The Petroleum Industry Bill 2020 named the three agencies to be created from the NNPC to include the Nigerian Upstream Regulatory Commission (NURC), the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Nigerian National Petroleum Company Limited.
The PIB also listed the specific functions of the three agencies when the proposed legislation is passed and assented to by the President.
The bill states that NURC shall be responsible for the technical and commercial regulation of upstream petroleum operations and ensure compliance with all applicable laws and regulations governing the upstream petroleum operation. It would also ensure that such operations are carried out in a manner to minimize waste and achieve optimal government revenues among other functions.
According to the bill, NMDPRA shall be responsible for the technical and commercial regulation of midstream and downstream petroleum operations in the petroleum industry. The bill explained that NMDPRA would be limited to midstream and downstream petroleum operations and ensure efficient, safe, effective and sustainable infrastructural development of midstream and downstream operations.
NMDPRA is also expected to advise government agencies and other stakeholders on commercial matters relating to tariff and pricing framework.
The PIB states that the NNPC Limited must be incorporated six months after the commencement of the Act by the minister, under the company and Allied Matters Act, as a limited liability company.
It further states that the minister shall at the incorporation of NNPC Limited consult with the Minister of Finance to determine the number and nominal value of the shares to be allotted.
states that the minister shall at the incorporation of NNPC Limited consult with the Minister of Finance to determine the number and nominal value of the shares to be allotted. The ownership of all shares in NNPC Limited shall be vested in the Federal Government at incorporation and held by the Ministry of Finance incorporated on behalf of the government.
The bill adds that the NNPC Limited and any of its subsidiaries shall conduct their affairs on a commercial basis without recourse to government funds and their memorandum and articles of association shall state the restriction.
The also provides that cost of winding down assets, interests and liabilities of NNPC shall be borne by the Federal Government.