Split petroleum licences in PIB, NNPC tells N’Assembly

Okechukwu Nnodim, Abuja

The Nigerian National Petroleum Corporation on Wednesday called for the splitting of petroleum licences into prospecting and production phases under the draft Petroleum Industry Administrative legislation currently before the National Assembly.

According to the corporation’s Group Managing Director, Maikanti Baru, the proposed split will prevent a situation where operators will sit perpetually on oil acreages.

Baru stated this in a presentation at the public hearing organised by the House of Representatives Committee on the Petroleum Industry Administrative Bill, Petroleum Industry Fiscal Bill and the Petroleum Industry Host Community Bill in Abuja.

The NNPC’s recommendation seeks a break-up of the petroleum licence into petroleum exploration licence, which has to do with petroleum prospecting, and petroleum lease, which will cover the production phase to search for, win, work, carry way and dispose of petroleum.

The corporation is also pushing for a re-think of the duration of licences as proposed in the PIAB, which stipulates an initial duration of 25 years for onshore and shallow water petroleum licences, and 30 years for deep water and frontier acreages.

The NNPC, however, proposed five years prospecting licences for onshore and shallow fields and 10 years for deep offshore and frontier basins.

It recommended 20 years’ production lease for onshore and shallow fields as well as deep offshore and frontier basins. The corporation noted that only the production lease period should be renewed for a period not exceeding 20 years.

Copyright PUNCH.
All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from PUNCH.

Contact: t[email protected]

(Visited 1 times, 1 visits today)

view more articles

About Article Author

Chuka (Webby) Aniemeka
Chuka (Webby) Aniemeka

Chuka is an experienced certified web developer with an extensive background in computer science and 18+ years in web design & development. His previous experience ranges from redesigning existing website to solving complex technical problems with object-oriented programming. Very experienced with Microsoft SQL Server, PHP and advanced JavaScript. He loves to travel and watch movies.

View More Articles

Subscribe to comments feed Comments (0 posted)

total: | displaying:

Post your comment

  • Bold
  • Italic
  • Underline
  • Quote

Please enter the code you see in the image:


Latest Nigeria News