For a good few years, nigeria has been almost entirely reliant on their oil sector, with the industry accounting for a large percentage of the countrys gdp and total earnings. Pdf nigeria is a major oil and gas producing country. Passage of the petroleum industry governance bill the. The importance of this reform agenda cannot be overstated. My editors at tell had commissioned me to do a story on the comatose nigerian refineries. The lawmaker said with the passage of the bill, there will be a slim, focused yet robust framework for effective institutional governance of the petroleum industry. The bill proposes several solutions to some of the most pressing challenges facing the nigerian petroleum industry, and represents a massive piece of sector reform. 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. These pioneering efforts ended abruptly with the outbreak of the first world war in 1914.
The bill will replace nigerias main legislation in the oil and gas industry written in 1969 and nnpc decree of 1997. The much anticipated petroleum industry bill 2012 the pib was. Dynamics, controversies and wayforward ppt presentation pack of the main paper. It was followed by the second reading which took place on tuesday the 2nd of. The petroleum industry bill pib and the petroleum industry governance and institutional framework pingif bill 5 2. Jan 18, 2018 nigeria has moved closer to turning an oil industry bill into law after a 17 year struggle to complete the legislation which aims to increase transparency and stimulate growth in the countrys oil. Energy reforms in legislative limbo outline background the dream the proposed reforms the concerns, the realities conclusion background nigeria oil and gas. Nigeria has moved closer to turning an oil industry bill into law after a 17 year struggle to complete the legislation which aims to increase transparency and stimulate growth in the countrys oil.
No one would doubt that the taxation of severed mineral interests as well as oil and gas production is an important issue as governments hope to capitalize on this burgeoning industry, while maintaining an attractive environment for business expansion. May 25, 2017 the lawmaker said with the passage of the bill, there will be a slim, focused yet robust framework for effective institutional governance of the petroleum industry. Oil being the mainstay of the nigerian economy plays a vital role in shaping the economic and political destiny of the country. Going forward there is a clear need to reform nigerias petroleum laws. The petroleum industry bill was drafted in response to the overarching need to replace the old laws that governed the oil and gas industry for the past 50 years.
Petroleum industry bill latest breaking news from nigeria. This is the passage of the first fragment of the comprehensive petroleum industry bill pib, which was broken into parts to. Overview of the nigerian oil and gas industry free download as powerpoint presentation. Federal republic of nigeria petroleum host and impacted communities development bill 2018 a bill for. 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. If the house of representatives concurs, it could be signed into law. Pdf the petroleum industry bill 2012 and the niger delta region.
This is potentially welcome, yet the bill ultimately fails to offer a clear path to more effective management of nigerias stateowned oil enterprises. Issues with the nonpassage of the petroleum industry bill. Implications of nigerias draft petroleum fiscal policy nevertheless, the nigerian government needs to strike a balance between the countrys drive for increased oil revenue in the short term, and the long term guarantee of revenue from the major players in the industry through taxation. Nigerias petroleum industry bill natural resource governance.
Petroleum legislation and offshore analysis april 2016. Development of nigerias oil industry the advent of the oil industry can be traced back to 1908, when a german entity, the nigerian bitumen corporation, commenced exploration activities in the araromi area, west of nigeria. We can only hope for the quick passage of the relevant. The ministry of petroleum resources recently released the draft national petroleum fiscal policy npfp. An act to provide for petroleum host and impacted communities. Those familiar with the previous version of the pib, will. The nigerias petroleum industry bill has generated a lot of concern from all stakeholders in the industry. Nigerian extractive industries transparency initiative act. Key findings petroleum industry bill on the regulatory environment, there is no consensus among operators on the impact the draft petroleum industry bill pib which proposes changes to the tax regime, royalty structure and onshore operations will have on their business. Development of nigeria s oil industry the advent of the oil industry can be traced back to 1908, when a german entity, the nigerian bitumen corporation, commenced exploration activities in the araromi area, west of nigeria. The executive council of the federation fec on wednesday approved the new draft petroleum industry bill pib, saying the document would be delivered. Overview of the nigerian oil and gas industry natural. Nigeria has a total of 159 oil fields and 1481 wells in operation according to the department of petroleum resources. The petroleum industry governance bill was passed at its third reading at the nigerian senate today may 25th, 2017.
Nigeria petroleum industry bill and investment prospect in. The legislative framework regulating the nigerian oil industry, including the constitution of nigeria 1999, land. Retained a create efficient and effective governing institutions with clear and separate roles for the petroleum industry. Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream producing 5,100 bpd. Like the name implies, the npfp aims to provide a fiscal framework for nigerias oil and gas industry. Nigerian petroleum industry bill 2012 pdf establishment of the petroleum technical bureau. Petroleum industry governance bill 2017 15 republic of nigeria part i objectives retained 1.
Petroleum industry governance bill as passed by senate. Nigerian senate passes delayed oil industry governance bill. Nigeria is the largest oil and gas producer in africa. An analysis of the nigerian petroleum industry bill 2012. The paradox of the black gold 343 neither are provisions made for externalities that will produce adverse impacts on the oilbearing communities. Implications of nigerias draft petroleum fiscal policy. After years of delay, the senate on thursday passed the petroleum industry governance bill, inching closer to regulatory and business reforms in the nations oil and gas industry. Read all the latest news, breaking stories, top headlines, opinion, pictures and videos about petroleum industry bill from nigeria and the world on today.
Nigeria passes major oil reform bill after 17 year struggle. Although nigerias oil industry was founded at the beginning of the century, it was. The nigerian oil and gas industry and it was ni multisim 10 pdf recommissioned in year 2007. The petroleum industry bill pib which is the outcome of the oil and gas reform implementation committee ogic, set up by the administration of former president olusegun obasanjo in 2000, is aimed at legislating the proposed reforms in the nigerian. May 25, 2017 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 1999 under. The bill still has to go through the house of representatives and the president to be. Senate passes petroleum industry governance bill the.
The petroleum industry governance bill, the first of three bills that replaced previous proposals, is aimed at reforming the way nigerias oil and gas industry is. 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%. Industry response to the bill has been largely negative, however. 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. This is potentially welcome, yet the bill ultimately fails to offer a clear path to more effective management of. May 26, 2017 senate passes petroleum industry bill, pib. 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 industry fiscal bill news latest breaking. Petroleum industry in nigeria environmental issues, national environmental legislation and implementation of international environmental law. Petroleum industry fiscal bill news latest breaking stories. Nigeria the petroleum industry bill and the future of nnpc. Nigerias proposed petroleum industry bill sets to increase taxes in such a way that energy companies claim further exploration is uneconomical.
Senate passes petroleum industry bill, pib vanguard news. No one would doubt that the taxation of severed mineral interests as well as oil and gas production is an important issue as governments hope to capitalize on this burgeoning industry, while maintaining an attractive environment for. 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 1999 under. Industry is in need of reforms to remain competitive in order to attract relevant investments necessary for the growth of the industry and the nations economy. The national petroleum fiscal policy old wine in a new bottle. The bill is the first in a series of long awaited petroleum industry laws designed to reform the nigerian oil and gas industry. The national petroleum fiscal policy old wine in a new. The crude oil production in nigeria is estimated to witness a decline of approximately 7. The oil and gas sector accounts for 70% of nigerias tax revenue. Oil is a major source of energy in nigeria and the world in general. Iba new petroleum industry bill for nigeria debbie legall. The reason for the reform of nigerias oil and gas is beyond illusion.
The discovery was made by shellbp, at the time the sole concessionaire. Reacting to the passage of the bill, nigeria union of petroleum and natural gas workers, nupeng, and. Framework for the petroleum industry and for other. Read all the latest news, breaking stories, top headlines, opinion, pictures and videos about petroleum industry fiscal bill from nigeria and the world on today. It also discusses the labour issues in petroleum industry governance bill 2016. We shall update you on the changes made to the bill and the next steps. On 25th may 2017, nigerias senate passed the petroleum industry governance bill pigb, a new legal framework that seeks to reform how nigerias oil and gas industry is structured, regulated. Retained b establish a framework for the creation of. Dynamics, controversies and wayforward by comrade hyginus chika onuegbu jp, fca chairman, nupeng. Nigeria passes major oil reform bill after 17 year.
History of the nigerian petroleum industry oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of exploration. 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. Crude oil from the niger delta basin comes in two types. Nigerias oil industry threatened by petroleum industry bill. The new petroleum industry bill and taxation of petroleum. The passage of the petroleum industry governance bill pigb by the senate, the other day, represents a good starting point in the effort to.
Nigerian senate passes petroleum industry governance bill. The second part of the article will focus on the public regulation of the oil and gas industry in nigeria. The 2012 executive draft of the petroleum industry bill 2012 pib proposes to restructure the nigerian national petroleum corporation nnpc. Overview of the performance of the nigerian oil and gas. Also the requirement for professional bodies to certify foreign professionals who want to practice in nigeria is another way to ensure that only unavailable expertise is imported. 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. Pdf the politics and crisis of the petroleum industry bill in nigeria. Mar 07, 20 b exercise general supervisory functions over the affairs and operations of the petroleum industry. Public regulation of the oil and gas industry in nigeria. An act to provide for the governance and insfitufional. 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. May 25, 2017 the petroleum industry governance bill, the first of three bills that replaced previous proposals, is aimed at reforming the way nigerias oil and gas industry is regulated and funded.
An analysis of the nigeria petroleum industry bill2012. The nigerian content bill makes provisions that empower dpr to participate in the processing of expatriate quotas for cases involving the oil and gas industry. An evaluation of the effect of the proposed fiscal terms on investment in the upstream sector. The petroleum industry governance bill kpmg nigeria. It is fundamental necessity to assure the survival of the industry. To that end, this bill seeks to create efficient and effective. This is indeed a great development and right step in bringing sanity to the petroluem industry.
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