Oil regulation—Nigeria—Q&A guide

The following Energy practice note provides comprehensive and up to date legal information covering:

  • Oil regulation—Nigeria—Q&A guide
  • 1. Describe, in general terms, the key commercial aspects of the oil sector in your country.
  • 2. What percentage of your country’s energy needs is covered, directly or indirectly, by oil or gas as opposed to nuclear or non-conventional sources? What percentage of the petroleum product needs of your country is supplied with domestic production?
  • 3. Does your country have an overarching policy regarding oil-related activities or a general energy policy?
  • 4. Is there an official, publicly available register for licences and licensees? Is there a register setting out oilfield ownership or operatorship, etc?
  • 5. Describe the general legal system in your country.
  • 6. Describe the key laws and regulations that make up the principal legal framework regulating oil and gas activities.
  • 7. Are there any legislative provisions that allow for expropriation of a licensee’s interest and, if so, under what conditions?
  • 8. May the government revoke or amend a licensee’s interest?
  • 9. Identify and describe the government regulatory and oversight bodies principally responsible for regulating oil exploration and production activities in your country. What sanctions for breach may be imposed by the regulatory and oversight bodies?
  • More...

Oil regulation—Nigeria—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to oil regulation in Nigeria published as part of the Lexology Getting the Deal Through series by Law Business Research (published: June 2021).

Authors: ENR Advisory—Gbite Adeniji; Olajumoke Arowolo; Pacer Guobadia

1. Describe, in general terms, the key commercial aspects of the oil sector in your country.

Nigeria has 36.89 billion barrels of crude oil reserves and is the 11th largest oil producer globally. These reserves are located in the offshore deepwater acreages and several smaller, mostly ageing, onshore and shallow water fields. The total crude oil and condensate production for the year 2019 as reported by the Nigerian National Petroleum Corporation (NNPC) stood at 735,244,080 barrels, giving a daily average of 2.01 million barrels.  

The crude oil industry in Nigeria is export-focused. Upstream operations are carried out by joint ventures between international oil companies and NNPC, as well as by a number of independents. Crude oil refining activity is very limited owing to the dilapidation of the state-owned refineries. Consequently, local demand for petroleum products is satisfied by imports. NNPC undertakes these imports through crude oil swaps (ie, sale of crude oil to foreign refineries), in exchange for refined petroleum products. The retailing of petroleum products is carried out by several firms that store, transport and retail the imported refined products.

2. What percentage of your country’s

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