PETROLEUM ACT (CURRENT: PETROLEUM INDUSTRY ACT, 2021)

An Act governs petroleum exploration, production, and distribution in Nigeria through a licensing framework. It targets oil companies, regulators, and the federal government. This asserts state ownership and enforces safety standards.

What Is This Policy?

The foundational legislation that governed petroleum exploration, production, and distribution in Nigeria for decades, now largely replaced by the Petroleum Industry Act 2021 which comprehensively restructured the sector.

Who Does It Target?

Oil and gas exploration and production companies NNPC (now NNPC Limited under PIA 2021) Petroleum regulators (now NUPRC and NMDPRA) Federal Government as owner of petroleum resources

What Does It Aim to Achieve?

Assert federal ownership of all petroleum resources, regulate petroleum operations through a licensing framework, and ensure adherence to safety and environmental standards.

Key Features

State Ownership: Vests all petroleum in Nigeria in the State (Federal Government). Licensing Regime: Oil Prospecting Licences (OPLs) and Oil Mining Leases (OMLs) were the basis for operations. Regulatory Powers: Empowered the Minister of Petroleum to make regulations for safety and environment. PIA 2021 Successor: PIA 2021 now governs new licensing and the restructured petroleum sector institutions.

Current Status

Rollout Stage: Substantially superseded — PIA 2021 governs new operations; legacy licences retained under transition provisions Coverage: Nationwide petroleum sector Beneficiaries: Government revenue; petroleum industry operators Funding: Oil royalties and taxes

How to Access

New licences issued under PIA 2021 through NUPRC Legacy licences granted under Petroleum Act continue under PIA 2021 transition provisions Engage NUPRC for all current upstream licensing matters Application method: Upstream licensing: NUPRC at https://www.nuprc.gov.ng

Important Terms

PIA 2021 is the current law for new petroleum operations Petroleum Act provisions for existing licences remain relevant under transition provisions NNPC has been converted to NNPC Limited as a commercial entity under PIA 2021

Official Resources

Website: https://www.nuprc.gov.ng Contact: Nigerian Upstream Petroleum Regulatory Commission (NUPRC)

Legal Framework

The Petroleum Act (now replaced by the Petroleum Industry Act 2021) was the primary petroleum legislation since 1969. The PIA 2021 is the current primary legislation, operating under Section 44(3) of the 1999 Constitution (Federal Government ownership of mineral resources). The PIA aligns with Nigeria's Paris Agreement NDCs, ECOWAS Energy Protocol, the Natural Resource Charter, and international petroleum governance standards from the International Energy Charter.