In some circumstances, the indigenous preference provisions in the Oil and Gas Industry Content Development Act 2010 may disadvantage the Nigerian economy as a whole and its oil and gas sector in particular. Notably, there is no law forbidding or penalising the acquisition of majority stakes in Nigerian oil and gas exploration and production companies which qualify as Nigerian companies by foreign companies. In some circumstances, such acquisitions should even be encouraged.
One of the unstated objectives of the Petroleum Industry Bill 2020 is to clarify the law and practice of ministerial consent for assignments of interest in upstream oil and gas licences and leases. This article addresses the extent to which it can be said that this objective has been achieved.
The enactment of the latest iteration of the Petroleum Industry Bill (PIB) will result in a separation of the regulatory, policy and commercial functions of the minister of petroleum resources. While the minister's influence may be perceived to have diminished under the PIB, this may not be the reality when all of the circumstances are taken into consideration.
The Local Content Development and Enforcement Bill 2020 recently passed its second reading in the House of Representatives and was subsequently referred to the Committee on Nigerian Content Development and Monitoring for further consideration. The bill seeks to amend the Oil and Gas Industry Content Development Act by expanding its scope to capture changes in the industry.
The Oil and Gas Industry Content Development Bill 2020 recently passed its second reading in the Senate and was subsequently referred to the Committee on Local Content for further consideration. The bill seeks to amend existing sections of, and introduce new sections to, the extant Oil and Gas Industry Content Development Act with the aim of aligning the act with industry best practices.