Petroleum Industry Act, 2021 PDF

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...

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. Petroleum Industry Act, 2021 2021 No. 6 A 133 (3) The Commission shall be responsible for the technical and commercial regulation of upstream petroleum operations. 5. The objects and functions of the Commission in this Part are limited Application of this Part. to upstream petroleum operations. 6. The objectives of the Commission shall be to— (a) regulate upstream petroleum operations including technical, operational and commercial activities ; (b) ensure compliance with all applicable laws and regulations governing upstream petroleum operations ; (c) ensure that upstream petroleum operations are carried out in a manner to minimise waste and achieve optimal government revenues ; (d) promote healthy, safe, efficient and effective conduct of upstream petroleum operations in an environmentally acceptable and sustainable manner ; (e) ensure efficient, safe, effective and sustainable infrastructural development of upstream petroleum operations ; (f ) determine, administer and ensure the implementation and maintenance of technical standards, codes, practices and specifications applicable to upstream petroleum operations pursuant to good international petroleum industry practices ; (g) implement government policies for upstream petroleum operations as directed by the Minister of Petroleum in accordance with the provisions of this Act ; (h) promote an enabling environment for investment in upstream petroleum operations ; (i) ensure strict implementation of environmental policies, laws and regulations for upstream petroleum operations ; (j) ensure the implementation of national policies for upstream petroleum operations ; and (k) implement such other policies and objectives as are consistent with the provisions of this Act. 7. The technical regulatory functions of the Commission include to— (a) enforce, administer and implement laws, regulations and policies relating to upstream petroleum operations ; (b) ensure compliance with applicable national and international petroleum industry policies, standards and practices for upstream petroleum operations ; Objectives of the Commission. Technical regulatory functions of the Commission. A 134 2021 No. 6 Petroleum Industry Act, 2021 (c) establish, monitor, regulate and enforce health, safety and environmental measures and standards relating to upstream petroleum operations including— (i) management of petroleum reserves and installations, and (ii) exploration, development and production activities within the onshore, frontier, shallow water and deep offshore acreages of Nigeria ; (d) 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 upstream petroleum operations ; (e) 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 upstream petroleum operations including— (i) crude oil and natural gas evaluation and management, (ii) upstream natural gas gathering, (iii) natural gas treatment, and (iv) the elimination of natural gas flaring and venting ; (f ) keep public registers of— (i) licences and leases granted by the Minister and permits and other authorisations issued by the Commission, (ii) beneficial ownership, and (iii) award, renewal, assignment, amendment, suspension and revocation ; (g) carry out enquiries, tests, audits or investigations and take other steps to monitor the activities of licensees, lessees or permit holders ; (h) establish and enforce standards relating to upstream petroleum operations ; (i) undertake evaluation of national reserves and develop policies for prudent reservoir management practices ; (j) maintain a Nigerian petroleum industry data bank comprising of materials, information and data acquired by, or submitted to, the Commission in the exercise of its statutory and regulatory functions ; (k) require lessees, licensees and permit holders to furnish and publish specified information relating to upstream petroleum operations in this Act and the National Data Repository Regulation, 2020 ; (l) supervise and ensure accurate calibration and certification of equipment used for metering upstream petroleum operations, pursuant to applicable laws, and issue certificates of quality and quantity for petroleum produced ; Petroleum Industry Act, 2021 2021 No. 6 (m) publish reports and statistics on upstream petroleum operations to promote the growth of the petroleum industry ; (n) advise the Minister on fiscal, operational, technical and other matters to enhance the upstream petroleum operations ; (o) issue permits and other authorisations as may be necessary under an upstream licence or lease, including— (i) seismic operations, (ii) drilling operations, and (iii) design, construction and operation of facilities for upstream petroleum operations ; (p) establish special laboratories to provide data storage and testing, quality assurance and certification for upstream petroleum operations ; (q) perform technical evaluation and assessments regarding submissions made to the Commission by licensees, lessees or permit holders involved in upstream petroleum operations ; (r) keep records, data and reports obtained from upstream petroleum operations, as may be required under any Act or regulation and give directive to any person, company or entity in that regard ; (s) manage and administer data regarding unallocated acreage ; (t) conduct bidding rounds for the award of petroleum prospecting licences and petroleum mining leases pursuant to this act and applicable regulations ; (u) when requested, provide assistance to parties conducting upstream petroleum operation, where in the sole opinion of the Commission such assistance is merited ; (v) approve field development plans for upstream petroleum operations as well as monitor its execution ; (w) compute, determine, assess and ensure payment of royalties, rents, fees, and other charges for upstream petroleum operations as stipulated under this Act and any regulation ; (x) establish parameters and codes of conduct for licensees, lessees or permit holders in the upstream petroleum operations ; (y) monitor the financial viability of licensees, lessees or permit holders with respect to upstream petroleum operations ; (z) develop, maintain and publish a database of upstream petroleum operations ; (aa) subject to the confidentiality provisions of section 83 (7) of this Act, share information and data on the upstream petroleum operations with other government entities which have functions with respect to the petroleum sector ; A 135 A 136 2021 No. 6 Petroleum Industry Act, 2021 (bb) perform such other function as may be necessary to give effect to the provisions of this Act. (cc) ensure and monitor performance of industry players and quality of the provision of services of servicing companies in the upstream petroleum industry ; (dd) conduct studies relating to the economy, efficiency and effectiveness of the upstream petroleum industry ; and (ee) issue certificates of quality and quantity to exporters of crude oil, natural gas and petroleum products from integrated operations and crude oil export terminals established prior to the effective date and the Commission shall have the power to monitor and regulate the operations of crude oil export terminals and the responsibility of weights and measures at the crude oil export terminals shall cease to exist from the effective date. Commercial regulatory functions of the Commission. 8. The commercial regulatory functions of the Commission shall be to— Functions of the Commission for frontier basins. 9.—(1) The functions of the Commission with respect to frontier basins shall be to— (a) review and approve the commercial aspects of field development plans in the upstream petroleum operations ; (b) develop cost studies and benchmarks for the evaluation of upstream petroleum operations taking into account petroleum industry specific issues, including field size, reservoir depth, location of operations, technology applied, production methods and petroleum quality ; (c) allocate petroleum production quotas for the purpose of curtailing export of petroleum in conjunction with NNPC Limited pursuant to regulations ; and (d) where in situ facilities or fixed or floating platforms or vessels provide for fully integrated upstream and midstream petroleum operations, the Commission shall consider and the Commission shall be in charge of such integrated operations and petroleum operations may be considered integrated where there is a joint use of utilities used exclusively for the upstream and midstream operations. (a) promote the exploration of the frontier basins of Nigeria ; (b) develop exploration strategies and portfolio management for the exploration of unassigned frontier acreages in Nigeria ; (c) identify opportunities and increase information about the petroleum resources base within frontier basins in Nigeria ; and (d) undertake studies, analyse and evaluate unassigned frontier basins in Nigeria. Petroleum Industry Act, 2021 2021 No. 6 A 137 (2) Where data acquired and interpreted under a petroleum exploration licence, in the judgment of the Commission, require testing and drilling of identifiable prospects and leads, and no commercial entity has publicly expressed an intention of testing or drilling such prospects, the Commission shall, in line with section 64 (k) of this Act, request the services of NNPC Limited to drill or test such prospect and leads on a service fee basis to be charged to the Frontier Exploration Fund under this Act. (3) Where commercial discovery is made under subsection (2), NNPC limited shall have the first right of refusal in the award of the acreage for subsequent development and other petroleum operations in such frontier acreages under this Act. (4) There shall be maintained, for the purpose of this section, a Frontier Exploration Fund which shall be 30% of NNPC Limited’s profit oil and profit gas as in the production sharing, profit sharing and risk service contracts. (5) NNPC Limited shall transfer the 30% of profit oil and profit gas under subsection (4) to the Frontier Exploration Fund escrow account dedicated for the development of frontier acreages and utilise the funds to carry out exploration and development activities in the frontier acreages subject to appropriation by the National Assembly. 10. The Commission shall have power to— (a) enforce the provisions of any— (i) regulation made with respect to upstream petroleum operations, (ii) regulations, policies or guidelines formerly administered by the Department of Petroleum Resources or the Petroleum Inspectorate, with respect to upstream petroleum operations, and (iii) enactments with respect to the upstream petroleum industry made prior to the coming into force of this Act and any regulations made pursuant to powers given under them ; (b) seal up any premises, under section 217 of this Act, including any facility or plant engaged in upstream petroleum operations, where there has been a contravention of this Act or any regulations made under this Act ; (c) ensure compliance with the Nuclear Safety and Radiation Protection Act and such other legislative provisions as may be applicable in upstream petroleum operations ; (d) set standards to promote the adoption of new technologies for upstream petroleum operations ; (e) require lessees, licensees and permit holders to publish specified and non-proprietary information relating to upstream petroleum operations ; Powers of the Commission. Cap N142, LFN, 2004. A 138 2021 No. 6 Petroleum Industry Act, 2021 (f ) issue guidelines in accordance with the provisions of this Act or any regulation in respect of upstream petroleum operations; (g) recommend to the Minister the revocation or suspension of licences or leases in accordance with this Act and approve renewal of leases ; (h) within the jurisdiction of the Commission, have access to— (i) areas or rights of way regarding licences, leases or any related offices or buildings where information or data are available for inspection under this Act ; and (ii) all installations to which this Act applies, including plants and stations of every description, for the purpose of inspecting the operations conducted therein and enforcing the provisions of this Act and any regulations made under it ; (i) impose on a petroleum prospecting licence, petroleum exploration licence or any petroleum mining lease to which this Act applies, special terms and conditions consistent with this Act at the grant or renewal of the licence or lease ; (j) renew licenses and leases subject to the provisions of this Act ; and (k) do such other things as are necessary and expedient for the effective and discharge of any of its functions under this Act. Governing Board of the Commission. 11.—(1) There is established a Governing Board (in this Act referred to as “the Board of the Commission”) which shall be responsible for the policy and general administration of the Commission. (2) The Board of the Commission shall consist of— (a) one non-executive chairman ; (b) two non-executive commissioners ; (c) the chief executive of the Commission (in this Act referred to as “the Commission Chief Executive”) ; (d) two other executive commissioners who are responsible for finance and accounts and exploration and acreage management ; (e) one representative of the Authority not below the rank of Director ; (f ) one representative of the Ministry not below the rank of Director ; and (g) one representative of the Ministry of Finance not below the rank of Director. (3) Appointments to the Board of the Commission under subsection (2) shall be made by the President subject to confirmation by the Senate, except for the appointments of ex-officio members under subsection (2) (e), (f ) and (g). Petroleum Industry Act, 2021 2021 No. 6 A 139 (4) A person appointed under subsection (2) (a) and (b) shall have at least 15 years post-qualification cognate experience in petroleum or other relevant sector of the economy and shall hold office for a period of five years and may be re-appointed for a further term of five years, on such terms and conditions as may be specified in the letter of appointment. (5) Subject to subsection (4) of this section and section 18 (7) of this Act, a commissioner shall hold office for five years and may be re-appointed for a further term of five years. (6) A non-executive commissioner shall hold office on part-time basis. (7) The Board of the Commission may authorise in writing any commissioner, committee of the Board of the Commission, the Commission Chief Executive or any other officer or employee of the Commission, to exercise any power or carry out any duty or function of the Commission under this Act or regulation made under this Act. (8) The proceedings of the Board of the Commission and other ancillary matters shall be as prescribed by regulation made under this Act. 12. The Board of the Commission shall— (a) be responsible for the formulation of policy, supervision and giving strategic direction to the Commission ; (b) provide general guidance for the carrying out of the functions of the Commission ; (c) review and approve the business, strategic and operating plans of the Commission ; (d) consider and approve the annual budget of the Commission before submission to the National Assembly for appropriation ; (e) approve the management accounts and audited accounts of the Commission and consider the management letter from the external auditors ; (f ) determine the terms and conditions of service of employees of the Commission ; (g) recommend remuneration, allowances, benefits and pensions of employees of the Commission in consultation with the National Salaries, Incomes and Wages Commission, having regard to the— (i) specialised nature of work to be performed by the Commission, (ii) need to ensure the financial self-sufficiency of the Commission, and (iii) remuneration and allowances paid in the private sector in upstream petroleum operations to individuals with equivalent responsibilities, expertise and skills ; Functions of the Board of the Commission. A 140 2021 No. 6 Petroleum Industry Act, 2021 (h) structure the Commission into such number of departments as it deems fit for the effective performance of the functions of the Commission ; and (i) perform such other functions as may be necessary for the efficient and effective administration of the Commission under this Act. Remuneration and allowances of the Board of the Commission. 13.—(1) Commissioners shall be paid from the funds of the Commission such remuneration and allowances as applicable. Suspension or removal of members of the Board of the Commission. 14. A member of the Board of the Commission may be suspended or removed from office by the President, where the member— Act No 3, 2020. (2) The Commission shall comply with the policy and guidelines of the National Salaries, Incomes and Wages Commission regarding remunerations. (a) is found to be— (i) unqualified for appointment under section 11 of this Act, (ii) unqualified subsequent to his appointment, or (iii) in breach of conflict of interest provisions in the Companies and Allied Matters Act or any regulation regarding conflicts of interest passed under this Act ; (b) ceases to be an employee of the ministry or agency he represents on the Board of the Commission ; (c) has demonstrated an inability to effectively discharge the duties of his office ; (d) has been absent from the meeting of the Board of the Commission for three consecutive times without the consent of the Chairman or in the case of the Chairman, without the consent of the President, except where good reason is shown for the absence ; (e) is found guilty of serious misconduct by a court or tribunal of competent jurisdiction ; or (f ) has, under the law in force in any country— (i) been adjudged or declared bankrupt or insolvent and has not been discharged, (ii) made an assignment to or arrangement or composition with his creditors which has not been rescinded or set aside, or (iii) been declared to be of unsound mind. Resignation of a nonexecutive commissioner. 15. A non-executive commissioner may resign his appointment by giving two-month’s written notice to the President. Petroleum Industry Act, 2021 2021 No. 6 A 141 16. A vacancy on the Board of the Commission shall occur, where a commissioner— Vacancy on the Board of the Commission. (a) dies ; (b) is removed from office in accordance with section 14 of this Act ; (c) resigns from office ; (d) completes his tenure of office ; or (e) is incapacitated. 17. A vacancy on the Board of the Commission shall be filled by the appointment of another person in accordance with section 11 of this Act. Filling of vacancy on the Board of the Commission. 18.—(1) The Commission Chief Executive is the accounting officer and shall be responsible for the administration of the Commission. Commission Chief Executive and Executive Commissioners. (2) There shall be six executive commissioners for the Commission with each responsible for one of the following— (a) Exploration and Acreage Management ; (b) Development and Production ; (c) Health, Safety, Environment and Community ; (d) Economic Regulation and Strategic Planning ; (e) Corporate Services and Administration ; and (f ) Finance and Accounts. (3) A person to be appointed as Commission Chief Executive and as an executive commissioner of the Commission shall have extensive managerial, technical or professional knowledge of the upstream petroleum operations with a minimum of 15 years post-qualification cognate experience. (4) The Commission Chief Executive shall be appointed on such terms and conditions as may be set out in the letter of appointment, except as otherwise provided for in this Act. (5) An Executive Commissioner shall be appointed on such terms and conditions as may be set out in the letter of appointment, except as otherwise provided for in this Act. (6) The Commission Chief Executive shall be appointed for an initial term of five years and may be re-appointed for a further term of five years, subject to confirmation by the Senate. A 142 2021 No. 6 Petroleum Industry Act, 2021 (7) The President may, not later than 90 days prior to the expiration of the tenure of the Commission Chief Executive or an executive commissioner, re-appoint the Commission Chief Executive or Executive Commissioner or appoint another qualified person. (8) A person shall not be appointed as a Commission Chief Executive or an Executive Commissioner, where the person— Act No 3, 2020. (a) is likely to be in breach of conflict of interest provisions under the Companies and Allied Matters Act or regulation made under this Act ; (b) has a financial interest in any business connected, directly or indirectly with the petroleum industry ; (c) is engaged in any activity for remuneration or otherwise connected with the petroleum industry ; (d) is a relative of a person who has an interest or is engaged in any of the activities under paragraphs (a)-(c), provided that— (i) such person may be appointed Commission Chief Executive or an Executive Commissioner if he declares his interest and makes appropriate arrangements to ensure the avoidance of a conflict of interest, (ii) the President is satisfied that the interest or activity shall not interfere with the person’s impartial discharge of his duties as the Commission Chief Executive or an executive commissioner, or (iii) the financial interest is terminated prior to the appointment taking effect ; or (e) has, under the laws in force in any country— (i) been adjudged or declared bankrupt or insolvent and has not been discharged, (ii) made an assignment to, or arrangement or composition with his creditors, which has not been rescinded or set aside, (iii) been declared to be of unsound mind, (iv) been convicted of any criminal offence by a court of competent jurisdiction except for traffic offences, or (v) been disqualified or suspended from practising his profession by the order of a competent authority. Employees of the Commission. 19. The Board of the Commission shall determine the number of persons that shall be employees of the Commission. Petroleum Industry Act, 2021 2021 No. 6 A 143 20.—(1) The employees of the Commission shall be subject to terms Terms and conditions of and conditions of service set out by the Board of the Commission. service in the (2) The terms and conditions of service referred to in subsection (1) Commission. may provide for— (a) the appointment, promotion, dismissal and discipline of employees ; (b) appeals by employees against dismissal or other disciplinary measures ; and (c) the grant of pensions, gratuities and other retirement benefits to employees. (3) In this section, “appointment” includes secondment, transfer and contract appointments. (4) Employees of the Commission shall be “public officers” as defined in the Constitution of the Federal Republic of Nigeria. Cap. C23, LFN, 2004. (5) Employment by the Commission shall be subject to the provisions of the Pension Reform Act and officers and employees of the Commission shall be entitled to pension and other retirement benefits as prescribed under the Pensions Reform Act. Act No 4, 2014. (6) Nothing in subsection (5) shall prevent the Commission from appointing a person to an office on terms that preclude the grant of pension or other retirement benefits in respect of that office. 21. The Board of the Commission, in consultation with the National Salaries, Incomes and Wages Commission, shall determine and periodically review the remuneration and allowances payable to the employees of the Commission, having regard to the— (a) specialised nature of work to be performed by the employees of the Commission ; (b) need to ensure the financial self-sufficiency of the Commission ; and (c) remuneration and allowances paid within the petroleum industry to individuals with equivalent responsibilities, expertise and skills. 22.—(1) The Commission shall, not later than 30th of September of each year or such other date that the Minister responsible for Budget and National Planning may determine, prepare and present to the National Assembly, a statement of estimated income and expenditure of the Commission for the next financial year. (2) Notwithstanding the provisions of this section, the Commission may, in each financial year, submit to the National Assembly, supplementary or adjusted statements of estimated income and expenditure of the Commission. Remuneration and allowances of employees of the Commission. Statement of estimated income and expenditure of the Commission. A 144 2021 No. 6 Petroleum Industry Act, 2021 (3) The financial year of the Commission shall be a period of 12 calendar months commencing on the 1st of January in each year or such other date as the Minister of Finance may determine. Secretary to the Commission. 23.—(1) The Board of the Commission shall appoint a Secretary, who shall— (a) be the Legal Adviser to the Commission ; (b) attend meetings of the Board of the Commission and keep minutes, corporate records and the common seal of the Commission ; and (c) carry out such administrative and other secretarial duties as the Commission Chief Executive and the Board of the Commission may direct. (2) The Secretary shall be a legal practitioner with a minimum of 10 years post-qualification experience. Fund of the Commission. 24.—(1) The Commission shall maintain a Fund (in this Act referred to as “the Commission Fund”) into which money accruing to the Commission shall be paid and all expenditures of the commission shall be subject to appropriation by the National Assembly. (2) The source of the Commission Fund shall be as follows— (a) money appropriated by the National Assembly for the Commission ; (b) fees charged by the Commission for services rendered to licensees, lessees, permit holders and other authorisations issued by the Commission ; (c) cost of collection by the Commission ; (d) income derived from publications made by the Commission and other related activities, including data sales ; (e) fees paid to the Commission for using facilities owned or managed by the Commission ; and (f ) money accruing to the Commission by way of grants, aids, gifts, testamentary dispositions, endowments and contributions. (3) The Commission Fund shall be applied— (a) to meet approved budgetary obligations of the Commission ; (b) to meet administrative and operating cost of the Commission ; (c) to pay salaries, wages, fees or other remuneration or allowances, pensions and other retirement benefits payable to employees of the Commission ; (d) to acquire and maintain any property acquired by or vested in the Commission ; Petroleum Industry Act, 2021 2021 No. 6 (e) for investments, as provided under the Trustee Investments Act or any other applicable legislation, subject to the approval of Minister responsible for Finance ; and (f ) in connection with any of the functions of the Commission under this Act. (4) The Commission shall ensure that money accruing from royalties and rents charged under this Act or any subsidiary legislation made under this Act on royalties and rents are paid into the Federation Account. (5) At the end of each financial year, any money that accrued to the Commission Fund under subsection (2), which have not been utilised for the purposes provided under subsection (3), shall be paid into the Consolidated Revenue Fund. (6) The Commission may accept grants of money or property on such terms and conditions as may be specified by the person or organisation making the grant, provided that— (a) the terms and conditions of the grant are consistent with the objectives and functions of the Commission ; or (b) no such grant is accepted from any person or organisation regulated by the Commission. (7) Nothing in subsection (6) or under this Act shall be construed as authorising the Commission Chief Executive, commissioners, officer or employee of the Commission to accept any grant for their personal use. (8) The Commission shall keep proper accounts of its income and expenditure for each financial year and cause it to be audited within six months after the end of each financial year by auditors appointed by the Commission from a list of auditors approved in accordance with guidelines, supplied by the Auditor-General for the Federation. (9) The Commission shall submit to the Minister— (a) a mid-year report of its operations and finances not later than the 31st of August of each year ; (b) an annual report of its operations and performance ; and (c) an audited financial account for the year, not later than 31st of March of the following year. (10) The Commission shall, not later than the 31st of March of each year— (a) submit to the Minister a summary of its annual report and audited financial accounts ; and A 145 Cap. T22 LFN, 2004. A 146 2021 No. 6 Petroleum Industry Act, 2021 (b) publish the annual report and audited financial accounts on its website. (11) The provisions of any enactment relating to the taxation of companies or trust funds shall not apply to the Commission. Notice to the Commission. 25.—(1) Any Government ministry, department or agency exercising any power or function or taking any action, which may have direct impact on upstream petroleum operations shall consult with the Commission prior to— (a) issuing any regulation, guideline, enforcement order or directive ; (b) exercising any such power or function ; or (c) taking any such action. (2) The Commission shall review the recommendations of the Government ministry, department or agency and communicate decision accordingly and such decision shall be complied with by the relevant Government ministry, department or agency. Special powers of the Commission. 26.—(1) The Commission shall in performing its functions under this Act have special powers to— (a) inquire, inspect, examine or investigate any business or activity relating to upstream petroleum operations under this Act, where it believes that illegal upstream petroleum operations are going on ; (b) conduct surveillance on crude oil and natural gas installations, premises and vessels where it believes that illegal upstream petroleum operations are going on ; (c) enter any upstream wellsite, plant, facility or place— (i) at which crude oil or natural gas is produced, handled or treated, or (ii) that is used in connection with any upstream wellsite, plant, facility or place where crude oil or natural gas is produced, handled or treated ; (d) enter at any reasonable time premises containing any records or property required to be maintained under this Act or related to the administration of upstream petroleum operations under this Act for the purpose of inspecting those records or that property ; (e) require any person or his agent, representative, partner, director, officer or employee engaged in upstream petroleum operations to— (i) answer any question that may be relevant to the inquiry, inspection, examination or investigation, and (ii) provide any required information contained in a computer hardware or software or any other data storage, processing or retrieval device or system used in connection with the business or activities relating to upstream petroleum operations under this Act ; Petroleum Industry Act, 2021 2021 No. 6 (f ) take any sample or carry out any test or examination as it may consider necessary in the performance of its functions ; (g) use any machinery, equipment, appliance or thing as it may consider necessary in the performance of its functions ; (h) remove for examination and copy anything that may be relevant to the inquiry, inspection, examination or investigation, including removing any computer hardware or software or any other data storage, processing or retrieval device or system, during which copyright and trade secrets shall be properly protected ; (i) in conjunction with the Nigeria Police or other law enforcement agencies, arrest with a warrant, any person reasonably believed to have committed an offence under this Act ; and (j) exercise any other power that may be conferred on it under any law or regulation. (2) An entity, person or agent, representative, partner, director, officer or employee of that entity or person under investigation by the Commission shall— (a) grant access to officers of the Commission with regard to any place, wellsite, plant, facility, upstream machinery, equipment, appliances or things that may be relevant to the investigation ; and (b) provide on request, any book, account, record, document, voucher, information and explanation relating to upstream petroleum operations as the officers of the Commission may require. (3) An entity, person or agent, representative, partner, director, officer or employee of that entity or person who fails to comply with subsection (2) commits an offence and is liable on conviction to— (a) a minimum fine of N5,000,000 or a term of five years imprisonment ; and (b) in the case of a continuous offence, to an additional minimum fine of N100,000 for each day during which the offence continues. (4) The Commission shall in the exercise of its powers under this section avoid undue hindrance of entities and persons engaged in lawful upstream petroleum operations. (5) The Commission can seal or close any premises or facility utilised for purpose of upstream petroleum operations if the licensee, lessee or permit holder is found to be in breach of the relevant provisions of this Act. A 147 Petroleum Industry Act, 2021 A 148 2021 No. 6 Special Investigation Unit. 27. The special powers of the Commission under section 26 of this Act shall be performed by the Special Investigation Unit of the Commission or any person authorised by the Commission. Indemnity of officers of the Commission. 28.—(1) The Commission Chief Executive, a commissioner or any officer of the Commission shall each 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. (2) Notwithstanding the provisions of subsection (1), the Commission shall not indemnify the Commission Chief Executive, a commissioner or any officer of the Commission for any liability incurred as a result of wilful misconduct or gross negligence. Establishment of the Nigerian Midstream and Downstream Petroleum Regulatory Authority. Application of this Part. Objectives of the Authority. PART IV—THE AUTHORITY 29.—(1) There is established the Nigerian Midstream and Downstream Petroleum Regulatory Authority (in this Act referred to as “the Authority”), which shall be a body corporate with perpetual succession and a common seal. (2) The Authority shall have the power to acquire, hold and dispose of property, sue and be sued in its own name. (3) The Authority shall be responsible for the technical and commercial regulation of midstream and downstream petroleum operations in the petroleum industry. 30. The objects and functions of the Authority in this Part are limited to midstream and downstream petroleum operations in the petroleum industry. 31. The objectives of the Authority shall be to— (a) regulate midstream and downstream petroleum operations, including technical, operational, and commercial activities ; (b) ensure efficient, safe, effective and sustainable infrastructural development of midstream and downstream petroleum operations ; (c) promote healthy, safe, efficient and effective conduct of midstream and downstream petroleum operations in an environmentally acceptable and sustainable manner ; (d) promote a competitive market for midstream and downstream petroleum operations ; (e) 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 ;