Grants of Upstream Petroleum Expolration Licences and Leases in Nigeria under the Petroleum Industry Bill 2012: An Overview

Abstract

Section 2 of the Petroleum Industry Bill 2012 (PIB 2012), in the same spirit as section 44(3) of the 1999 Constitution of the Federal Republic of Nigeria (as amended), vests the entire property and control of all petroleum in, under or upon any lands within Nigeria, its territorial waters, or which forms part of its continental shelf and the exclusive economic zone, on the Government of the Federation. A significant feature of this constitutional and statutory position is a corresponding exclusive power of the Federal Government to make grants for prospecting, exploration, mining and production of petroleum resources in Nigeria. The article carries out an overview of some relevant provisions relating to the award of upstream petroleum exploration licences and leases under the PIB 2012 and contends that in view of the worthy objectives and provisions of the PIB in this respect, the National Assembly should expeditiously pass the Bill into law to ensure that it becomes valid and binding on all persons and institutions engaged in the upstream petroleum operations in Nigeria.

Keywords: Downstream, Drilling, Lease, Licence, Petroleum, Relinquishment, Upstream