HeadlineLike Senate, Reps Pass Petroleum Industry Governance Bill

Like Senate, Reps Pass Petroleum Industry Governance Bill

BEVERLY HILLS, January 18, (THEWILL) – The House of Representatives, on Wednesday, passed the Petroleum Industry Governance Bill (PIGB) which provides for the governance and institutional framework for the petroleum industry and for other related matters, after third reading.

The bill which was passed by the Senate in may 2017 seeks to unbundle the Nigerian National Petroleum Corporation (NNPC), provides for the establishment of Federal Ministry of Petroleum Incorporated, Nigerian Petroleum Regulatory Commission, Nigerian Petroleum Assets Management Company and National Petroleum Company and Petroleum Equalisation Fund.

With the passage of the bill, a new regulatory agency known as Nigeria Petroleum Regulatory Commission, (NPRC) would take over the functions of Petroleum Inspectorate (PI), the Department of Petroleum Resources , (DPR) and the Petroleum Products Pricing Regulatory Agency (PPPRA) when signed into law.

The new Commission, among other things, will also administer and enforce policies, laws and regulations relating to all aspects of petroleum operations which are assigned to it under the provisions of the Act.

With the bill is signed into law, two new companies, Nigeria Petroleum Assets Management Company and National Petroleum Company, would be established with certain assets and liabilities of Nigerian National Petroleum Corporation, NNPC, while the National Petroleum Company, for instance, would operate as a full independent commercial entity.

In the PIGB, the Ministry of Petroleum Resources would be renamed Ministry of Petroleum Incorporated.

In the new bill, upon the recommendations of the new commission, Minister of Petroleum Resources can grant, amend, renew, extend or revoke any licence or lease required for petroleum or production, pursuant to the provisions of the Act or any other enactment.

The bill also proposed that when the Commission is created, it shall be vested with all assets, funds, resources and other movable and immovable property, which immediately before the commencement of operation of the new commission, were held by the PI, DPR and PPPRA.

In the bill, more powers will be vested on the Commission, as the President or the Minister of Petroleum Resources, who hitherto had such powers, would no longer have same.

The bill has significantly reduced the powers of the President and the Minister of Petroleum Resources in exercising control over the oil and gas sector.

The newly passed bill would help promote transparency and accountability in the administration of petroleum resources of Nigeria as well as foster a conducive business environment for petroleum industry operations.

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