Tag Archives: OIL BLOCKS

Buhari Will Strip President Powers To Allocate Oil Blocks- Report

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If the new draft of the Petroleum Industry Bill (PIB) is passed by the National Assembly, the President will not have discretional powers to allocate oil blocks. When it comes into effect, the Nigeria Petroleum Regulation Commission (NPRC) would solely enjoy such powers. The agency would emerge with the PIB.

The final draft of the new bill, “Petroleum Industry Governance and Institutional Framework Bill 2015”, which was concluded on December 2, 2015, limits the power of the President to appoint members of the NPRC board. The bill aims to promote transparency and accountability in the administration of the petroleum resources, while creating a conducive business environment for the industry operations. The new draft, which mentions the Senate twice, says the Upper Chamber would be responsible for the ratification of the governing board members appointed by the president. “The appointment to the board in respect of persons appointed pursuant to paragraphs (a) to (d) of this section shall be made by the President subject to confirmation of the senate,” the bill reads.

“The chairman and non-executive commissioners shall be persons of high integrity and substantial professional experience; in appointing the chairman and the non-executive commissioners, the President shall have due regard to a fair representation of the technical, legal and commercial interests.”

The initial PIB, which had been stuck in the National Assembly for nearly a decade, conferred discretionary powers on the President to allocate oil blocks besides the competitive open bidding. As recently as 2012, the PIB presented before the National Assembly said, “notwithstanding the provisions of the subsection (3) of Section 190 or any other provision of this Act, the President shall have the power to grant a licence or lease under the Act”.

Credit: Sun

Niger Delta Group Drags FG To Court Over Oil Blocks

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The federal government has been dragged to the Community Court of Justice of the Economic Community of West African States (ECOWAS) by some aggrieved members of the oil producing community of the Niger Delta Region, asking the court to declare as unlawful and a violation of their fundamental right, the unilateral allocation of crude oil blocks to private Nigerians and their firms by the respondent.

The plaintiffs described the federal government’s action as a total disregard to rights of the people of the communities in whose lands the crude oil is located as entrenched in Article 21, 22 and 24 of the African Charter on Human and Peoples Right (ACHPR), as well as Article 1 (1-3) of the United Nation’s International Covenant on Civil and Political Rights (ICCPR) and Article 1 (1-3) and 11 of the International Covenant on Economic, Social and Cultural Rights (ICESCR).

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Oil Blocks Sale: PENGASSAN, NUPENG Shut Down Oil Facilities Nationwide

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The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and the National Union of Petroleum and Natural Gas Workers (NUPENG) have directed employees of the Nigerian Petroleum Development Company (NPDC), a subsidiary of the Nigerian National Petroleum Corporation (NNPC), to shut down indefinitely their locations and all oil production facilities nationwide in a bid to force the minister of petroleum resources, Mrs. Diezani Alison-Madueke and the federal government to reverse the transfer of operatorship of OMLs 42, 40 and 30.

THE WILLS also reports that the assets were previously operated by Shell.

The directive to shut down the facilities was issued yesterday by the executive councils of the PENGASSAN and NUPENG.

A petroleum industry source with knowledge of the development told the online medium that all branch chairmen of the powerful unions have been directed to fully implement the directive starting from tomorrow, May 20, 2015.

The unions are aggrieved that the sale of the assets did not follow due process and would affect the fortunes of the NPDC and its workers.

Mr. Emeka Offor’s Elcrest Exploration and Production Nigeria Limited, a joint venture company of Eland Oil & Gas Plc, was awarded the operatorship of OML 40, while Mr. Ernest Ezedialu Obiejesi’s NECONDE is the operator of OML 42.

Sources in the sector say three flow stations have already been shut down in the creeks of the Niger Delta ahead of tomorrow’s total shutdown.

Nigeria is the largest producer of crude oil in Africa with an estimated daily production capacity of 2.2 million barrels per day.