Federal Government of Nigeria recently announced a draft oil and gas reform, if passed by Parliament, will serve as new legal norms in the country oil and gas industry. Owing to the importance of Nepal and the two boards, respectively, before the Subcommittee held a hearing on foreign oil companies can take advantage of this opportunity to raise public criticism and questions.
In accordance with federal requirements, relevant departments of the drafting of a new Nigeria's oil and natural gas bills. The core of the reform is to promote the privatization of the oil industry, while strengthening the supervision of foreign countries in order to change the situation of long-term poor management. Bill includes the following major provisions:
First, the state-owned Nigerian National Petroleum Corporation (NNPC) will be divided into several independent companies, including a dedicated pursuit of the national oil company profits; national oil companies can raise funds by listing no longer rely on existing Government financial input; national oil company initially 100% owned by the Government, but the future may be open to the Nigerian part of the shares.
Second, some deep-sea oil production contracts, the need to renegotiate, the federal government can charge higher royalties and taxes; next signed a contract oil and gas development and production should be added to the "renegotiation" clause.
Third, the Government has the right to oil exploration for a long time the land is not available to new foreign investors, development and exploration is not forthcoming in the ranks; encouraging national oil companies and foreign oil companies at least 50% of the exploitation of crude oil to stay extraction in Nigeria.
Fourth, the establishment of the National Petroleum Authority, the Ministry of Oil to replace the original, the establishment of industries to upstream, midstream and downstream at the same time monitoring the implementation of the specialized agencies.
Aug. 5, 2009
