The model new Petroleum Commerce Bill, 2020, at current sooner than the Nationwide Assembly, is proposing the revocation of licences for oil and gas companies that fail to meet up with their obligations to their host communities.
The flexibility to revoke the licence of the defaulting companies was given to the Minister of Petroleum, upon the recommendation of the Nigerian Upstream Regulatory Payment, amongst totally different powers.
The bill defines host group as “any group situated in or appurtenant to the House of Operation of a Settlor, and one other group as a Settlor might determine.”
In accordance to the bill, any oil and gas agency that fails to incorporate the Host Communities Development Perception shall have its license revoked.
It acknowledged that on its construction, the Host Communities Development Perception may very well be empowered to deal with and supervise the administration of the annual contribution of the settlor (the oil agency) contemplated beneath the Act and one other sources of funding.
The bill outlined that the targets of the host group enchancment perception shall embody to finance and execute duties for the revenue and sustainable enchancment of the host communities; undertake infrastructural enchancment of the host communities contained in the scope of funds accessible to the Board of Trustees for such capabilities; and facilitate monetary empowerment options throughout the host communities, amongst others.
Completely different powers granted the Minister of Petroleum throughout the new bill, embody the revocation and activity of pursuits throughout the petroleum commerce; approve the costs for suppliers rendered by the upstream, midstream and downstream regulatory authorities; and order a cutback of the levels of crude oil or condensate manufacturing throughout the context of worldwide oil pricing agreements supported by Nigeria.
The minister can be empowered to, upon the recommendation of the Nigerian Upstream Regulatory Payment, or the Nigerian Midstream and Downstream Petroleum Regulatory Authority, direct in writing the suspension of petroleum operations in any house.
The suspension, the bill acknowledged would persist until preparations to cease hazard to life or property have been made to his satisfaction, or the place in his opinion, a violation of the Act or any regulation made beneath the Act has occurred or might be going to occur.
The bill moreover mandates the Nigerian Upstream Regulatory Payment and the Nigerian Midstream and Downstream Petroleum Regulatory Authority to maintain appropriate accounts of its earnings and expenditure for each financial yr and set off it to be audited inside six months after the highest of each financial yr by auditors appointed by the Payment from a listing and in accordance with pointers, geared up by the Auditor-Widespread for the Federation.
For the Nigerian Upstream Regulatory Payment, the Bill acknowledged: “The Payment shall submit to the Minister – a mid-year report of its operations and funds not later than the thirty first of August of yearly; an annual report of its operations and effectivity; and an audited financial account for the yr, not later than thirty first of March of the following yr.
“The Payment shall, not later than the thirty first of March of yearly – submit to the Minister a summary of its annual report and audited financial accounts; and publish the annual report and audited financial accounts on its web page.”
The bill can be proposing the organising of a Midstream Gasoline Infrastructure Fund, which it acknowledged, shall be a “physique firm with perpetual succession and a typical seal; and reside throughout the Authority as prescribed in accordance with this Act.
“The Midstream Gasoline Infrastructure Fund shall have the flexibility to buy, preserve and dispose of property, sue and be sued in its firm title.”