SPECIAL ENERGY FOCUS REPORT

SPECIAL ENERGY FOCUS REPORT


1.       What is the Petroleum Industry Act about?
The Petroleum Industry Act (PIA), 2021 is the new law which revamps the legal, regulatory, institutional, and fiscal framework for the oil and gas sector in Nigeria. In repealing the Petroleum Act 1969 and other laws, it acts as a consolidation of all key laws governing the oil and gas sector and is expected to drive reforms and trigger critical investments in the sector.
2.       What is the legal and regulatory framework of the sector under the PIA?
 
Whilst the Minister is responsible for policy formulation and administration, the PIA establishes a dual regulatory framework. The Nigerian Upstream Regulatory Commission regulates upstream operations while the Nigerian Midstream and Downstream Petroleum Regulatory Authority regulates midstream and downstream operations. While it may be argued that efficiency is the driving force of the dual framework, it is considered that this framework may pose challenges of high administrative cost, unwieldy and cumbersome regulatory processes particularly for operators with ….continue reading