BOMBA DE SUMINISTRO DE AGUA POTABLE

A proper overview of the Nigerian oil and gas regulatory framework entails an

acknowledgement of its jurisdictional background. The jurisdictional background is often an

embodiment of the overarching rationale for the adoption of specific legal regimes, and the

regulatory framework for oil exploitation is no different. The Nigerian petroleum regulations

are patterned after the United Kingdom (UK) regulations by virtue of the British colonial

influence prevalent at the commencement of oil and gas exploratory activity in Nigeria.447

Some erstwhile regulations like the Mineral Oils Ordinance evolved into the Nigerian

Petroleum Act (PA) its amendments and subsidiary legislation.448 These include the Petroleum

Drilling Regulations (for monitoring petroleum drilling operations) and the Petroleum Refining

Regulations (which constitute the regulatory parameters for petroleum refining operations in

447 _{The Nigerian Legal System is a transplant of the UK regulations and is comprised of the Statutes of General Application,} Common Law and Doctrines of Equity, statutes made before October 1, 1960, including unrepealed regulations extending to Nigeria. Laws made by the local colonial legislature also form part of Nigerian legislation. Eg. The Petroleum Ordinance of 1889. This legislation had existed before commencement of exploration, the Mineral Regulation (Oil) Ordinance of 1907 entitled only British subjects to prospect for oil. The Mineral Oils Act of 1959 thereafter repealed the Mineral Oils Ordinance of 1914. See also, J.G. Frynas, “Oil in Nigeria: Conflict and litigation between oil companies and village communities” (1999)

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the oil industry).449 The Nigerian PA, which is also reminiscent of the UK Petroleum Act,

remains the primary legislation overseeing petroleum activities in Nigeria. It provides a

framework for regulating upstream and downstream petroleum activities. The Associated Gas

Reinjection Act (1979) provides statutory basis for the control of gas flaring in Nigeria.450 The

Environmental Impact Assessment Act (1992) provides a regulatory framework for EIAs as a

part of project development. The Minerals Ordinance (1914) prohibits the pollution of

watercourses in the process of mining and prospecting for minerals in Nigeria and incidentally

amended in 1925, 1950, and 1958. The Oil Pipelines Act was enacted in 1965 to provide a

legislative framework for the prevention of land and water pollution during oil transportation

via pipelines.

In the same vein, the Mineral Oils Act (1963) provides a framework for health, safety and

environmentally friendly exploration and production activities. The Hydrocarbons Oil

Refineries Act451, the Petroleum Regulations (1967) also provide a framework for safe

petroleum operations, including environmental protection. The Oil in Navigable Waters Act452,

essentially prohibits discharge of oil into navigable water courses and other areas. There is also

the Nigerian National Petroleum Corporation (NNPC) Act No 33 of (1977) which empowers

the Corporation to engage in all activities relating to the petroleum industry and to enforce all

regulatory measures relating to the general control of the petroleum sector through its

Petroleum Inspectorate Department. The Act also provides appreciable opportunities for the

NNPC to be engaged in petroleum activities without limitations by ensuring that the NNPC is

an operator, participant and regulator of the Nigerian oil and gas industry.453 Other relevant

449 _{The Petroleum Drilling and Petroleum Refining Regulations were also enacted in 1969 as subsidiary legislation to the} Petroleum Act of 1969.

450 _{See later section on Atmospheric protection regulations}

451 _{See, Hydrocarbons Oil Refineries Act (1965) assessed in later sections} 452 _{Oil in Navigable Waters Act (1968) also discussed in later sections}

453 _{NNPC functions include inter alia: exploration and production, refining, purchasing and marketing of petroleum, its} products and by-products. Also, providing and operating pipelines, tanker-ships and other facilities for the conveyance of

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laws include pertinent sections of the Federal Constitution of Nigeria (1999) and the Land Use

Act (1979). Each law is accountable for different but significant roles in the administration and

regulation of the petroleum industry. Moreover, they establish the regulatory agencies for

implementing government policies whilst optimizing compliance mechanisms towards

corresponding statutes.

In accordance with the administrative and regulatory obligations vested on the petroleum

minister by the PA, the petroleum Ministry is accountable for the formulation, implementation

and co-ordination of government policies for the industry.454 The Ministry also exercises its

regulatory functions through the Department of Petroleum Resources (DPR), which is

responsible for the monitoring and supervision of the petroleum industry and its operations.

Industry operations are normally executed via petroleum licences and leases in the country,

while the DPR ensures compliance with the applicable laws and regulations in line with good

oilfield practices. The Minister of Petroleum Resources oversees the DPR with overarching

regulatory powers.455 This encompasses powers to grant the rights for the exploration,

extraction and production of oil and gas in Nigeria through the issuance of oil exploration

licences (OELs)456, oil prospecting licences (OPLs)457 and oil mining leases (OMLs).458 The

crude oil, constructing equipping and maintaining tank farms, research and development and doing anything for giving effect to agreements entered into by the Nigerian Government with a view to seeking participation by the Government or the Corporation in activities connected with petroleum.

454 _{See, Section 2(1) Petroleum Act 1969} 455 _{See, Section 2 Petroleum Act 1969}

456 _{See, S. 2 (1) (a) Petroleum Act, 1969 An Oil Exploration Licence (OEL) is granted for one year for the search of oil only.} The nature of the interest granted is to confer on the licensee the right to explore for petroleum. This right is however not exclusive to the licensee as another OEL may be granted to another applicant over the same area. This right granted by an OEL extends to conducting aerial and surface geological and geophysical surveys, excluding drilling below 91.44 metres. An OEL is also renewable.

457 _{S.2 (1) (b) Petroleum Act, an oil prospecting licence (OPL) is granted for five years and is also renewable for the search,} drill, win and disposal of oil. It confers on the licensee the right to explore, carry away and dispose of petroleum discover ed and won in the area covered by the licence. This grant is exclusive so that another OPL may not be granted in respect of the same area.

458 _{S.2 (1) © Petroleum Act, an oil-mining lease (OML) is granted for twenty years and is renewable for the search, win and} disposal of oil.

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Minister may also authorise other contractual arrangements, such as production sharing

contracts (PSCs)459 and service agreements or service contracts (SCs).460

Other supervisory agencies for the oil and gas industry include: The Federal Ministry of

Environment (FME) which is responsible for administering environmental impact assessments

(EIAs) for public and private schemes, as well as oil and gas projects. The DPR also has

primary responsibility for the enforcement of safety and environmental standards in the oil and

gas industry. Whereas, the Petroleum Inspectorate, operates as a department within the

Nigerian National Petroleum Corporation (NNPC), it is responsible for issuing permits and

licences for activities connected with petroleum exploration and exploitation.461 Also, the

National Oil Spills Detection and Response Agency (NOSDRA) is responsible for preparing,

detecting and responding to oil spillages. Likewise, the agency undertakes surveillance of oil

exploration activities including securing compliance with all existing environmental

legislation, particularly in spills detection.462

2.2. Sustainable Development Goals and Oil Exploitation in Nigeria: A Case of Multiple