President Muhammadu Buhari has reportedly sent the Petroleum Industry Bill 2020 to the National Assembly for it to be reviewed and passed.
The much-awaited bill has been in the works for about 20 years. The governing laws of Nigeria’s oil and gas exploration have not been properly updated since after independence in the 1960s.
The new Bill is said to propose the merging of the Nigerian National Petroleum Corporation (NNPC) and the Petroleum Products Pricing Regulatory Authority (PPPRA) into one, to be called the NNPC Limited. The Ministers of Finance and Petroleum will determine the National Oil Company’s assets and liabilities that will be inherited by the new firm.
The bill proposes the creation of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, to be known as “The Authority.”
It also proposes the establishment of an agency that will be responsible for the technical and commercial regulation of upstream petroleum operations, to be known as the Nigerian Upstream Regulatory Commission.
Excerpts from the bill as reported by Punch
Section 54 (1,2 and 3):
“The Minister (of Petroleum) and the Minister of Finance shall determine the assets, interests and liabilities of NNPC to be transferred to NNPC Limited or its subsidiaries and upon the identification, the minister shall cause such assets, interests and liabilities to be transferred to NNPC Limited.”
“Assets, interests and liabilities of NNPC not transferred to NNPC Limited or its subsidiary under subsection 1 of this section shall remain the assets, interests and liabilities of NNPC until they become extinguished or transferred to the government.”
“NNPC shall cease to exist after its remaining assets, interests and liabilities other than its interests, assets, and liabilities transferred to NNPC Limited or its subsidiaries under subsection 1 of this section shall have been extinguished or transferred to the government.”
Section 53:
[The minister shall] “within six months from the commencement of this Act, cause to be incorporated under the Companies and Allied Matters Act, a limited liability company, which shall be called Nigerian National Petroleum Company (NNPC Limited).”
“The minister shall be at the incorporation of NNPC Limited, consult with the Minister of Finance to determine the number and nominal value of the shares to be allotted which shall form the initial paid-up share capital of the NNPC Limited and the government shall subscribe and pay cash for the shares.”
“Ownership of all shares in NNPC Limited shall be vested in the government at incorporation and held by the Ministry of Finance incorporated on behalf of the government.”
Section 4 of the bill in parts:
“There is established the Nigerian Upstream Regulatory Commission (the commission) which shall be a body corporate with perpetual succession and a common seal.”
“The commission shall have the power to acquire, hold and dispose of property, sue and be sued in its own time. The commission shall be responsible for the technical and commercial regulation of upstream petroleum operations.”
Section 29 of the bill in parts:
“There is established the Nigerian Midstream and Downstream Petroleum Regulatory Authority (the Authority) which is a body corporate with perpetual succession and a common seal.”
“The Authority shall be responsible for the technical and commercial regulation of midstream and downstream petroleum operations in the petroleum industry.”
/strong%20and%20the%20strongPetroleum%20Products%20Pricing%20Regulatory%20Authority%20(PPPRA)/strong%20into%20one,%20to%20be%20called%20the%20strongNNPC/strong%20Limited.%20The%20Ministers%20of%20Finance%20and%20Petroleum%20will%20determine%20the%20National%20Oil%20Company's%20assets%20and%20liabilities%20that%20will%20be%20inherited%20by%20the%20new%20firm.The%20bill%20proposes%20the%20creation%20of%20the%20Nigerian%20Midstream%20and%20Downstream%20Petroleum%20Regulatory%20Authority,%20to%20be%20known%20as%20The%20Authority.It%20also%20proposes%20the%20establishment%20of%20an%20agency%20that%20will%20be%20responsible%20for%20the%20technical%20and%20commercial%20regulation%20of%20upstream%20petroleum%20operations,%20to%20be%20known%20as%20the%20Nigerian%20Upstream%20Regulatory%20Commission.Excerpts%20from%20the%20bill%20as%20reported%20by%20PunchSection%2054%20(1,2%20and%203):em“The%20Minister%20(of%20Petroleum)%20and%20the%20Minister%20of%20Finance%20shall%20determine%20the%20assets,%20interests%20and%20liabilities%20of%20NNPC%20to%20be%20transferred%20to%20NNPC%20Limited%20or%20its%20subsidiaries%20and%20upon%20the%20identification,%20the%20minister%20shall%20cause%20such%20assets,%20interests%20and%20liabilities%20to%20be%20transferred%20to%20NNPC%20Limited.”/emem“Assets,%20interests%20and%20liabilities%20of%20NNPC%20not%20transferred%20to%20NNPC%20Limited%20or%20its%20subsidiary%20under%20subsection%201%20of%20this%20section%20shall%20remain%20the%20assets,%20interests%20and%20liabilities%20of%20NNPC%20until%20they%20become%20extinguished%20or%20transferred%20to%20the%20government.”/emem“NNPC%20shall%20cease%20to%20exist%20after%20its%20remaining%20assets,%20interests%20and%20liabilities%20other%20than%20its%20interests,%20assets,%20and%20liabilities%20transferred%20to%20NNPC%20Limited%20or%20its%20subsidiaries%20under%20subsection%201%20of%20this%20section%20shall%20have%20been%20extinguished%20or%20transferred%20to%20the%20government.”/emSection%2053:%5BThe%20minister%20shall%5Dem%20“within%20six%20months%20from%20the%20commencement%20of%20this%20Act,%20cause%20to%20be%20incorporated%20under%20the%20Companies%20and%20Allied%20Matters%20Act,%20a%20limited%20liability%20company,%20which%20shall%20be%20called%20Nigerian%20National%20Petroleum%20Company%20(NNPC%20Limited).”/emem“The%20minister%20shall%20be%20at%20the%20incorporation%20of%20NNPC%20Limited,%20consult%20with%20the%20Minister%20of%20Finance%20to%20determine%20the%20number%20and%20nominal%20value%20of%20the%20shares%20to%20be%20allotted%20which%20shall%20form%20the%20initial%20paid-up%20share%20capital%20of%20the%20NNPC%20Limited%20and%20the%20government%20shall%20subscribe%20and%20pay%20cash%20for%20the%20shares.”/emem“Ownership%20of%20all%20shares%20in%20NNPC%20Limited%20shall%20be%20vested%20in%20the%20government%20at%20incorporation%20and%20held%20by%20the%20Ministry%20of%20Finance%20incorporated%20on%20behalf%20of%20the%20government.”/emSection%204%20of%20the%20bill%20in%20parts:em“There%20is%20established%20the%20Nigerian%20Upstream%20Regulatory%20Commission%20(the%20commission)%20which%20shall%20be%20a%20body%20corporate%20with%20perpetual%20succession%20and%20a%20common%20seal.”/emem“The%20commission%20shall%20have%20the%20power%20to%20acquire,%20hold%20and%20dispose%20of%20property,%20sue%20and%20be%20sued%20in%20its%20own%20time.%20The%20commission%20shall%20be%20responsible%20for%20the%20technical%20and%20commercial%20regulation%20of%20upstream%20petroleum%20operations.”/emSection%2029%20of%20the%20bill%20in%20parts:em“There%20is%20established%20the%20Nigerian%20Midstream%20and%20Downstream%20Petroleum%20Regulatory%20Authority%20(the%20Authority)%20which%20is%20a%20body%20corporate%20with%20perpetual%20succession%20and%20a%20common%20seal.”/emem“The%20Authority%20shall%20be%20responsible%20for%20the%20technical%20and%20commercial%20regulation%20of%20midstream%20and%20downstream%20petroleum%20operations%20in%20the%20petroleum%20industry.”/em){kind=link}