Petroleum Industry Act, 2021 PDF

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 Commiss...

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 ; Petroleum Industry Act, 2021 2021 No. 6 A 149 (f ) ensure compliance with applicable laws and regulations governing midstream and downstream petroleum operations ; (g) ensure crude oil supply for domestic refineries ; (h) determine, administer and ensure the implementation and maintenance of technical standards, codes, practices and specifications applicable to midstream and downstream petroleum operations pursuant to good international petroleum industry practices ; (i) implement Government policies for midstream and downstream petroleum operations as directed by the Minister and in accordance with this Act ; (j) promote, establish and develop a positive environment for international and domestic investment in midstream and downstream petroleum operations ; (k) ensure strict implementation of environmental policies, laws and regulations for midstream and downstream petroleum operations ; (l) develop and enforce a framework on tariff and pricing for natural gas and petroleum products ; and (m) implement such other policies and objectives as are consistent with the provisions of this Act. 32. The functions of the Authority shall be to— (a) regulate and monitor technical and commercial midstream and downstream petroleum operations in Nigeria ; (b) regulate commercial midstream and downstream petroleum operations, including— (i) petroleum liquids operations, (ii) domestic natural gas operations, and (iii) export natural gas operations; (c) determine appropriate tariff methodology, including for— (i) processing of natural gas, (ii) transportation and transmission of natural gas, (iii) transportation of crude oil, and (iv) bulk storage of crude oil and natural gas ; (d) setting cost benchmarks for midstream and downstream petroleum operations ; (e) provide pricing and tariff frameworks for natural gas in midstream and downstream gas operations and petroleum products based on the fair market value of the applicable petroleum products ; Functions of the Authority. A 150 2021 No. 6 Petroleum Industry Act, 2021 (f ) advise the Government, government agencies and other stakeholders on commercial matters relating to tariff and pricing frameworks ; (g) develop open access rules applicable to petroleum liquids and natural gas transportation pipelines, terminal facilities and bulk storage facilities ; (h) regulate the bulk storage, distribution, marketing and transportation pipelines of petroleum products ; (i) grant, issue, modify, extend, renew, review, suspend, cancel, reissue or terminate licences, permits and authorisations for midstream and downstream petroleum operations ; (j) monitor and enforce compliance with the terms and conditions of licences, permits and authorisations issued by the Authority ; (k) keep public registers of— (i) licences, permits and other authorisations issued by the Authority, and (ii) renewals, assignments, amendments, suspensions or revocations ; (l) 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 midstream and downstream petroleum operations ; (m) carry out enquiries, tests, audits or investigations and take other steps to monitor the midstream and downstream petroleum operations ; (n) ensure security of supply, development of the markets and competition in the markets for natural gas and petroleum products ; (o) ensure third party access to facilities under gas processing licences, transportation pipelines and transportation networks and midstream bulk storage facilities, where such facilities are operated for the account of the owner ; (p) develop rules for trading in wholesale gas supplies to gas distributors ; (q) establish customer protection measures in accordance with the provisions of this Act ; (r) publish decisions, directions or determinations of the Authority that have implications for customers and industry participants, together with the reasons for such decisions, directions or determinations which, in the opinion of the Authority, shall be published ; (s) promote the interests of customers with regard to midstream and downstream petroleum operations ; (t) promote the principles of economic development of infrastructure with regard to midstream and downstream petroleum operations ; Petroleum Industry Act, 2021 2021 No. 6 (u) promote competition and private sector participation in midstream and downstream petroleum operations ; (v) determine the domestic gas demand requirement and the crude oil required for the domestic crude oil supply obligation and ensure that economic and strategic domestic demands are met ; (w) regulate the supply, distribution, marketing and retail of petroleum products ; (x) administer and monitor strategic stocks of petroleum products ; (y) monitor the application of petroleum product prices, pricing formulae and frameworks ; (z) monitor market behaviour with respect to midstream and downstream petroleum operations ; (aa) identify, investigate and prevent abuse of dominant positions and restrictive business practice with regard to midstream and downstream petroleum operations ; (bb) establish, monitor, regulate and enforce technical, health, environmental and safety measures relating to midstream and downstream petroleum operations ; (cc) develop, specify and monitor technical and safety standards for wholesale marketing, processing plant, retail marketing and bunkering of petroleum products ; (dd) ensure the accuracy of metering pumps and related measurement facilities in midstream and downstream petroleum operations ; (ee) define and enforce approved standards and guidelines for the design, procurement, construction, operation and maintenance of plants, installations and facilities in the midstream and downstream petroleum operations ; (ff ) establish laboratories to provide data storage and testing, quality assurance and certification of crude oil, natural gas and petroleum products and regulate the activities of third party laboratories used in midstream and downstream petroleum operations ; (gg) keep and classify records, data and reports as may be prescribed in regulations or guidelines ; (hh) ensure the promotion of safety and development of midstream and downstream petroleum operations ; (ii) issue certificates of quality and quantity to exporters of crude oil, LNG and petroleum products ; (jj) implement and enforce compliance with laws, regulations and policies relating to midstream and downstream petroleum operations ; A 151 A 152 2021 No. 6 Petroleum Industry Act, 2021 (kk) establish parameters and codes of conduct for operators in the midstream and downstream petroleum operations ; (ll) monitor the financial viability of operators with respect to midstream and downstream petroleum operations ; (mm) develop, maintain and publish a database of midstream and downstream petroleum operations ; (nn) monitor and ensure that the quality of petroleum products sold in Nigeria conform to defined specifications ; (oo) establish, monitor and ensure compliance with the standards for the processing of petroleum products in Nigeria ; (pp) request information and documents relating to licenced activities, including pricing information and macro-economic data from any licensee or permit holder in midstream and downstream petroleum operations ; (qq) publish or direct licensees, lessees and permit holders to publish, in the interest of the public, information relating to midstream and downstream petroleum operations in accordance with applicable law or regulation ; (rr) regulate the domestic base price and the prices applicable to wholesale customers of the strategic sectors and gas distributors ; (ss) perform such other function as may be necessary to give effect to the provisions of this Act ; (tt) ensure and monitor performance parameters of industry players and the quality of service provided by servicing companies in the midstream and downstream petroleum industry ; and (uu) conduct studies relating to the economy and efficiency and effectiveness of the midstream and downstream petroleum industry. Regulations by the Authority. 33. Subject to section 216 of this Act, the Authority may make regulations— (a) concerning the processing, refining, transmission, distribution, supply, sale and storage of petroleum and petroleum products as well as other midstream and downstream petroleum operations ; (b) establishing those midstream and downstream petroleum operations to be subject to a licence or permit from the Authority ; (c) establishing the application criteria and procedure for licences and permits for midstream and downstream petroleum operations ; (d) establishing the procedure for review and approval of licence and permit applications for midstream and downstream petroleum operations ; (e) establishing the duration and conditions of licences and permits for midstream and downstream petroleum operations ; Petroleum Industry Act, 2021 2021 No. 6 (f ) concerning those licences and permits already in effect prior to the date of any regulations issued by the authority for midstream and downstream petroleum operations ; (g) establishing the conditions and procedures for the transfer, surrender, suspension or revocation of licences and permits for midstream and downstream petroleum operations ; (h) establishing the procedure for the modification of licences and permits for midstream and downstream petroleum operations ; (i) establishing the penalties and enforcement mechanisms in respect of breaches of the regulations issued by the Authority ; (j) monitoring processes for midstream and downstream petroleum operations ; (k) concerning the construction and operation of, and third party access to, infrastructure for midstream and downstream petroleum operations ; (l) concerning the production, transportation, and sale of petrochemicals and lubricants ; (m) concerning the national strategic stock ; (n) establishing tariffs for midstream and downstream petroleum operations ; (o) concerning domestic natural gas supply and demand; (p) concerning natural gas trading and export ; (q) ensuring the continuity and security of the supply of natural gas, crude oil, and petroleum products to customers ; (r) concerning rights of way and pertaining to surface rights ; (s) relating to the retail sale and distribution of petroleum products ; (t) concerning dispute resolution and customer protection ; (u) regulating pricing regimes for midstream and downstream petroleum operations ; (v) establishing fees payable to the Authority subject to section 3 (1) (j) of this Act ; (w) concerning competition and anti-competitive behaviour ; (x) establishing public and non-public registries in respect of licences, permits and authorisations issued by the Authority, to be maintained by the Authority ; and (y) any other matters as may be determined by the Authority under this Act which includes imposition of gas flare penalty arising from midstream operations which shall be for the credit of the Midstream and Downstream A 153 A 154 2021 No. 6 Petroleum Industry Act, 2021 Gas Infrastructure Fund, and shall be utilised for midstream and downstream gas infrastructure investment within the Host Community of a designated facility. Governing Board of the Authority. 34.—(1) There is established a Governing Board (in this Act referred to as “the Board of the Authority”), which shall be responsible for the policy and general administration of the Authority. (2) The Board of the Authority shall consist of— (a) one non-executive chairman ; (b) two non-executive members ; (c) the Chief Executive of the Authority (in this Act referred to as “the Authority Chief Executive”) ; (d) two other executive directors responsible for finance and accounts and distribution systems, storage and retailing infrastructure ; (e) one representative of the Commission not below the rank of executive commissioner ; (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 Authority under this section shall be made by the President and be subject to confirmation by the Senate, except for the appointments of ex-officio members under subsection (2) (e), (f ) and (g). (4) A person appointed under subsection (2) (a) and (b) shall have at least 15 years post-qualification 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) and section 41 (3) of this Act, a member of the Board of the Authority shall hold office for five years and may be reappointed for a further term of five years. (6) A non-executive Board member shall hold office on part-time basis. (7) The Board of the Authority may authorise in writing any executive director, committee of the Board of the Authority, the Authority Chief Executive or any other officer or employee of the Authority, to exercise any power or carry out any duty or function of the Authority under this Act or regulation made under this Act. Petroleum Industry Act, 2021 2021 No. 6 A 155 (8) The proceedings of the Board of the Authority and other ancillary matters shall be as prescribed by regulation made under this Act. 35. The Board of the Authority shall— (a) be responsible for the formulation of policy, supervision and giving strategic direction to the Authority ; (b) provide general guidance for the carrying out of the functions of the Authority ; (c) review and approve the business, strategic and operating plans of the Authority ; (d) consider and approve the annual budget of the Authority before submission to the National Assembly for appropriation ; (e) approve the management accounts and audited accounts of the Authority and consider the management letter from the external auditors ; (f ) determine the terms and conditions of service of employees of the Authority ; (g) recommend remuneration, allowances, benefits and pensions of employees of the Authority in consultation with the National Salaries, Incomes and Wages Commission, having regard to the— Functions of the Board of the Authority. (i) specialised nature of work to be performed by the Authority, (ii) need to ensure the financial self-sufficiency of the Authority, and (iii) remuneration and allowances paid in the private sector in upstream petroleum operations to individuals with equivalent responsibilities, expertise and skills ; (h) structure the Authority into such number of departments as it deems fit for the effective performance of the functions of the Authority ; and (i) performance of other functions as may be necessary for the efficient and effective administration of the Authority under this Act. 36.—(1) Executive directors of the Authority shall be paid from the funds of the Commission such remuneration and allowances as applicable. (2) The Authority shall comply with the policy and guidelines of the National Salaries, Incomes and Wages Commission regarding remunerations. 37. A member of the Board of the Authority may be suspended or removed from office by the President where the member— (a) is found to be— (i) unqualified for appointment under section 34 of this Act, Remuneration and allowances of members of the Board of the Authority. Suspension or removal of a member of the Board of the Authority. A 156 Act No 3, 2020. 2021 No. 6 Petroleum Industry Act, 2021 (ii) unqualified subsequent to his appointment, and (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 Authority ; (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 Authority 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 member of the Board of the Authority. 38. A non-executive member of the Board of the Authority may resign his appointment by giving two month’s written notice to the President. Vacancy on the Board of the Authority. 39. A vacancy on the Board of the Authority shall occur, where a member of the Board— Filling of vacancy on the Board of the Authority. 40. A vacancy on the Board of the Authority shall be filled by the appointment of another person in accordance with section 34 of this Act. (a) dies ; (b) is removed from office in accordance with section 37 of this Act ; (c) resigns from office ; (d) completes his tenure of office ; or (e) is incapacitated. Petroleum Industry Act, 2021 2021 No. 6 41.—(1) The Authority Chief Executive is the accounting officer and shall be responsible for the administration of the affairs of the Authority. (2) There shall be seven executive directors for the Authority, whose appointments shall comply with the Federal Character Commission Act subject to confirmation by the Senate with each responsible for one of the following— (a) Hydrocarbon Processing Plants, Installations and Transportation Infrastructure ; (b) Distribution Systems, Storage and Retailing Infrastructure ; (c) Health, Safety, Environment and Community ; (d) Economic Regulations and Strategic Planning ; (e) Corporate Services and Administration ; (f ) Finance and Accounts ; and (g) Midstream and Downstream Gas Infrastructure Fund. A 157 Authority Chief Executive and Executive Directors of the Authority. Cap. F7, LFN, 2004. (3) A person to be appointed as Authority Chief Executive and as an executive director of the Authority shall have extensive managerial, technical or professional knowledge of the midstream and downstream petroleum operations with a minimum of 15 years post-qualification cognate experience. (4) The Authority 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 director 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 Authority 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. (7) The President may, not later than 90 days prior to the expiration of the tenure of the Authority Chief Executive or an executive director, re-appoint the Authority Chief Executive or executive director or appoint another qualified person. (8) A person shall not be appointed as Authority Chief Executive, where the person— (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 ; Act No 3, 2020. A 158 2021 No. 6 Petroleum Industry Act, 2021 (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 Authority Chief Executive or as an executive director 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 Authority Chief Executive or as an executive director, 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, (v) been disqualified, or (vi) suspended from practising his profession by the order of a competent authority. Employees of the Authority. 42. The Board of the Authority shall determine the number of persons that shall be employees of the Authority. Terms and conditions of service in the Authority. 43.—(1) The employees of the Authority shall be subject to terms and conditions set out by the Board of the Authority. (2) The terms and conditions of service referred to in subsection (1) 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. Petroleum Industry Act, 2021 2021 No. 6 A 159 (4) Employees of the Authority shall be “public officers” as defined in the Constitution of the Federal Republic of Nigeria, 1999. Cap. C23, LFN, 2004. (5) Employment by the Authority shall be subject to the provisions of the Pensions Reform Act and officers and employees of the Authority 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 Authority from appointing a person to an office on terms that preclude the grant of pension or other retirement benefits in respect of that office. 44. The Board of the Authority, 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 Authority, having regard to the— (a) specialised nature of work to be performed by the Authority ; (b) need to ensure the financial self-sufficiency of the Authority ; and (c) remuneration and allowances paid within the petroleum industry to individuals with equivalent responsibilities, expertise and skills. 45.—(1) The Authority 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 Authority for the next financial year. Remuneration and allowances of employees of the Authority. Statement of estimated income and expenditure of the Authority. (2) Notwithstanding the provisions of this section, the Authority may also, in any financial year, submit to the National Assembly supplementary or adjusted statements of estimated income and expenditure of the Authority. (3) The financial year of the Authority 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. 46.—(1) The Board of the Authority shall appoint a Secretary, who shall— (a) be the Legal Adviser to the Authority ; (b) attend meetings of the Board of the Authority and keep minutes, corporate records and the common seal of the Authority ; and (c) carry out such administrative and other secretarial duties as the Authority Chief Executive and the Board of the Authority may direct. (2) The Secretary shall be a legal practitioner with a minimum of 10 years post-qualification experience. Secretary to the Authority. Petroleum Industry Act, 2021 A 160 2021 No. 6 Funds of the Authority. 47.—(1) The Authority shall maintain a Fund (in this Act referred to as “the Authority Fund”) into which money accruing to the Commission shall be paid. (2) The source of the Authority Fund shall be— (a) money appropriated by the National Assembly for the Authority ; (b) fees charged by the Authority for services rendered to licensees, lessees, permit holders and other authorisations issued by the Authority ; (c) 0.5% of the wholesale price of petroleum products sold in Nigeria, which shall be collected from wholesale customers ; (d) income derived from publications made by the Authority and other related activities, including data sales ; (e) fees paid to the Authority for using facilities owned or managed by the Authority ; and (f ) money accruing to the Authority by way of grants, aids, gifts, testamentary dispositions, endowments and contributions. (3) The Authority Fund shall be applied— (a) to meet the approved budgetary obligations of the Authority ; (b) to meet the administrative and operating cost of the Authority ; (c) to pay salaries, wages, fees or other remuneration or allowances, pensions and other retirement benefits payable to employees of the Authority ; (d) to acquire and maintain any property acquired by or vested in the Authority ; (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 Authority under this Act. (4) At the end of each financial year, any money that accrued to the Authority Fund under subsection (2), which have not been utilised for the purposes provided under subsection (3), shall be paid into the Consolidated Revenue Fund. (5) The Authority 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 Authority ; or Petroleum Industry Act, 2021 2021 No. 6 A 161 (b) no such grant is accepted from any person or organisation regulated by the Authority. (6) Nothing in subsection (6) shall be construed as authorising the Authority Chief Executive, directors, officer or employee of the Authority to accept any grant for their personal use. (7) The Authority 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 Authority from a list and in accordance with guidelines supplied by the Auditor-General for the Federation. (8) The Authority 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. (9) The Authority 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 (b) publish the annual report and audited financial accounts on its website. (10) The provisions of any enactment relating to the taxation of companies or trust funds shall not apply to the Authority. 48.—(1) Any Government ministry, department or agency exercising any power or function or taking any action, which may have direct impact on midstream or downstream petroleum operations shall consult with the Authority 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 Authority shall review the recommendations of the Government ministry, department or agency and communicate decision accordingly and the decision shall be complied with by the relevant Government ministry, department or agency. Notice to the Authority. Petroleum Industry Act, 2021 A 162 2021 No. 6 Special powers of the Authority. 49.—(1) The Authority shall in carrying out its functions under this Act have special powers to— (a) inquire, inspect, examine or investigate any business or activity relating to midstream or downstream petroleum operations under this Act, where it believes that illegal midstream or downstream petroleum operations are going on ; (b) conduct surveillance on petroleum liquids and natural gas installations, premises and vessels where it believes that illegal midstream or downstream petroleum operations are going on ; (c) enter any midstream or downstream wellsite, plant, facility or place— (i) at which petroleum liquids oil or natural gas is refined, processed, stored, handled or treated, or (ii) that is used in connection with any midstream or downstream wellsite, plant, facility or place where petroleum liquids or natural gas are refined, processed, stored, 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 midstream or downstream 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 midstream or downstream 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 midstream or downstream petroleum operations under this Act ; (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 midstream or downstream 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 ; (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 Petroleum Industry Act, 2021 2021 No. 6 A 163 (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 Authority shall— (a) grant access to officers of the Authority with regard to any place, wellsite, plant, facility, midstream or downstream 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 midstream or downstream petroleum operations as the officers of the Authority 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 imprisonment for five years, 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 Authority shall in the exercise of its powers under this section avoid undue hindrance of entities and persons engaged in lawful midstream or downstream petroleum operations. 50. The special powers of the Authority under section 49 of this Act shall be performed by the Special Investigation Unit of the Authority or any person authorised by the Authority. Special Investigation Unit. 51.—(1) The Authority Chief Executive, a director or any officer of the Authority shall each be indemnified out of the Authority Fund against any liability incurred in defending any proceeding against the Authority or brought against him in his official capacity. Indemnity of officers of the Authority. (2) Notwithstanding the provisions of subsection (1), the Authority shall not indemnify the Authority Chief Executive, a director or any officer of the Authority for any liability incurred as a result of wilful misconduct or gross negligence. 52.—(1) There is established the Midstream and Downstream Gas The Infrastructure Fund subject to appropriation by the National Assembly, which Midstream and shall be— (a) a body corporate with perpetual succession and a common seal ; and (b) reside in the Authority as prescribed in accordance with this Act. Downstream Gas Infrastructure Fund. A 164 2021 No. 6 Petroleum Industry Act, 2021 (2) The Midstream and Downstream Gas Infrastructure Fund shall have the power to acquire, hold and dispose of property, sue and be sued in its corporate name. (3) There shall be a Governing Council which shall supervise and make investment decisions for the Fund. (4) The Governing Council shall comprise the— (a) Minister, who shall be the Chairman of the Council ; (b) representative of the Central Bank of Nigeria not below the rank of a director ; (c) representative of the Ministry of Finance not below the rank of a director ; (d) Authority Chief Executive ; (e) Executive Director Midstream and Downstream Gas Infrastructure Fund ; (f ) three independent members, who shall be appointed by the President for a term of four years and may be reappointed for another four years and no more ; and (g) Legal Adviser of the Authority who shall serve as the Secretary to the Governing Council. (5) The Executive Director, Midstream and Downstream Gas Infrastructure Fund shall— (a) have extensive managerial, technical or professional knowledge of the midstream petroleum operations, and fund management or any other relevant industry with a minimum of 15 years’ post-qualification experience ; and (b) be responsible for project management and administration of the Midstream and Downstream Gas Infrastructure Fund. (6) The members referred to in subsection (4) (f) shall have extensive managerial, technical or professional knowledge of the midstream petroleum operations, fund management or any other relevant industry with a minimum of 15 years post-qualification cognate experience. (7) The source of the Midstream and Downstream Gas Infrastructure Fund shall be— (a) 0.5% of the wholesale price of petroleum products and natural gas sold in Nigeria, which shall be collected from wholesale customers and such levy shall be in addition to the levy provided for under section 47 (2) (c) ; Petroleum Industry Act, 2021 2021 No. 6 (b) funds and grants accruing from multilateral agencies, bilateral institutions and related sources dedicated partly or wholly for the development of infrastructure for midstream and downstream gas operations in Nigeria ; (c) interest, if any, payable in respect of money in the Midstream and Downstream Gas Infrastructure Fund ; (d) money received from gas flaring penalties by the Commission under section 104 (4) of this Act, shall be for the purpose of environmental remediation and relief of the host communities of the settlor on which the penalties are levied ; and (e) any other sum, freely donated or accruing to the Midstream and Downstream Gas Infrastructure Fund for development of infrastructure in midstream gas operations. (8) The Authority shall ensure the prompt payment of all such sums directly into the Midstream and Downstream Gas Infrastructure Fund’s Account. (9) The levy under section 52 (7) (a) of this Act shall become due within 21 days of the sale of petroleum products and natural gas sold in Nigeria, and the Authority shall, after consultation with the Council, make regulations for— (a) administration procedures ; and (b) penalties for— (i) late payment of the levy, (ii) non-payment of the levy, or (iii) submission of false information in respect of the levy. (10) The purpose of the Fund shall be to make equity investments of Government owned participating or shareholder interests in infrastructure related to midstream and downstream gas operations aimed at— (a) increasing the domestic consumption of natural gas in Nigeria in projects which are financed in part by private investment ; (b) encouraging private investment through risk sharing by participating initially in selected high risk projects and in such other equity investments that encourage investment in midstream and downstream gas infrastructure ; and (c) reducing or eliminating gas flare. (11) There shall be a Transaction Advisor, who shall be responsible for providing transaction advisory services, including technical and commercial evaluation of proposals, defining project screening criteria and profitability target for projects and any other duty as may be assigned by the Council on behalf of the Fund. A 165 A 166 2021 No. 6 Petroleum Industry Act, 2021 (12) The Transaction Advisor shall be selected on need basis through a competitive and transparent criteria specified by the Council and the selection process shall be managed by the Executive Director, Midstream and Downstream Gas Infrastructure Fund subject to the approval of the Council. (13) The Transaction Advisor shall, in performing his duties under subsection (11), submit report of his findings and recommendations to the Council. (14) The Midstream and Downstream Gas Infrastructure Fund shall be managed as follows— (a) the Council shall at the beginning of every financial year, approve the Midstream and Downstream Gas Infrastructure Fund’s programme of action with its cost implications and the Accountant-General of the Federation shall release the approved amount for that financial year, subject to appropriation by the National Assembly ; (b) the money in the Midstream and Downstream Gas Infrastructure Fund’s Account that is not utilised as prescribed under this Act shall be held or invested as the Council may direct ; (c) an annual statement of the Midstream and Downstream Gas Infrastructure Fund shall be prepared and submitted to the Council and Minister of Finance after three months of the end of the financial year to which they relate ; (d) a certified annual audited accounts of the Midstream and Downstream Gas Infrastructure Fund, together with a report on the operations of the Midstream and Downstream Gas Infrastructure Fund, shall be submitted to the Council within six months of the end of the financial year to which they relate ; and (e) a certified annual audited accounts of the Midstream and Downstream Gas Infrastructure Fund shall be published annually. (15) Earnings, interest and other income accruing from the equity investment made under subsection (10) shall be paid directly to the Midstream and Downstream Gas Infrastructure Fund’s Account. (16) Interest and other incomes accruing from the equity investment of the Midstream and Downstream Gas Infrastructure Fund can be re-invested in other secured low risk investments as approved by the Governing Council. (17) The members of the Governing Council shall be paid such allowances from the funds of the Midstream and Downstream Gas Infrastructure Fund in accordance with the approved guidelines by the Revenue Mobilization, Allocation and Fiscal Commission.