PETROLEUM INDUSTRY ACT 2021 (PIA)
Takeover Rights, Interest Obligations, Liabilities of the Defunct Agencies
Did you know that the two corporations established under the Petroleum Industry Act 2021 (PIA), namely the Nigerian Upstream Regulatory Commission (the Commission) and Nigerian Midstream and Downstream Regulatory Authority (the Authority) are to takeover rights, interest obligations, liabilities of some of the agencies repealed by the Act?
The Commission was established to takeover regulation of the upstream sector while the Authority was established to regulate the midstream and downstream sectors.
If you have or owe any right, interest obligation or liability in respect of the Petroleum Inspectorate (the Inspectorate) and Department of Petroleum Resources (DPR) immediately before the effective commencement date of the PIA, under any contract or instrument or law or in equity such are assigned to and vested in the Commission. (Section 312(2) of PIA 2021)
If you have or owe any right, interest obligation or liability in respect of the Department of Petroleum Resources (DPR), Petroleum Pricing and Product Regulatory Agency (PPPRA), and the Petroleum Equalization Fund (PEF) immediately before the effective commencement date of the PIA, under any contract or instrument or law or in equity such are assigned to and vested in the Authority. (Section 313(2) of PIA 2021).
Prior to the PIA, the defunct DPR’s mandate spanned across all the sectors (upstream, midstream, and downstream) of the petroleum industry. The mandate of the defunct DPR is now vested in the Commission and the Authority in accordance with the categorization of the sectors.
What about Lawsuits and Petitions by or against defunct agencies?
- The PIA provides that rights, interests, liabilities include Lawsuits and Petitions by or against the PPPRA, DPR, PEF. (Sections 312(2) and 313(2) PIA 2021).
- The relevant sections are to the effect that all lawsuits and petitions instituted by or against the defunct agencies are to be taken over by either the Commission or the Authority based on the sector categorization (upstream, midstream, and downstream).
- Parties may also initiate a lawsuit or petition against the Commission or Authority in which the cause of action arises against the defunct agencies prior to the coming into force of the PIA.
The content of this article does not, and is not intended to, constitute legal advice. It is intended to provide general information only on the subject matter. Readers should not act based on the information herein provided; instead, seek professional advice for specific matters.