An act to provide for the exploration of petroleum from the territorial waters and the continental shelf of nigeria and to vest the ownership of, and all onshore and offshore revenue from petroleum resources derivable therefrom in the federal government and for all other matters incidental thereto. The petroleum act is the principal statute that governs petroleum operations, including exploration, production and use. Abill for an act toprovidefortheprohibition,prevention,detection,response,investigationandprosecutionof cybercrimes. The petroleum act and the licensing system state management and control of the industry is ensured through an extensive legislation that requires companies to obtain licences and approval from the competent authorities for all phases of petroleum activities.
Report the environmental guidelines and standards for the petroleum industry in nigeria egaspin 2002 please fill this form, we will try to respond as soon as possible. Storage of petroleum or petroleum products e distribution 179. P 10 lfn, 2004 and section 17 5 d of the oil pipelines act cap. Recovering of petroleum products f national petroleum emergency supply plan 181. Petroleum act 1998 is up to date with all changes known to be in force on or before 01 may 2020.
The ppta is all about taxation of profits from petroleum operations. The paper examines the nature of petroleum disputes in nigeria and. Act or any order made under section 11 of that act. Its main fiscal instrument is the petroleum profit tax ppt. The world has moved on from the 1959 oil industry environment that midwifed the petroleum profit tax act,ppta. Under the bill, the minister cannot create any new entities. Crown by virtue of the petroleum production act 1934 now petroleum act 1998. Public regulation of the oil and gas industry in nigeria. Nigerian national petroleum corporation act chapter n123 laws of the federal republic of nigeria 2004 arrangement of sections part i establishment of the corporation 1. Model psc under the petroleum act page 3 article 1 interpretation 1.
Nigeria 1969 petroleum act natural resource governance. This briefing does not include a detailed analysis of the fiscal provisions of pa 2015. Offences in connection with the distribution of petroleum products 6. The most important petroleum legislation in nigeria is the petroleum act, 1969, section 1 of which provides that the entire ownership and control of all petroleum in, under or upon any lands to which this section applies shall be vested in the state. Petroleum act an act to consolidate and amend the law relating to petroleum so as to make better provision for the exploration for, and the development and production of, petroleum, and for matters consequential or incidental thereto. The effect of petroleum profit tax on the profitability of. Petroleum act chapter p10 chapter 350 lfn 1990 laws of the federation of nigeria arrangement of sections 1. The finance act introduces changes to the companies income tax act, value added tax act, petroleum. 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.
Pdf the environmental guidelines and standards for the. The discovery was made by shellbp, at the time the sole concessionaire. This paper is essentially a critical appraisal of the scope, application and effect of section 11 of the nigerian petroleum act. An act to provide for the exploration of petroleum from the territorial waters and the continental shelf of nigeria and to vest the ownership of, and all onshore and offshore revenue from petroleum resources derivable therefrom in the federal government and for all other matter incidental thereto. The major investors in the petroleum industry are the international oil companies iocs, the principal legislation governing petroleum operations in nigeria is the petroleum profit tax act ppta of 2007. Oil exploration licences, oil prospecting licences and oil mining leases 3. In addition, norway is bound by international law and guidelines. This is an act that provides for the exploration of petroleum from territorial waters and the continental shelf of nigeria and to vest the ownership of, and all onshore and offshore revenue from petroleum resources in the federal government. Revised legislation carried on this site may not be fully up to date.
Tanzania petroleum act 2015 highlighted in this months energy briefing is the new petroleum act 2015 pa 2015 related to upstream, midstream and downstream petroleum activities. Implications of nigerias draft petroleum fiscal policy. Iran, the kingdom of kuwait, papua new guinea, bulgaria, ukraine, bangladesh and mozambique are additional examples of countries with a domanial legal system in the ownership of mineral resources. Republic of nigeria, 1999, as amended, the minister shall have the right of preemption of all petroleum and petroleum products obtained, marketed or otherwise dealt with under any license or lease granted under this act or any other enactment. Nigeria s total petroleum refining capacity is 445,000 barrels 70,700 m 3 per day, however, only 240,000 barrels 38,000 m 3 per day was allotted during the 1990s subsequently, crude oil production for refineries was reduced further to as little as 75,000 barrels 11,900 m 3 per day during the regime of sanni a. It is instructive that the finance miscellaneous provisions act no. In this context, decision 983 under the ospar convention is particularly important to the norwegian authorities. This is an act that provides for the exploration of petroleum from territorial waters and the continental shelf of nigeria and to vest the ownership of, and all onshore and offshore revenue from petroleum resources in the federal. Words underlined with a solid line indicate insertions in existing enactments.
Scope of the act companies in nigeria are generally taxed under the companies income tax act, 1990 while those engaged in petroleum operations are taxed specifically under the ppta. The act provides for the control of petroleum products in section 4. Cessation of petroleum activities and decommissioning are governed by chapter 5 of the petroleum act and chapter 6 of the petroleum regulations. Oil e xploration licences, oil prospecting licences and oil mining leases. An act to make provision for licences to be granted for the establishment and maintenance of pipelines incidental and supplementary to oilfields and oil mining and for purposes ancillary to such pipelines. However, in order to achieve this, amendments may need be made to the capital gains tax act which is the principal act. I a person may not a manufacture petroleum products without a manufacturing licence. Laws of guyana petroleum e xploration and production cap. Access authorisation has the meaning given in the act. Under the extant act, the minister has an absolute discretion to grant, amend, revoke and extend oil prospecting licenses and oil mining leases to applicants that satisfy statutorily prescribed conditions. Model production sharing contract under the petroleum act. Sep 15, 2017 report the environmental guidelines and standards for the petroleum industry in nigeria egaspin 2002 please fill this form, we will try to respond as soon as possible. Laws of guyana petroleum e xploration and production 3. Petroleum act 1998 is up to date with all changes known to be in force on or before 14 february 2020.
Section 2 this act shall come into force on the day following the date of its publication in the. The principal act governing the taxation of petroleum operations in the upstream sector in nigeria is the petroleum profit tax act ppta 42 as amended. Petroleum products to conform with quality, safety and environment specification 180. Accounting records has the meaning given in clause 1. There are changes that may be brought into force at a future date.
Petroleum act,6 which vests ownership of all petroleum resources of nigeria in the state and stipulates a domestic obligation for international oil companies, requiring upstream producers to subsidize the local refineries by selling around 8 per cent of their crude oil production at a price of about. Acts and regulations department of petroleum resources. Petroleum drilling and production amendment regulations, 2003 petroleum drilling and production regulations petroleum act petroleum act cap. Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream producing 5,100 bpd. Changes and effects are recorded by our editorial team in lists which can be found. 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. Downstream gas operations are taxed under the companies income tax act. An act to consolidate certain enactments about petroleum, offshore installations and submarine pipelines. Establishment of the nigeria national petroleum corporation 1 there shall be established a corporation by the name of the nigerian national petroleum corporation in this act referred to as the corporation which shall be a body corporate with perpetual succession and a common seal and may sue or be sued in its corporate name. Petroleum and gas production and safety act 2004 page 2. The principal legislation applicable to petroleum operation in nigeria is the petroleum profits tax act ppta which became operative on 1st january 1958. Offences in connection with the distribution of petroleum products. States and local government councils lg which comprise the second and third tiers of government were encouraged under decree 59 of 1992 to set up their own environmental protection agencies. The minister may, for the purposes of this act, by.
The bureaucratic delays that accompany the legislative passage of amendments could effectively pose a challenge to this proposal. The company will be governed and managed based on the provisions of the companies and allied. Regulatorthe national petroleum regulatory commission nprc or the commission the nprc which replaces the current department of petroleum resources dpr, the petroleum inspectorate and the petroleum products pricing regulatory agency pppra shall be. This paper examined this act, which is in fact one the many tax heads, under which different arms of the government levy charges to the petroleum industry. Act to amend the petroleum products act so as to define certain expressions and to. Contents petroleum and gas production and safety act 2004 page 5 79 obligation to lodge proposed later work program. If treats the modes of strategies sate or distribution of petroleum products that cannot be done without the license. Establishment of the nigerian national petroleum corporation. Laws of the federation of nigeria petroleum act 1990. Scope of the act companies in nigeria are generally taxed under the companies income tax act, 1990 while those engaged in petroleum. Iocs, the principal legislation governing petroleum operations in nigeria is the petroleum profit tax act ppta of 2007.
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