Nigeria delays its Petroleum Industry Bill to the end of 2020

Nigeria has delayed again its Petroleum Industry Bill (PIB) due to the coronavirus outbreak. The text, which was due to be adopted in July 2020, is now expected to be passed by the end of the year.

Since 2008, Nigeria has been seeking to pass the Petroleum Industry Bill (PIB), which integrates and revises more than 15 different laws that regulate the hydrocarbon sector and empower the government to reform its oil and gas legal framework. After several failed attempts, the bill was rewritten and divided in different parts to accelerate its adoption: the Petroleum Industry Governance Bill (PIGB), dealing with the governance and the institutional framework; the Petroleum Industry Administration Bill (PIAB), regulating the issuances and revocations of licences, permits and operations; the Petroleum Industry Fiscal Bill (PIFB), concerning taxes, royalties and rents; and the Petroleum Host and Impacted Communities Bill (PHICB), establishing the rights and opportunities for host communities. So far, only the PIGB has been adopted by the National Assembly, but the president refused to transform it into law, in opposition to the privatisation of NNPC assets

In addition, the Nigerian government has announced that it will comply with OPEC+ agreement by July 2020. In May 2020, the country exceeded its crude oil production quota by 100,000 bbl/d. In June 2020, the OPEC+, which includes OPEC members and non-OPEC allies led by Russia, decided to extend oil production cuts until the end of July 2020; according to the agreements, countries which exceeded production quotas in May and June 2020, such as Iraq and Nigeria, must implement extra reductions over the July-September 2020 period.