PIB: NNPC Seeks Split of Petroleum Licenses

The proposed split would prevent a situation where operators would sit perpetually on oil acreages.

SEATTLE (Oil Monster): The Nigerian National Petroleum Corporation (NNPC) has recommended the splitting of petroleum licences into two components for prospecting and production phases under the draft Petroleum Industry Administrative legislation currently before the National Assembly.

The Group Managing Director of the corporation, Dr. Maikanti Baru, made the presentation at the Public Hearing organized by the House of Representatives Committee on the Petroleum Industry Administrative Bill (PIAB), Petroleum Industry Fiscal Bill (PIFB) and the Petroleum Industry Host Community Bill (PIHCB) in Abuja yesterday.

According to a statement by NNPC’s spokesman Ndu Ughamadu the GMD said the proposed split would prevent a situation where operators would sit perpetually on oil acreages.

The NNPC’s recommendation under the PIAB seeks a break up of Petroleum Licence into Petroleum Exploration Licence (PEL) - to prospect for petroleum, while the second component to be known as Petroleum Lease (PL), should be created to cover the production phase to search for, win, work, carry away and dispose of petroleum.

Courtesy: www.dailytrust.com.ng