http://allafrica.com/stories/200908060777.html

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To enhance effective administration in the petroleum industry for the benefit of all Nigerians and relevant stakeholders, the Nigerian National Petroleum Corporation (NNPC) has been split into three separate entities.

They include the Nigerian Petroleum Inspectorate that will be responsible for all matters related to the upstream, which include oil and gas petroleum exploration and production.

The second is the National Midstream Regulatory Agency, which is to be responsible for all matters related to the midstream. They include pipelines transportation, storage, refining and liquefied natural gas.

While the third is the Petroleum Product Regulatory Authority, which is to be responsible for all matters related to the downstream, including petroleum product and natural gas distribution to final consumers.

The Minister of Petroleum Resources, Dr. Rilwanu Lukman, who identified the entities in Abuja at a stakeholders' forum on the proposed Petroleum Industry Bill (PIB) said the approval process of each project consists of a one-stop shop.

He said all that is required for a new project is to get a single approval from the respective entity.

The requirements, according to the minister, are that each project has to comply with modern technical standards with sound commercial proposition exclusive of excessive costs.

The requirements are to meet all health and safety standards, including a Nigerian content plan that ensures maximisation of Nigerian employment and business opportunities.

Lastly, they should ensure maximum local economic spin-offs and job opportunity and meet all environmental standards, including an approved environmental management plan, he added.

Lukeman noted that the PIB represents the largest overhaul of the government petroleum revenue system in the last four decades with four central objectives.

These include simplifying the collection of government revenues to creaming off windfall profits in case of high oil prices, collecting more revenues from large profitable fields in the deep offshore waters and creating Nigerian employment and business opportunities by encouraging investment in small oil and gas fields.

Noting that the simplest government revenues to collect are royalties, the minister said: "Everyone can calculate and verify on the back of envelop how much royalties should be collected from each of the oil and gas field each month. Therefore, the main emphasis of the new government petroleum revenue system is on royalties."

According to the minister, the royalties' percentages are designed to automatically adjust to the economic circumstances, "using a two sliding scale." One scale, he said relates to the daily production of the oil and gas field while the other relates to the oil and gas price.


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This man should just go and sleep. i have known him to be in the petroluem sector since i was a young boy and nigerian are yet to see the dividends from that sector.

Can a rotten tree produce good fruit?

What a money grubbing leech, where was he when petrol destroyed people in thousands?.