Nigerian senate passes petroleum industry governance bill. An analysis of the nigeria petroleum industry bill2012. Three bills relating to the petroleum industry bill pib yesterday scaled second reading in the house of representatives. Nigerias oil industry threatened by petroleum industry bill. New bill unbundles nnpc, scraps pppra, dpr, others.
Petroleum industry bill passes second reading in house of. Subjects petroleum industry companies to the payment of companies income tax which they are currently exempt. The administration of the president, muhammadu buhari, plans to amend nigerias longstalled petroleum industry bill pib. Nigerias petroleum industry governance and institutional. Petroleum onshore amendment prohibit coal seam gas. 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 petroleum exploration, development and production bill, 2015 scope. The much anticipated petroleum industry bill 2012 the pib was. The petroleum industry governance bill pigb was passed by the senate on 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. In a much awaited development, after about a decade of political twists and turns, the nigerian senate has on 25 may, 2017, approved the petroleum industry governance 9ill s. Reform of nigerias oil and gas sector has been at the top of president muhammadu buharis agenda since assuming office in may 2015.
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. The key objectives of the bill as stated in part 1 of the pib are. Overview of bill the object of this bill is to amend the petroleum onshore act 1991. The executive council of the federation fec on wednesday approved the new draft petroleum industry bill pib, saying the document would be delivered. Refining what comes out of the ground is not often a form of petroleum that can be used right away. They include a bill for an act to provide for the governance and institutional framework for the petroleum industry and to establish a fiscal framework that encourages further investment in the petroleum industry while increasing accruable revenues to. Reforming nigerias petroleum industry 3 the petroleum industry bill s 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. Recently, the quarrel over the passage or nonpassage of the petroleum industry bill, pib, took me down memory lane. The current drive for transparency, due process and accountability in the nigerian petroleum industry derives mainly from the desire of stakeholders that further exploitation of petroleum resources in the country should maximally benefit the overall population rather than a minority.
The oil and gas industry natural resource governance. The nigerian senate thursday passed the petroleum industry governance bill, seventeen years after it was first introduced to the national assembly. Without having the opportunity of reading the full details of the proposed bill, my comments would be limited to the address of the minister of petroleum resources, dr. 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. Despite being drafted in 2007, the 223page petroleum industry bill pib has failed to become law, consequently creating uncertainty in the sector. Analysis of the current problems of russias oil and gas industry in the context of the main trends of global oil and. An analysis of the nigerian petroleum industry bill 2012. It was followed by the second reading which took place on tuesday the 2nd of. However, the world petroleum industry for many decades was characterized by lack of. Impacts of the oil and natural gas industry on the us economy in 2015, pricewaterhousecoopers llp. This is the passage of the first fragment of the comprehensive petroleum industry bill pib, which was broken into parts to. An evaluation of the effect of the proposed fiscal terms on investment in the upstream sector.
The petroleum exploration, development and production bill, 2015. If the house of representatives concurs, it could be signed into law. An act to establish the legal and regulatory framework, institutions and regulatory authorities for the nigerian petroleum industry, to establish guidelines for the operation of the upstream and downstream sectors, and for purposes connected with the same. Nigeria the petroleum industry bill and the future of nnpc. The petroleum industry bill and the future of nnpc by aaron sayne, paasha mahdavi, patrick r. Since its inception, the pib has been dogged by lack of political consensus and. Nigerian petroleum industry bill 2012 pdf establishment of the petroleum technical bureau. May 18, 2011 the petroleum industry bill pib is the result of a series of efforts by the federal government of nigeria government to reform the legal, regulatory and institutional framework of the nigeria oil and gas industry and ensure that the industry is able to meet the contemporary demands of a global energy sector, and the expectations. Senate passes petroleum industry governance bill the. Nigerias proposed petroleum industry bill sets to increase taxes in such a way that energy companies claim further exploration is uneconomical. Last week we reported that the president withheld his assent to the petroleum industry governance bill pigb. Senate passes petroleum industry bill, pib vanguard news. B 2016s main scope is the creation of a holistic regulatory framework for the oil and gas industry. For it to be the fuel that can go into a car or converted into plastics, it must go through a.
Introduces the nigerian hydrocarbon tax which replaces the ppta. Petroleum industry bill the petroleum industry draft bill 2009 long title. Increases royalty rates on the basis of acreage size, separates oil from gas as well as onshore from offshore operations for the purposes of taxation. The petroleum industry bill pib is the result of a series of efforts by the federal government of nigeria government to reform the legal, regulatory and institutional framework of the nigeria oil and gas industry and ensure that the industry is able to meet the contemporary demands of a global energy sector, and the expectations. 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.
Funding challenges and need to open new frontiers led to adoption of production sharing contracts psc. Iba new petroleum industry bill for nigeria debbie legall. The petroleum exploration, development and production. We shall update you on the changes made to the bill and the next steps. Although the tapering of large scale asset purchases by the fed is occurring, which will inevitably lead to increased shortterm rates, the energy sector should have a breakout year due to the other conditions being put into place.
Editorial the continued non passage of the petroleum industry bill pib is holding up the long awaited reform of the petroleum sector and if the country must move forward we challenge the. Jun 16, 2017 three bills relating to the petroleum industry bill pib yesterday scaled second reading in the house of representatives. The petroleum exploration, development and production bill. May 26, 2017 senate passes petroleum industry bill, pib. 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%. Tax to be payable notwithstanding any proceedings for. Issues with the nonpassage of the petroleum industry bill.
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. Here are nine questions to help you understand what the bill is all about. Journal of business and management sciences, 22, 4557. This is potentially welcome, yet the bill ultimately. At the time of our report, the news coverage had focused on the president rejecting the bill because it whittled down his powers. Petroleum onshore amendment prohibit coal seam gas bill 2015 b201501794. Penalties for offences by authorized and unauthorized persons 49. 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. Commission to give notice to interested parties retained 11. The senate passed the petroleum industry governance bill pigb, which is the first part of the petroleum industry bill pib pib has been in the works since the tenure of former president olusegun obasanjo who led nigeria between 1999 and 2007. The nigerian oil and gas industry and it was ni multisim 10 pdf recommissioned in year 2007. By the second quarter of 2015, the average for the oil and gas industry fell to minus 21. Global demand for liquid hydrocarbons will continue to.
May 25, 2017 recall that after inauguration of the 8th senate in 2015, the president of the senate had promised to, among other things, deliver the petroleum industry bill as well as make laws that would. Background pre 1993 unincorporated joint venture ujv predominant. Petroleum onshore amendment prohibit coal seam gas bill 2015. Since then, there have been various reports on the refusal of the president to assent to the first of four bills seeking to reform the nigerian oil. Host and impacted communities development trust shall be deemed to attach to the. 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. Issues with the nonpassage of the petroleum industry bill, pib. The petroleum industry governance bill was passed at its third reading at the nigerian senate today may 25th, 2017. Petroleum industry fiscal bill news latest breaking.
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. Apr 06, 2011 recently, the quarrel over the passage or nonpassage of the petroleum industry bill, pib, took me down memory lane. Decisions and orders made by the commission retained 10. Regulatory structure with the scope of the petroleum industry bill being divided into separate pieces of legislation, the p. They include a bill for an act to provide for the governance and institutional framework for the petroleum industry and to establish a fiscal framework that encourages further investment in the petroleum industry while increasing. My editors at tell had commissioned me to do a story on the comatose nigerian refineries. 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 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.