021, who has the property and ownership of petroleum within Nigeria and its territorial waters?

What are the objectives of Chapter 1 of the Petroleum Industry Act, 2021?

Which part of the Petroleum Industry Act, 2021 deals with the Minister of Petroleum?

Which entity is the property and ownership of petroleum within Nigeria vested in?

What is one of the objectives of Chapter 1 of the Petroleum Industry Act, 2021?

What is the purpose of the Petroleum Industry Act, 2021?

According to the Petroleum Industry Act, 2021, what is one of the powers of the Minister?

What is one of the roles of the Minister in the petroleum industry?

According to the Petroleum Industry Act, 2021, what is one of the responsibilities of the Minister?

What is one of the powers of the Minister in relation to petroleum operations?

According to the Petroleum Industry Act, 2021, how many non-executive commissioners are there on the Board of the Commission?

According to the Petroleum Industry Act, 2021, how long is the term of office for a person appointed as a non-executive commissioner?

According to the Petroleum Industry Act, 2021, how many representatives of the Ministry are on the Board of the Commission?

According to the Petroleum Industry Act, 2021, who appoints the members of the Board of the Commission?

According to the Petroleum Industry Act, 2021, how many non-executive commissioners can resign their appointment by giving two-month's written notice to the President?

How many executive commissioners are there for the Commission?

How many years of post-qualification cognate experience is required for a person to be appointed as the Commission Chief Executive and as an executive commissioner of the Commission?

How long is the initial term of appointment for the Commission Chief Executive?

According to the Petroleum Industry Act, 2021, what is one of the powers of the Minister in relation to petroleum operations?

According to the Petroleum Industry Act, 2021, who is responsible for granting petroleum prospecting licences and petroleum mining leases?

According to the Petroleum Industry Act, 2021, what is one of the powers of the Minister in the context of international oil pricing agreements supported by Nigeria?

According to the Petroleum Industry Act, 2021, what is one of the functions of the Commission with respect to frontier basins?

What is one of the functions of the Commission in managing upstream petroleum operations?

According to the Petroleum Industry Act, 2021, what is one of the responsibilities of the Commission?

What is one of the functions of the Commission in conducting bidding rounds for petroleum prospecting licences and petroleum mining leases?

According to the Petroleum Industry Act, 2021, what is the purpose of the Frontier Exploration Fund?

According to the Petroleum Industry Act, 2021, what is the percentage of NNPC Limited's profit oil and profit gas that is allocated to the Frontier Exploration Fund?

According to the Petroleum Industry Act, 2021, what is the role of NNPC Limited in the event of a commercial discovery in frontier acreages?

According to the Petroleum Industry Act, 2021, what is one of the powers of the Commission?

According to the Petroleum Industry Act, 2021, what is the main responsibility of the Nigerian Upstream Petroleum Regulatory Commission (the Commission)?

What is one of the objectives of the Nigerian Upstream Petroleum Regulatory Commission (the Commission) as stated in the Petroleum Industry Act, 2021?

What is one of the functions of the Nigerian Upstream Petroleum Regulatory Commission (the Commission) as stated in the Petroleum Industry Act, 2021?

What is one of the powers of the Nigerian Upstream Petroleum Regulatory Commission (the Commission) as stated in the Petroleum Industry Act, 2021?

According to the Petroleum Industry Act, 2021, which of the following individuals is eligible to be appointed as the Commission Chief Executive or an Executive Commissioner, despite having a financial interest in the petroleum industry?

Under the Petroleum Industry Act, 2021, which of the following conditions must be met for an individual to be eligible for appointment as the Commission Chief Executive or an Executive Commissioner, despite being a relative of a person engaged in any activity connected with the petroleum industry?

According to the Petroleum Industry Act, 2021, which of the following individuals is NOT eligible to be appointed as the Commission Chief Executive or an Executive Commissioner?

According to the Petroleum Industry Act, 2021, what is one of the responsibilities of the Commission?

According to the Petroleum Industry Act, 2021, what is one of the functions of the Commission?

According to the Petroleum Industry Act, 2021, what is one of the objectives of the Commission?

According to the Petroleum Industry Act, 2021, what is one of the powers of the Commission?

According to the Petroleum Industry Act, 2021, what is one of the provisions that the terms and conditions of service for employees of the Authority may include?

Under the Petroleum Industry Act, 2021, what does the term 'appointment' include in relation to employees of the Authority?

According to the Petroleum Industry Act, 2021, who are the employees of the Authority considered to be?

According to the Petroleum Industry Act, 2021, what is the name of the body corporate responsible for the technical and commercial regulation of midstream and downstream petroleum operations in the petroleum industry?

According to the Petroleum Industry Act, 2021, what is the name of the unit or person authorized by the Commission to perform the special powers of the Commission?

According to the Petroleum Industry Act, 2021, who shall be indemnified out of the Commission Fund against any liability incurred in defending any proceeding against the Commission or brought against him in his official capacity?

According to the Petroleum Industry Act, 2021, how long is the initial term of office for a person appointed under subsection (2) (a) and (b)?

According to the Petroleum Industry Act, 2021, how long is the term of office for a member of the Board of the Authority?

According to the Petroleum Industry Act, 2021, how long is the term of office for an executive director of the Authority?

According to the Petroleum Industry Act, 2021, how many consecutive times can a member of the Board of the Authority be absent from the meeting without the consent of the Chairman or the President?

According to the Petroleum Industry Act, 2021, how many executive directors are there for the Authority?

According to the Petroleum Industry Act, 2021, how many years of post-qualification cognate experience is required for a person to be appointed as Authority Chief Executive and as an executive director of the Authority?

According to the Petroleum Industry Act, 2021, how long is the initial term of appointment for the Authority Chief Executive?

According to the Petroleum Industry Act, 2021, how many non-executive members can resign their appointment by giving two month's written notice to the President?

According to the Petroleum Industry Act, 2021, what is one of the functions of the Nigerian Upstream Petroleum Regulatory Commission (the Commission)?

According to the Petroleum Industry Act, 2021, what is one of the responsibilities of the Commission?

According to the Petroleum Industry Act, 2021, what is one of the powers of the Minister?

According to the Petroleum Industry Act, 2021, how many non-executive commissioners are there on the Board of the Commission?

According to the Petroleum Industry Act, 2021, what is one of the objectives of the Authority?

What is one of the functions of the Authority as stated in the Petroleum Industry Act, 2021?

According to the Petroleum Industry Act, 2021, what is one of the responsibilities of the Authority?

According to the Petroleum Industry Act, 2021, what is one of the functions of the Authority in relation to natural gas and petroleum products?

According to the Petroleum Industry Act, 2021, what is one of the functions of the Nigerian Upstream Petroleum Regulatory Commission (the Commission)?

According to the Petroleum Industry Act, 2021, what is one of the roles of the Minister in the petroleum industry?

According to the Petroleum Industry Act, 2021, what is one of the powers of the Nigerian Upstream Petroleum Regulatory Commission (the Commission)?

According to the Petroleum Industry Act, 2021, what is the purpose of the Frontier Exploration Fund?

According to the Petroleum Industry Act, 2021, which of the following is NOT a function of the Authority?

According to the Petroleum Industry Act, 2021, which of the following is NOT a member of the Governing Board of the Authority?

According to the Petroleum Industry Act, 2021, what is the purpose of the Gas Infrastructure Fund?

According to the Petroleum Industry Act, 2021, how are appointments to the Board of the Authority made?

According to the Petroleum Industry Act, 2021, who holds the ownership of all shares in NNPC Limited at incorporation?

According to the Petroleum Industry Act, 2021, what is the name of the limited liability company to be incorporated under the Companies and Allied Matters Act?

According to the Petroleum Industry Act, 2021, who approves the transfer of shares held by the Government in NNPC Limited?