Experts Caution Against PIA Amendments Threatening Oil Sector Stability

Experts warn against proposed amendments to the Petroleum Industry Act (PIA) in Nigeria, fearing potential destabilization of the sector. The amendments, reportedly approved by President Bola Tinubu, aim to reduce the powers of the Nigerian National Petroleum Company Limited (NNPC) and alter the role of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The changes could impact the management of oil and gas exploration assets, including Joint Ventures (JVs) with international oil companies. The proposed amendments also suggest removing the Ministry of Petroleum Incorporated (MOPI) as a shareholder in NNPC, leaving the Ministry of Finance Incorporated (MOFI) as the sole shareholder.

These alterations could significantly impact the governance and operations of the oil and gas industry in Nigeria.