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Industry Bill
Dr. Adeoye Adefulu
Odujinrin & Adefulu
Barristers Solicitors & Notaries Public
Barristers, Solicitors & Notaries Public
Lagos – Abuja – Port‐Harcourt
Outline
• Background
• NNPC Ltd.
NNPC Ltd.
• IJVs
• Upstream Licensing
• Environmental matters
Environmental matters
• Institutional Framework
Odujinrin & Adefuluestd. 1972
Background
– Thrust of the reform is to:
• Clearly separate the government functions in the oil
industry – policy, regulatory and commercial
• Create a stronger National Oil Company modeled after
St t il P t
Statoil, Petronas etc with more independence to invest
t ith i d d t i t
in local production as well as foreign markets
Odujinrin & Adefuluestd. 1972
NNPC Ltd.
NNPC Ltd.
• NNPC to be corporatised
– All assets and liabilities of NNPC to be transferred
(s.137)
• Except PSC assets
Except PSC assets
– How will it be funded?
• Certain
Certain moneys to be retained by the government
moneys to be retained by the government
under law‐ would it apply?
Odujinrin & Adefuluestd. 1972
IJV
• Should they be created by negotiation or
g
legislation?
• No provisions as to transfer of assets &
liabilities
– Stamp duties issues
– How will the assets be held?
– Will transfer of OMLs require ministerial consent?
q
– Will JV companies be able to book assets
Odujinrin & Adefuluestd. 1972
Licensing
• Sections 4 & 257 empowers minister to grant
licenses
– PPL & PML
• May
May only be granted to indigenous oil
only be granted to indigenous oil
companies
– Not less than 60% shareholding by Nigerians
– Must be ratified by the Inspectorate or Directorate
y p
Odujinrin & Adefuluestd. 1972
Licensing (contd.)
Licensing (contd.)
• Minister grants licenses on the
recommendation of NPD
• NPD to conduct licensing rounds
– No more discretionary awards
N di ti d
– No explicit link between power of the Minister to
award licences and NPD bid rounds
Odujinrin & Adefuluestd. 1972
Environmental Matters
Environmental Matters
• Requirement to conduct environmental
p g
programmes or environmental quality
q y
management programmes
– No distinction between the two
No distinction between the two
• This appears to be in addition to the EIA
requirements
• EP/EQMP regime under Inspectorate while EIA
EP/EQMP regime under Inspectorate while EIA
regime under Ministry of
Environment/NESREA
Odujinrin & Adefuluestd. 1972
Institutional Framework
Institutional Framework
• Creation of NPD, NPI, NAPAMA amongst
others
• Regulatory functions not fully separated
– Several references to functions to be carried out
S l f t f ti t b i d t
by NPD or NPI
– Should a policy body hold acreage?
• PSC
• Is there a need for NAPAMA
Odujinrin & Adefuluestd. 1972
Questions?
Dr Adeoye Adefulu
adeoye.adefulu@odujinrinadefulu.com
Odujinrin & Adefulu
Barristers, Solicitors & Notaries Public
Lagos – Abuja – Port‐Harcourt
Odujinrin & Adefuluestd. 1972