The Nigerian oil and gas industry witnessed another paradigm shift as the long awaited Nigerias Petroleum Industry Governance Bill (PIGB) was passed by the senate last week. However, the PIGB would still require presidential assent before it becomes law.
In the event that the PIGB is eventually passed into law, five new commercial and governance bodies will be created to replace the Nigerian National Petroleum Corporation (NNPC) and the Department of Petroleum Resources (DPR) and a new regulatory agency, the Nigerian Petroleum Regulatory Commission (NPRC) would take over the functions of the Petroleum Inspectorate, the DPR, and the Petroleum Products Pricing Regulatory Agency.
In addition, two new companies, the Nigeria Petroleum Assets Management Company (NPAMC), and the National Petroleum Company (NPC) is to be created. The NPAMC would hold the assets and liabilities of the NNPC, whilst the NPC would operate as a fully independent commercial entity.