Nigerias oil industry threatened by petroleum industry bill. Nigerias senate, during its plenary session on 25 may 2017, passed the petroleum industry governance bill pigb or the bill following the recommendation of the joint committee of the national assembly on petroleum upstream, downstream and gas. Pdf on jan 31, 2016, adangor z and others published petroleum industry bill 2012 and the principle of vicarious liability of oil producing states and local. Nigerian senate passes petroleum industry governance bill the bill has gone through 5 sessions of the national assembly, beginning from the 4th assembly which was inaugurated in. By taiwo oyedele from sports to entertainment, tourism to technology, infrastructural development to industrialisation, and the list goes on nigeria is a country that is often celebrated more for her potentials than real achievements. The petroleum industry governance bill was passed at its third reading at the nigerian senate today may 25th, 2017. More accurate and defensible reporting methodology. Under qualified ownership in the united states, the land. Public regulation of the oil and gas industry in nigeria.
Bill has a bsee from the university of texas at austin. Canada is reputed to have one of the best oil and gas tax regimes in the world. Pdf the petroleum industry bill 2012 and the niger delta region. Senate passes petroleum industry governance bill the. Several stakeholders in nigerias oil and gas industry have emphasized the need for petroleum sector reforms in nigeria.
Corporation into distinct commercial entities and creates a regulator for the petroleum. We shall update you on the changes made to the bill and the next steps. Petroleum industry bill, challenge of oil and gas taxation in nigeria. Recovering of petroleum products f national petroleum emergency supply plan 181. For it to be the fuel that can go into a car or converted into plastics, it must go through a. The key objectives of the bill as stated in part 1 of the pib are. Pdf petroleum industry bill 2012 and the principle of vicarious. Nigerias proposed petroleum industry bill sets to increase taxes in such a way that energy companies claim further exploration is uneconomical, and overall production will likely decline by 25%. This thesis argues that certain tax measures in canadas oil and gas industry have.
Reducing consumption of petroleum products report, 2016. The bill still has to go through the house of representatives and the president. The petroleum industry bill pib, an omnibus law meant to regulate the entire sphere of the industry and repeal all current existing oil and gas legislation, had. Petroleum exploration, development and production bill, 2017 the petroleum exploration development and production bill, 2017 a bill for an act of parliament to provide a framework for the.
Overview of the petroleum industry petroskills training. Evaluation of the contribution of oil revenue on economic development in nigeria. Mining and petroleum industry political donations legislation amendment corruption risk reduction bill 2016 b2015121. Senate passes petroleum industry bill, pib vanguard news. The petroleum exploration, development and production bill, 2017 1571. Fiscal regime under the new petroleum industry bill. It is therefore our expectation that by their sponsorship of the first tranche the petroleum industry governance bill 2016, the 8th senate, and indeed the 8th.
If the house of representatives concurs, it could be signed into law. A bill for an act to provide for the governance and institutional framework for the petroleum industry and for other related matters commencement. The oil and gas industry overview and trends nrgi reader april 2015 this reader is intended for use in conjunction with the natural resource charter. The executive council of the federation fec on wednesday approved the new draft petroleum industry bill pib, saying the document would be delivered to the national assembly in the next couple. Pdf nigeria is a major oil and gas producing country. Despite the low price of crude oil since 20142015 and a maritime border dispute affecting the tano blocks, ghanas petroleum industry has developed at a steady pace. Led by the members of the industry reform committee, who authored the original draft of the bill and has been absorbed both by the nigeria national petroleum company nnpc and the ministry of. Petroleum products to conform with quality, safety and environment specification 180. The politics and crisis of the petroleum industry bill in. Pdf the politics and crisis of the petroleum industry bill in nigeria. Petroleum industry governance bill as passed by senate. Pengassan, commended the 8th senate and its joint committee on the petroleum industry governance bill, pigb, for the passage of pigb 2016. The bill deals with concerns about transparent management of the oil and gas sector.
It would be argued that requiring firms to engage in socially. The nigerian petroleum industry bill pib, which is currently being discussed in parliament, aims at reforming the oil industry. Enacted by the national assembly of the federal republic of nigeria part i objectives 1. Overview of bill the object of this bill is to reduce corruption risk, and ensure appropriate decisionmaking, by. Indeed, there are indications that the delay in the passage of a petroleum industry bill pib of some sort has resulted in a significant reduction in. Sanction for nonsubmission of daily output report by oil companies the department of petroleum resources dpr recently launched the national production monitoring system npms3. Nigerias senate passes the petroleum industry governance bill. It was followed by the second reading which took place on tuesday the 2nd of. The oil and gas industry natural resource governance.
The bill, which still needs to be passed by the house of representatives and assented to by the president of the frn before it becomes law, seeks to establish a framework for the creation of commerciallyoriented and profitdriven petroleum entities, to ensure. Increased transparency through the green fleet website. The implications of the regulatory uncertainties generated by the longstanding structural reforms of the nigerian petroleum industry in the past thirteen to fifteen years speaks for itself. An evaluation of the effect of the proposed fiscal terms on investment in the upstream sector. The framework for managing the upstream petroleum industry in ghana before the discovery of oil in commercial quantities was established and given legal backing by two main statutes, pndc law 64 which established gnpc and the petroleum exploration and. The bill is the first in a series of long awaited petroleum industry laws designed to reform the nigerian oil and gas industry. The pib is an executive bill for an act to provide for the establishment of a legal, fiscal and regulatory framework for the petroleum industry in nigeria and for related matters. Understanding the nigerian petroleum industry governance. Resources in the last quarter of 2016, with a view to reform and reposition the oil and gas industry. On september 14, 2016, some civil society groups in nigerias federal capital territory questioned the status of the petroleum industry bill pib which they said had been pending for 12 years.
Petroleum exploration and production law 2016 act 919. How much longer would the journey of the petroleum industry bill, pib that began in 2000 last. He left halliburton in 2000 to start a consulting company specializing in oilfield market research and new technology commercialization. Mining and petroleum legislation amendment package 2015. The case of nigeria petroleum industry bill pib that is poised, among other things, to embed regulatory regime readily comes into perspective. Introduction the first reading of the petroleum industry governance bill of 2016 pigb took place at the senate nigerias upper legislative chambers on the 22nd of march 2016. Over 3 million gallons of additional petroleum reduction in 2016.
Nigerian senate passes petroleum industry governance bill. An analysis of the nigerian petroleum industry bill 2012. Minister of state for petroleum, that the petroleum industry bill pib will be divided into 6 bills namely. The petroleum industry bill pib, an omnibus law meant to regulate the entire sphere of the industry and repeal all current existing oil and gas legislation, had struggled to see the light of day despite its. The petroleum amendment act, 2019, which seeks to transfer the rights and obligations of the petrocaribe development fund pdf to the government of jamaica, was passed in the senate on friday july 5. Reforming nigerias petroleum industry 3 the petroleum industry bills proposed fiscal regime 6 the petroleum host communities fund phcf and its ambiguities 10 environmental implications of passing the petroleum industry bill the following analysis was written and published over the period of august 2015. Iba new petroleum industry bill for nigeria debbie legall. Specifically, the bill seeks to unbundle the nigerian national petroleum. The petroleum industry bill 2012 pib seeks to ensure that the management and allocation of petroleum resources in nigeria and their derivatives are conducted in accordance with the principles of good governance, transparency and sustainable development in nigeria. Petroleum legislation amendment bill 2016 introduction and overview the purpose of the petroleum legislation amendment bill 2016 is to amend the petroleum and geothermal energy resources act 1967 pgera and the petroleum submerged lands act 1982 psla to. Mining and petroleum legislation amendment grant of coal and petroleum prospecting titles bill 2015 the grant of titles bill changes how the nsw government will identify and release new exploration and mining areas for coal and gas, and how the resources minister will assess and grant exploration and mining title applications. The petroleum industry governance bill pigb was passed by the senate on 25 may 2017. Automatic zoom actual size fit page full width 50% 75% 100% 125% 150% 200% 300% 400%. The nigerian senate thursday passed the petroleum industry governance bill, seventeen years after it was first introduced to the national assembly.
The bill still has to go through the house of representatives and the president to be. Bill has been active in spe and served numerous roles at both the local and national level. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. The nigerian senate passed the petroleum bodies called the upstream petroleum industry governance bill pigb on thursday, inspectorate the inspectorate and the 25 may 2017. Unlike its forerunner, the overly ambitious and much storied petroleum industry bill pib, which adopted an allencompassing approach to the reform of the operation. The petroleum industry governance bill kpmg nigeria. The petroleum industry governance bill pigb was passed by the. This is indeed a great development and right step in bringing sanity to the petroluem industry. Refining what comes out of the ground is not often a form of petroleum that can be used right away. In the long history of pursuing petroleum industry legislative reform in nigeria, this is the first time that a bill will be passed at the nigerian senate. New draft petroleum industry bill ready for national. Resources in the last quarter of 2016, with a view to reform and reposition.
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