The House of Representatives has commenced moves to amend the Petroleum Industry Act to make provision for non-producing oil wells to lose their operational licences.
On September 26, 2024, the House passed for first reading “A bill for an Act to amend the Petroleum Industry Act, 2021 to provide for licensing requirements for the operation of oil wells, petroleum prospecting licenses and, for revocation of licenses from non-performing oil fields and for related matters.”
The bill sponsored by the member representing Ideato North/Ideato South Federal Constituency, Imo State, Ikenga Ugochinyere, is expected to make a return on the floor of the Green Chambers in the weeks ahead.
A copy of the bill cited by The PUNCH revealed that the proposed law seeks amendment to Section 81 through the insertion of new sub-sections 2 and 3.
On licensing requirements for petroleum mining lease, sub-section 2 provides that “A petroleum mining lease shall be granted under sub-section 1 of this section where the holder of a petroleum prospecting licence shows a minimum crude oil refining capacity of 50,000 barrels per day.”
The amendment in sub-section 2(a) allows licensees with little refining capacity to come together to operate.
