Tag: Pia

  • INC decries non legislative harmonisation of PIA, Solid minerals Acts

    INC decries non legislative harmonisation of PIA, Solid minerals Acts

    The Ijaw National Congress (INC), has decried the non harmonisation of the Petroleum Industry Act (PIA) 2021 with the Solid Minerals Act.

    Prof. Benjamin Okaba, Global President INC worldwide while briefing the media on Saturday in Abuja described the development as a “systemic injustice” against the people of the Niger Delta.

    He explained that the INC was compelled to address the issue in view of the “stark and discriminatory” disparity in the governance of the two sectors by their various Acts.

    He noted that a comparative analysis revealed not a simple difference in administrative approach, but a deliberate and calculated legislative framework designed to militarise, plunder, and marginalise the Niger Delta while affording other regions a gentler, more equitable regime for their resources.

    He said that the evidence was irrefutable as the PIA  Act 2021 and the Mining Act 2007 when read side-by-side, revealed a “Nigeria that operates a two-tiered system of resource justice”

    The INC global president listed areas of legislative disparities against the Niger Delta region to include host community benefits, policy area, environmental remediation, security approach resource control and revenue allocation.

    According to him, in view of the evidence, it is therefore imperative for a legislative harmonisation of both Acts, and called for the immediate legislative harmonisation.

    “The National Assembly must initiate an amendment to the PIA to bring its community benefit provisions, environmental obligations, and ownership principles in line with the more equitable standards of the Nigerian Minerals and Mining Act. This includes, as a minimum, a review of the three per cent and 30 per cent allocations.

    “The Federal Government must immediately withdraw the Joint Task Force from the Niger Delta and adopt a civil and regulated security approach, consistent with the approach in the solid minerals sectors.

    “The long-term solution to this perennial crisis is a return to the practice of true federalism and derivation-based resource control, as practiced in the First Republic, where regions managed their resources for their development.

    “The Niger Delta is not a colony of Nigeria. We can no longer accept laws that treat our people and our environment as sacrificial lambs for national unity.”

    He explained tht the PIA offered three per cent of annual operational expenditure from oil companies for host communities, but the Mining Act mandates that operators conclude a Community Development Agreement (CDA) with their hosts, addressing scholarships, employment, infrastructure, and enterprise development.

    He added that the three per cent was rejected by the Niger Delta region because the region viewed as insulting given the decades of monumental environmental devastation and socio-economic neglect.

    “Furthermore, this contribution is not from profit but from operational cost, and it is mandated to be managed through a Trust Fund, effectively sidelining elected state governments and traditional institutions, reducing them to “siddon lookers” in the words of Bayelsa State’s Deputy Governor.

    “Crucially, the Act imposes a collective punishment clause, holding entire communities financially liable for vandalism of oil assets, a provision that is unjust, unconstitutional, and inflammatory, but in contrast, there is no collective punishment clause in the mining act.

    “While the PIA reinforces the total federal ownership of oil, the Mining Act, though also declaring federal ownership, has historically tolerated artisanal and small-scale mining by individuals and cooperatives across northern and western states,” he said.

    According to him, this operational laxity grants a de facto economic participation that is ruthlessly denied to the people of the Niger Delta.

    “Also the approach to environmental protection and remediation further highlights the bias, because in spite of the PIA’s provisions against gas flaring, it includes a dangerous loophole allowing the Minister to permit it, rendering the prohibition weak.

    “The environmental degradation from decades of oil spills and gas flaring has been catastrophic, destroying livelihoods and poisoning our ecosystem.

    “Meanwhile in the solid minerals sector, the Mining Act explicitly requires license holders to minimise environmental impact and rehabilitate mined land to its natural or predetermined state .

    “While enforcement is a challenge, the legal obligation is clear and unequivocal, lacking the ministerial loopholes present in the PIA.”

    Okaba further said that with the government deployment of the Joint Task Force (JTF) Operation Restore Hope since 2002 to secure oil infrastructure and prevent local refining, communities in the region had been turned into war zones.

    “Our people are subjected to human rights abuses, all to protect oil assets while denying us the benefits from them.

    “However there is no JTF in mining states. In spite of widespread illegal mining, the federal government only announced plans for mining marshals as recently as March 2024, and even that has not been fully activated.

    “This represents a deliberate non-militarisation of the solid minerals sector, allowing for a more permissive environment that stands in stark contrast to the repression in the Niger Delta.

  • NUPRC denies violating oil licencing guidelines

    NUPRC denies violating oil licencing guidelines

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), said that no oil licensing guidelines violations occurred during the 2024 oil block licensing round.

    The commission stated that the process was conducted in strict compliance with the Petroleum Industry Act (PIA) and its own licensing guidelines, ensuring a transparent, competitive and technology-driven bidding exercise.

    Mr Gbenga Komolafe, the chief executive of NUPRC made the explanation in a statement on Thursday in Abuja.

    Komolafe said that eligibility was determined by a rigorous assessment of technical expertise, financial strength and legal compliance.

    He said, contrary to claims that a particular company registered days before the commencement of bidding and was improperly awarded oil blocks, guidelines did not restrict participation based on a company’s incorporation age.

    “The technical and financial capacity of a bidder was assessed not merely by the date of incorporation of the bidding entity, but by proven track records of its promoters, affiliated companies or parent organisations.’’

    This approach, he said allowed newly formed Special Purpose Vehicles (SPVs), when backed by credible and experienced industry players, to compete effectively and fairly.

    “The 2024 licensing round involved multiple stages, including pre-qualification, technical evaluation and commercial bid evaluation.

    “Applicants were required to demonstrate financial capability, technical expertise and legal compliance by submitting detailed documentation, such as incorporation papers, tax clearances and proof of operational experience.

    “The pre-qualification window was open with no restrictions on company age. The commercial bidding phase was carried out digitally using encrypted technology to ensure the integrity and confidentiality of the data.

    “The results were announced transparently and publicly, featuring live televised sessions that were observed by stakeholders, including the Nigerian Extractive Industry Initiative (NEITI) and relevant government ministries.

    “The commercial bid evaluation was conducted using a transparent, digital and point-based assessment system, which included signature bonus, proposed work programme financial commitments and work performance security,’’ he said.

    He highlighted that indigenous oil companies aggressively participated and out-bided some national and international players, reflecting strong investor confidence following the enactment of the PIA 20211.

    Komolafe said that the 2024 oil block licensing round, adhered fully to all statutory provisions and guidelines, with no discrimination or corrupt practices involved.

    “The NUPRC remains committed to transparent regulation aimed at optimising Nigeria’s hydrocarbon resources and attracting investment under President Bola Tinubu’s administration,” he said.

    He reiterated the commitment of the commission to maintain an open dialogue, while upholding a strong and transparent regulatory regime that would benefit all Nigerians.

    Komolafe, underscored the importance of ensuring that reports on the operational activities of the commission were contextual, fact-checked and aligned with the statutory provisions under the PIA, 2021 and its regulations.

  • 25 firms win FG oil licences – NUPRC

    25 firms win FG oil licences – NUPRC

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says 25 oil bidders emerged at the 2024 oil licensing bid round.

    The Chief Executive of NUPRC, Mr Gbenga Komolafe, announced the winners at the licensing round commercial bid conference held in Lagos on Wednesday.

    The winners that emerged after a competitive bidding include Sifax and Royal Gate Consortium, and Oceangate Engineering Oil and Gas Ltd.

    Both won the bids for PPL 300-DO and PPL 302-DO respectively, having emerged as the sole bidders in the categories.

    For PPL 303-DO, two bidders, MRS Oil and Gas Company Ltd., and NNPC Exploration and Production Ltd., qualified and had a tie in the bidding, but MRS Oil and Gas emerged the winner.

    In PPL 304-DO, Homeland Integrated Offshore Services Ltd. edged out Sifax and Royal Gate Consortium to emerge the winner. Hamilcar Oil and Gas Consortium won the bid for PPL 305-DO ahead of NNPC E&P.

    BISWAL Oil and Gas Ltd. won in the PPL 306-DO bid, beating NNPC E&P Ltd.

    Petroli Energy Marketing and Supply Ltd. won the PPL 269, Sahara Deepwater Resources Ltd. won PPL 270, while Sahara Deepwater also won the PPL 271 Licence.

    Totalenergies, with a 126 points, emerged winner in the PPL 2000/2001, beating Star Deepwater Petroleum Ltd. that scored 125 points.

    For PPLs 2002, 2003, 2004, 2005, and 2006, BISWAL Oil and Gas; First E & P Development Company; Dewayles International Ltd.; Applefield Oil and Gas Ltd. and First E&P Development Company Ltd., respectively won the licences, having been the sole bidders in their respective categories.

    Similarly, PPLs 2007, 2008 and 3007 went to R28 Holdings Ltd., Tulcan Energy E & P Company Ltd. and Oceangate Engineering Oil and Gas Ltd.

    Broron Energy Ltd. won PPL 2009, while PPLs 3011, 3012, 3015, 3016 and 3017, were all won by sole bidders including: R28 Holdings,Tulcan Energy E &P Company Ltd., Panout Oil and Gas, Hakilat Oil and Gas Consortium Ltd., and Applefield Oil and Gas respectively.

    Komolafe also announced that there would be another oil licensing bid round in 2025.

    According to him, the commission decided to make licensing rounds an annual exercise to boost oil production.

    “While we are proud of our recent achievements as industry stakeholders, we must remain mindful of the challenges ahead.

    “Declined production levels and failed global competition demand strategic action. Interestingly, the Petroleum Industry Act has given us a unique opportunity to transform the industry, attract investments and position Nigeria as a forefronter.

    “To this end, I am pleased to announce that the NUPRC will launch another licensing round in the year 2025.

    “Building on the lessons learned from this year’s round, the 2025 exercise will focus on discovered and undeveloped fields, fallow assets and prioritise natural gas development to support Nigeria’s commitment to UN Sustainable Development Goals,” he added.

    Komolafe said the regulator’s commitment had been to restore investors’ confidence in the industry.

    According to him, NUPRC has done so diligently by ensuring that its activities are in alignment with the provisions of the Petroleum Industry Act.

    “What we are doing here today is not a matter of discretion by the commission or the statutory provisions of the Petroleum Industry Act.

    “The statutory provisions of the Petroleum Industry Act provide that the commission should conduct licensing rounds.

    “The law did not make it annual, but to ensure that we grow, preserve and optimise our hydrocarbon resources, as I said, we are committed to annual licensing rounds. And that’s why I said that after this (2024) exercise, we will commence another one in 2025,” he emphasised.

    The NUPRC boss added that the commission had started the recovery of idle assets based on the ’drill or drop’ provision of the Petroleum Industry Act.

    “There is a provision in the Petroleum Industry Act that speaks to ‘drill or drop’. So, we have been having engagements with the industry to ensure that unexplored areas and resources are harvested back into the basket; and we have done this.

    “We intend to rebuild those idle assets because a lot of our assets remain idle and that is not the intent of the Petroleum Industry Act.

    “So, as a commission and as a regulator, we have started activating the drill or drop provisions of the Petroleum Industry Act, which is intended to ensure that our assets do not just remain idle.

    “So, we are harvesting them into the basket, and we will ensure that they go for bidding to interested bidders in the next licensing round,” he stated.

  • NUPRC set for 2025 oil licensing bid round – CEO

    NUPRC set for 2025 oil licensing bid round – CEO

    Mr Gbenga Komolafe, Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), says a new round of oil licensing bid will take place in 2025.

    Komolafe made the announcement as the commission approaches the conclusion of the ongoing 2024 Licensing Round Commercial Bid Conference in Lagos on Wednesday.

    He said that the commission intends to make licensing rounds an annual event to boost oil production.

    The 2025 round, he said, would focus on unexplored assets, signaling the country’s commitment to further harnessing its vast oil and gas potential.

    Speaking about the current 2024 licensing round, which began in May, Komolafe emphasised its significance for Nigeria’s oil and gas sector.

    “This licensing round offers a total of 31 blocks—24 newly selected and seven deep offshore blocks carried over from the 2022 Mini Bid Round—spanning onshore, shallow water, and deep offshore terrains.

    “These blocks represent enormous potential for boosting Nigeria’s economic growth, enhancing energy security, and driving technological advancements,” he said.

    The NUPRC boss said that the 2024 round was particularly historic, being the first since the enactment of the Petroleum Industry Act (PIA) in August 2021.

    Komolafe said that the event was seen as a crucial step in positioning Nigeria as a global energy player, with the winners of the licensing round revealed through an open and transparent process.

    “With over 209 trillion cubic feet of natural gas reserves and more than 37 billion barrels of oil reserves, Nigeria remains one of the world’s most resource-rich nations, yet much of its potential remains untapped,” he said.

    The NUPRC chief executive said further that the current licensing round aimed to unlock these resources, enhance production, and expand natural gas utilisation opportunities.

    “The 2024 round is designed with investor-friendly terms, streamlined block allocations, and a strong focus on local content development.

    “It also emphasises sustainability, ensuring that all exploration and production activities adhere to global best practices and environmental stewardship,” he said.

    According to Komolafe, Nigeria’s oil and gas sector is poised for transformation, driven by the support of the PIA and Presidential Executive Orders.

    He expressed confidence that the country was well-positioned to attract investment and achieve early exploration and production milestones.

    The NUPRC chief stressed that the 2024 Licensing Round was more than just a commercial initiative.

    He said that it is a transformative opportunity for Nigeria to harness its energy resources, stimulate economic growth, and attract new investments to the sector.

    Looking ahead, Komolafe said that NUPRC was already preparing for the 2025 licensing round, which would focus on natural gas and underdeveloped fields.

    “This continued effort demonstrates Nigeria’s commitment to energy security, economic growth, and meeting the global demand for sustainable energy.

    “The 2024 Licensing Round marks a bold declaration that Nigeria is ready for business. The country is poised to continue its journey toward becoming a leading player in the global energy market.

    “As the 2024 licensing round progresses, bidders will soon learn the outcome of their applications,” the commission’s chief executive said.

  • Dangote’s application spells doom for Nigeria if granted – Oil marketers tell court

    Dangote’s application spells doom for Nigeria if granted – Oil marketers tell court

    Three oil marketers have prayed a Federal High Court in  Abuja to dismiss a suit filed by Dangote Petroleum Refinery and Petrochemicals.

    The oil marketers, in a joint counter affidavit marked: FHC/ABJ/CS/1324/2024 filed in response to Dangote Refinery’s originating summons, told Justice Inyang Ekwo that granting that application would spell doom for the country’s oil sector.

    According to them, the plan to monopolise the oil sector is a recipe for disaster in the country.

    The three marketers; AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited, in their response, said the plaintiff did not produce adequate petroleum products for the daily consumption of Nigerians.

    Besides, they argued that there was nothing placed before the court to prove the contrary.

    Dangote Refinery had sued Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigeria National Petroleum Corporation Limited (NNPCL) as 1st and 2nd defendants.

    Also listed as 3rd to 7th defendants respectively in the originating summons dated Sept. 6 are AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

    The company had prayed the court to declare that NMDPRA was in violation of Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licenses for the importation of petroleum products.

    It stated that such licenses should only be issued in circumstances where there is a petroleum product shortfall.

    It also urged the court to declare that NMDPRA is in violation of its statutory responsibilities under the PIA for not encouraging local refineries such as the company.

    But the marketers, in their response filed on Nov. 5, told the court that they are well qualified and entitled to be issued import licence by NMDPRA to import petroleum products in Nigeria within the meaning of Section 317(9) of the PIA.

    They argued that vesting Dangote Refinery with the power of monopoly in Nigeria’s petroleum industry as it sought vide the instant suit, would kill competitive pricing of petroleum products in the country.

    They said that such act would further deteriorate the country’s critically ailing economy “and unleash untold hardship on Nigerians, all of which constitute a recipe for disaster in the polity. “

    They said if Nigeria puts all her energy eggs in one basket by stopping importation of petroleum products and allowing the plaintiff to be the sole producer and supplier of petroleum products in Nigeria, with liberty to determine the prices at which it supplies the products, the prices of petroleum products will continue to rise and energy security will elude Nigeria.

    “That in the event of any breakdown in or obstruction to the production chain of the plaintiff which stops it from producing, Nigeria will be thrown into energy crises because it does not have the reserves that would last it for at least 30 days that it would need to order, pay for, freight and import refined products into tanks in Nigeria.

    “That amidst the glaring absence of any credible and demonstrable proof that the plaintiff refines and supplies adequate petroleum products for the daily use/consumption of Nigerians, is a recipe for disaster in Nigeria’s energy sector.”

    They further told the court that granting the reliefs sought by the plaintiff was a design to leave Nigeria and Nigerians at the mercy of the plaintiff with respect to availability and cost of purchasing petroleum products in the country.

    They equally argued in their reply that they are fully qualified for the issuance of the import licences issued to them by the 1st defendant, as they duly met all the legal requirements for the issuance of such import licences, before same were issued to them.

    “The import licences lawfully and validly issued to the defendants did not in any way whatsoever, cripple the plaintiff’s business or its refinery.

    “The import licences issued to the defendants by the 1st defendant are in line with the provisions of Petroleum Industry Act, 2021, the Federal Competition and Consumer Protection Act, 2018 and other relevant laws,” they told the court.

    Justice Ekwo had fixed Jan. 20, 2025 for report of settlement or service.

  • NNPC, Chevron conclude conversion of assets into PIA terms

    NNPC, Chevron conclude conversion of assets into PIA terms

    In line with the Petroleum Industry Act (PIA) 2021 provisions of transiting assets from the Petroleum Profit Tax (PPT) into PIA terms, the NNPC Ltd. and its Joint Venture (JV) partner, Chevron Nigeria Ltd (CNL), have concluded the conversion of five of its JV assets into the PIA terms.

    Under the new PIA regime, all existing Oil Prospecting Licenses (OPLs) and Oil Mining Leases (OMLs) would be automatically converted to Petroleum Prospecting Licenses (PPLs) and Petroleum Mining Leases (PMLs) upon their expiration.

    Nonetheless, an option of voluntary conversion is provided for holders of OPLs and OMLs (Operator, Licensees or Lessees) under the erstwhile Petroleum Profit Tax (PPT) regime. The PIA terms are generally perceived as more investor-friendly, compared to the erstwhile PPTA terms.

    During a brief ceremony held at the NNPC Towers on Monday, the two partners signed documents on the conversion of five (5) OMLs into four (4) PPLs and twenty-six (26) PMLs, in line with the new PIA terms, marking a significant step towards increasing domestic gas supply and expanding global market presence.

    Speaking at the occasion, Group CEO NNPC Ltd., Mr. Mele Kyari, described CNL as one of the most reliable partners for NNPC Ltd. “Over the years, Chevron has been a partner of choice that has not contemplated completely divesting/exiting (oil production in) the shallow water and we are proud of them,” he added.

    Kyari assured CNL that NNPC Ltd would sustain its partnership with the JV partner to create more value for both parties and expand Nigeria’s footprints in the domestic and export gas markets.

    He commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its exemplary role in midwifing the conversion.

    The Director, Deepwater and Production Sharing Contract (PSC) of CNL, Mrs. Michelle Pflueger who stressed the significance of the conversion for both companies, affirmed CNL’s long-standing commitment to the assets.

    Also speaking, NNPC Ltd.’s Executive Vice President, Upstream, Mrs. Oritsemeyiwa Eyesan, highlighted the advantages of the PIA terms over the previous PPT terms, noting that the conversion was a strategic move towards the successful implementation of the PIA.

    In his remarks, NNPC Ltd.’s Chief Upstream Investment Officer, Mr. Bala Wunti, noted that the assets conversion is expected to significantly boost crude oil production, with the two partners focusing on attaining the 165,000 barrels of oil per day (bopd) production target by year-end, 2024.

    He emphasized the continued importance of CNL’s operational philosophy in maintaining network stability and facilitating gas supply especially to the domestic market.

  • PIA: Host communities make fresh demands from oil companies

    PIA: Host communities make fresh demands from oil companies

    Host Communities of Nigeria Producing Oil and Gas (HOSTCOM) have called for an upward review of the three per cent statutory fee accruing to host communities from oil companies. According to HOSTCOM, the review becomes necessary in view of present economic realities.

    Dr Benjamin Tamaramiebi, the National President, HOSTCOM made the call on Tuesday in Abuja while briefing  newsmen. He said that the existing three per cent had become insignificant due to the prevalent economic realities.

    The 3% fee is charged on the Operating Expenses or Expenditure (OPEX) of the previous year of oil companies and remitted to host communities by the companies as stipulated in the Petroleum Industry Act (PIA) 2021.

    Tamaramiebi also appealed to the oil companies that had not complied with the HOSTCOM regulations to do so immediately to incorporate the Host Communities Development Trust Fund (HCDT) for maximal use.

    “While we commend the implementation of the PIA 2021 that has started in some areas, there are many things and many communities that have to be taken care of. The above applies to the three per cent accruing to Host Communities. There is need for the immediate Upward Review of the three per cent which is now very insignificant due to the prevalent economic realities.

    “We give kudos to the Nigeria Upstream Petroleum Regulation Commission (NUPRC) for priotising first the HOSTCOM Regulations and today we are seeing the improvement in our production,” Tamaramiebi said.

    He said the three per cent provision which was given in 2021 was no longer a reality or dependable. According to him, they will engage the leadership of both chambers of the National Assembly and members to push for amendments of the PIA to address contentious areas and clauses.

    Listing sections for amendment, he included section 257 sub section two that provided “if there is vandalism or sabotage, the community will forfeit the actual cost of repair. While section 52 says there should be a Midstream and Downstream Gas Infrastructure Fund.

    “In section 52, sub section seven (d) and section 104 sub section four says, money received from Gas Flares Penalties by the Commission shall be for environmental remediation and relief of the host communities of the Settlors on which the penalty are levied.

    “Gas Flare funds shall be channelled to the Trust Fund Account set up by Settlors to avoid crises, and other notable sections of the PIA 2021 Act,”.

    The HOSTCOM president also condemned the call for the deployment and possible sack of Sen. Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil) for incompetence and other spurious allegations

    “The fact that Lokpobiri is a renowned Lawyer and a Ph.D holder makes him very qualified and competent. But beyond the above, he has changed the narratives in the oil and gas sector as he took over a year ago.

    “We wish to state categorically that the talk about incompetence is the figment of the imaginations of sponsored individuals considering the fact that Lokpobiri’s appointment has helped to douse tension, including the issue of insecurity and community agitations,’’ he said.

    He also condemned in a very strong terms rumour about ongoing plan to impeach the Senate President, Chief Godswill Akpabio.

    “The HOSTCOM frowns at such plans and advise those behind such divisive, deceptive and distractive moves to jettison it because it is not in the interest of the country,’’ he said.

    He recalled that Akpabio left indelible records during his two terms as Akwa Ibom Governor.

    The president urged support for Akpabio, adding that HOSTCOM had passed a vote of confidence on Akpabio and the leadership of the National Assembly.

    “We extend same Token to Sen. Heineken Lokpobiri, the Minister of State for Petroleum (Oil). Finally, as the Host Communities of Nigeria Producing Oil and Gas, we shall remain firm and resolute in fighting to protect the interest of oil and gas bearing communities,” he said.

    He, however, called for support to HOSTCOM which efforts was to ensure that oil and gas bearing communities were not cheated or treated badly by the International Oil Companies (IOCs) or agents of government.

  • Bayelsa Oil Communities lament bottlenecks in PIA implementation

    Bayelsa Oil Communities lament bottlenecks in PIA implementation

    Oil bearing communities in Bayelsa have bemoaned prolonged delays in the implementation of the host community fund component of the Petroleum Industry Act (PIA).

    Representatives of the communities expressed dismay that since the PIA came into effect in 2021, no meaningful development projects had been carried out due to bureaucracy in setting up governance template for the funds.

    The Bayelsa oil communities expressed their position in a statement issued on Sunday in Yenagoa.

    It was jointly signed by Mr. Francis Amamogiran, Chairman of the Dodo River Rural Development Association, Mr. Christopher Tuduo, the youth leader and Chief Theophilus Moses, a community leader.

    They noted that their peaceful disposition had ensured uninterrupted oil and gas exploration and production amidst the delays and warned against taking their stance for granted.

    The statement urged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to expedite its regulatory efforts aimed at ensuring full compliance by all oil companies with the three per cent operational expenses obligation.

    The communities noted that given the opaque nature of the oil industry, the regulatory powers of a regulator was required and urged NUPRC to be a catalyst and not a cog in the wheel of progress.

    They stated that the oil communities would be constrained to disrupt oil production across the state if the relevant agencies did not refrain from actions that could potentially reduce the three per cent host communities fund, or create bottlenecks under the PIA.

    The communities expressed readiness to take decisive action and escalate their efforts to address the concerns of the oil and gas communities.

    They explained that their proactive engagement in pacifying the youths across various communities since the signing of the Petroleum PIA had yielded the desired results

    They stated that the stability of oil operations could be compromised if the situation is allowed to deteriorate further.

    They warned that improper handling of host communities issues could have negative repercussions on Nigeria’s oil production and economy.

    According to them, host communities are often excluded from the decision-making process, which results in the use of public resources to defend decisions in the media.

    They noted that NUPRC’s regulatory oversight function was essential, over-involvement in the activities of host communities were counterproductive and financially burdensome.

  • NASS, AGF dragged to court over Section 257 of PIA

    NASS, AGF dragged to court over Section 257 of PIA

    Some natives of oil-bearing communities in Niger Delta and Civil Society Organisations (CSOs) have dragged the National Assembly to Court over Section 257 of the Petroleum Industry Act (PIA).

    Also joined in the suit is the Attorney-General of the Federation and Minister of Juatice.

    The Executive Director of WeThePeople, Mr Ken Henshaw, disclosed this at a news briefing in Port Harcourt on Thursday.

    Henshaw said that the group had approached the court for it to determine the provision of a section of the Act.

    According to him, the entire section contravened the 1999 Constitution of Nigeria as amended.

    The group in a suit marked FHC/PH/CS/181 filed at the Federal High Court in Port Harcourt, had Henry Eferebo, Princewill Chukwure, Avadi Chimankpam and Health of Mother Earth Foundation as co-plaintiffs.

    The suit sought the relief to determine whether the shifting of personal liability for damage, property injury, vandalism or sabotage to host community by the provision of section 257(2,3) of the PIA 2021, is in consistence with section 43 and 44 of the 1999 Constitution, which protects citizens’ rights to own immovable and movable properties, including funds.

    Henshaw said that the court should determine and subsequently repeal the section of PIA that contains key provisions aimed at addressing long-standing development challenges in oil-producing communities in Nigeria.

    He said that several provisions in the section of the Act, on another hand, had the potential to cause disaffection and conflict between oil firms and host communities.

    Henshaw said that some provisions of section 257 of the PIA, rather than promote development, may result in increased deprivation for communities and create new conflict scenarios.

    “The fact that the Act blames host communities for oil theft and oil infrastructure sabotage  and mandates them to become unpaid, unskilled, and unarmed guardians of oil equipment and pipelines, was perhaps the most contentious and unjust aspect of the Act,” he said.

    He condemned the destruction of oil infrastructure, describing such rascality as a crime with well-established punishment after due determination of guilt by a court.

    “No existing law provides for the punishment of an entire community, in this case, the denial of due benefits for a crime committed by a person or persons at large,” Henshaw said.

    He further said that no Nigerian law permits the award of punishment of any supposed crime without the determination of a court of law.

    “It is implausible that an entire community, including all men, women and children, collectively sabotage oil infrastructure.

    “Why then should the entire community bear the consequences?,” he rhetorically asked.

  • PIA: NUPRC assures of domestic crude oil supply

    PIA: NUPRC assures of domestic crude oil supply

    The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) says the commission is committed to effective implementation of the Petroleum Industry Act (PIA 2021) for the sector to contribute more to national economy.

    The commission says it will ensure that relevant sections of the PIA that affect its operations are duly implemented, including the Domestic Crude Oil Supply to licensed refineries in Nigeria.

    Mr Gbenga Komolafe, Commission Chief Executive (CCE), NUPRC stated this during a meeting with Exploration and Production Companies on Domestic Crude Supply Obligation (DCSO) at the NUPRC headquarters on Wednesday in Abuja.

    The meeting aimed at chatting a common front with NUPRC for alignment on the implementation of domestic crude oil supply obligation, operator’s compliance status and operator’s response.

    As more private refineries indicate readiness to start production soon in Nigeria, the NUPRC is taking necessary steps within the prescriptions of the PIA 2021 to ensure adequate and consistent supply of feedstock to operators.

    In line with its mandate of ensuring crude oil supply to licensed refineries in Nigeria as enshrined in Section 109 (4) of the PIA, the commission said it recently cautioned that there would be consequences and sanctions for sabotaging the process.

    He said effective implementation of the PIA would create an enabling environment for players in the industry to thrive and ensure the petroleum industry generated more income for the government.

    “As  the pioneer regulator of the upstream sector, we want effective implementation of the relevant sections of the PIA, and we cannot shy away from it.

    “We are committed to the effective implementation of the PIA in the interest of our industry and our dear nation.

    “As I said, as a regulatory body, we will regulate in line with the provisions of the Act and whatever decision we take will be in line with the law to ensure growth and development,” he said.

    Komolafe, however, urged industry operators to uphold best practices and comply with provisions of the law as the federal government, through its relevant bodies was carrying out reforms.