Petroleum Industry Act, 2021 PDF

Petroleum Industry Act, 2021 2021 No. 6 A 175 irrespective of whether such licence or lease is converted under section 92 of this Act ; (h) engage in the business of renewables and other energy investments ; (i) promote the domestic use of natural gas through development and operation of large-sc...

Petroleum Industry Act, 2021 2021 No. 6 A 175 irrespective of whether such licence or lease is converted under section 92 of this Act ; (h) engage in the business of renewables and other energy investments ; (i) promote the domestic use of natural gas through development and operation of large-scale gas utilisation industries ; (j) maintain the role of NNPC, under section 54 of this Act ; (k) carry out task requested by the Commission or Authority on a fee basis and generally engage in activities that ensure national energy security in an efficient manner, in the overall interest of the Federation ; (l) carry out such other tasks as may be determined by the Board of NNPC Limited ; and (m) make NNPC Limited supplier of last resort for security reasons and all associated costs shall be for the account of the Federation. 65.—(1) NNPC Limited and other parties to joint operating agreements in respect of upstream petroleum operations, may on a voluntary basis restructure their joint operating agreement as a joint venture carried out by way of a limited liability company, each referred to as an “incorporated joint venture company” (IJVC), based on the principles established in the Second Schedule to this Act. Establishment of incorporated joint venture companies. Second Schedule. (2) The IJVC referred to in subsection (1) shall not be subject to the provisions of the Fiscal Responsibility Act and the Public Procurement Act. Act No 31, 2007. (3) The proposed IJVC structure shall be an independent entity, having a strong commercial orientation and transparent company operation for the IJVC shareholders, with clear rules for accountability. Act No 14, 2007. CHAPTER 2—ADMINISTRATION PART I—GENERAL ADMINISTRATION 66.—(1) The objectives of Chapter 2 are to— (a) promote the exploration and exploitation of petroleum resources in Nigeria for the benefit of the Nigerian people ; (b) promote the efficient, effective and sustainable development of the petroleum industry ; (c) promote the safe and efficient operation of the transportation and distribution infrastructure for the petroleum industry ; (d) provide the framework for developing third party access arrangements to petroleum infrastructure ; Objectives. A 176 2021 No. 6 Petroleum Industry Act, 2021 (e) encourage and facilitate both local and foreign investment in the petroleum industry ; (f ) promote transparency and accountability in the administration of petroleum resources in Nigeria ; (g) develop, where appropriate, competitive markets for the sale and distribution of petroleum and petroleum products ; (h) promote safe and affordable access to petroleum and petroleum products in Nigeria ; (i) promote the processing of petroleum within Nigeria and the development of fuel and chemical industry and other related value-added products and activities ; (j) create a conducive business environment for operations in the petroleum industry ; (k) promote the liberalisation of the downstream petroleum industry ; (l) establish an orderly, fair and competitive commercial environment within the petroleum industry ; and (m) ensure that petroleum operations are conducted in a manner that protects the health and safety of persons, property and the environment. (2) The provisions of Chapter 2 of this Act shall apply to— (a) activities within or associated with petroleum operations and the petroleum industry ; and (b) persons conducting such activities. Management of petroleum resources. 67. The administration and management of petroleum resources and their derivatives shall be conducted in accordance with this Act and the principles of good governance, transparency and sustainable development of Nigeria. PART II—ADMINISTRATION OF UPSTREAM PETROLEUM OPERATIONS AND ENVIRONMENT Administration of acreage and vesting of data. 68.—(1) Title to any data and its interpretation relating to upstream petroleum operations are vested in the Government of the Federation of Nigeria and shall be administered by the Commission. (2) The Commission shall administer any acreage for upstream petroleum operations in Nigeria. (3) Where a significant petroleum discovery is made in a frontier basin, the Minister may, on the recommendation of the Commission, reclassify all or part of the basin from frontier acreages to a general onshore area and the fiscal terms applicable to onshore under this Act shall apply to—