Petroleum Industry Act, 2021 PDF

Petroleum Industry Act, 2021 2021 No. 6 A 131 PETROLEUM INDUSTRY ACT, 2021 ACT No. 6 AN ACT TO PROVIDE LEGAL, GOVERNANCE, REGULATORY AND FISCAL FRAMEWORK FOR THE NIGERIAN PETROLEUM INDUSTRY, THE DEVELOPMENT OF HOST COMMUNITIES ; AND FOR RELATED MATTERS [16th Day of August, 2021] Commencement....

Petroleum Industry Act, 2021 2021 No. 6 A 131 PETROLEUM INDUSTRY ACT, 2021 ACT No. 6 AN ACT TO PROVIDE LEGAL, GOVERNANCE, REGULATORY AND FISCAL FRAMEWORK FOR THE NIGERIAN PETROLEUM INDUSTRY, THE DEVELOPMENT OF HOST COMMUNITIES ; AND FOR RELATED MATTERS [16th Day of August, 2021] Commencement. ENACTED by the National Assembly of the Federal Republic of Nigeria— CHAPTER 1—GOVERNANCE AND INSTITUTIONS PART I—OBJECTIVES AND APPLICATION 1. The property and ownership of petroleum within Nigeria and its territorial waters, continental shelf and exclusive economic zone is vested in the Government of the Federation of Nigeria. 2. The objectives of this Chapter are to— Vesting of petroleum. Objectives. (a) create efficient and effective governing institutions, with clear and separate roles for the petroleum industry ; (b) establish a framework for the creation of a commercially oriented and profit-driven national petroleum company ; (c) promote transparency, good governance and accountability in the administration of the petroleum resources of Nigeria ; (d) foster a business environment conducive for petroleum operations ; and (e) deepen local content practice in Nigeria oil and gas industry. PART II—MINISTER OF PETROLEUM 3. (1)—The Minister shall— (a) formulate, monitor and administer government policy in the petroleum industry ; (b) exercise general supervision over the affairs and operations of the petroleum industry in accordance with the provisions of this Act ; (c) report developments in the petroleum industry to the government ; (d) represent Nigeria at international organisations on petroleum matters ; (e) promote an enabling environment for investment in the Nigerian petroleum industry ; (f ) negotiate treaties or other international agreements on matters pertaining to petroleum on behalf of the Government ; Powers of the Minister. A 132 2021 No. 6 Petroleum Industry Act, 2021 (g) upon the recommendation of the Commission, grant petroleum prospecting licences and petroleum mining leases through the processes established in this Act; (h) upon the recommendation of the Commission and pursuant to the provisions of this Act and the regulations, revoke and assign interests in petroleum prospecting licences and petroleum mining leases ; (i) delegate in writing to the Chief Executive of the Commission or Authority any power conferred on the Minister by or under this Act ; (j) upon the recommendation of the Commission or Authority approve the fees for services rendered by the Commission or Authority in regulations ; and (k) upon the recommendation of the Commission or the Authority, direct in writing the suspension of petroleum operations in any area— (i) until arrangements to prevent danger to life or property have been made to his satisfaction, or (ii) where in his opinion, a contravention of this Act or any regulation made under this Act has occurred or is likely to occur. (2) The Minister may order a cutback of the levels of crude oil or condensate production in the context of international oil pricing agreements supported by Nigeria. First Schedule. (3) The Minister shall have rights of pre-emption of petroleum and petroleum products marketed under any licence or lease in the event of a national emergency under the First Schedule to this Act. (4) The Minister shall give general policy directives to the Commission on matters concerning upstream petroleum operations and to the Authority on matters relating to midstream and downstream petroleum operations as well as matters related to co-operation among the two entities in line with the provisions of this Act and the Commission and the Authority shall comply with such directives. (5) The Minister shall cause the general policy directives issued under subsection (4) to be published in the Federal Government Gazette. PART III—THE COMMISSION Establishment of the Nigerian Upstream Petroleum Regulatory Commission. 4.—(1) There is established the Nigerian Upstream Petroleum Regulatory Commission (in this Act referred to as “the Commission”) which shall be a body corporate with perpetual succession and a common seal. (2) The Commission shall have the power to acquire, hold and dispose of property, sue and be sued in its own name.