Nigeria's upper and lower houses pass oil industry overhaul laws

Quantum Commodity Intelligence – Nigeria's lower house passed legislation set to overhaul the country's oil and gas industry Friday, according to media reports, bringing towards a close a process that has taken over a decade and which it is hoped will attract more foreign capital expenditure even as investors switch focus away from fossil fuels.

The legislation package was passed by Nigeria's upper house the prior day and will now move to President Muhammadu Buhari for final approval before becoming law.

The package provides resolution to ongoing regulatory and legal wrangles that have seen oil and gas projects deferred and includes tax concessions for oil companies compared to prior versions of the law.

The bill includes a string of changes sought by oil majors, including amended royalties and fiscal terms for oil and gas production.

There will be an Upstream Regulatory Commission for upstream operations, including the granting of petroleum exploration licences for three years, which can be renewed for another three years.

There will also be a Midstream and Downstream Regulatory Authority for midstream and downstream operations.

The bill will also transfer assets and liabilities of state oil company Nigeria National Petroleum Company's into a limited liability corporation.