ABOUT THE OIL & GAS INDUSTRY
This section of the Oil bloc has been created to provide clarity in very simple terms of the structure of the industry and the role played by the Federal Government in driving and regulating the industry.
Oil business in Nigeria is supervised and regulated by the Federal Ministry of Petroleum Resources. The Ministry has several parastatals under its control that manages the different subsectors of the Oil industry.
The names and functions of these agencies/parastatals are:
The Nigerian National Petroleum Corporation (NNPC) undertakes commercial ventures in the petroleum industry on behalf of the Federal Government.
The Department of Petroleum Resources (DPR) is the technical Department of the Ministry that regulates and monitors activities of the oil and gas industry.
The Petroleum Training Institute (PTI) undertakes human capacity development for the Nigeria petroleum industry as a result, fulfilling the Federal Government’s Local Content Policy by developing and training competent manpower specifically for the oil/gas and allied companies.
The Petroleum Technology Development Fund was established by Act No 25 of 1973. The legislation invested the Fund with the responsibility of training and educating Nigerians in the petroleum industry.
Petroleum Equalization Fund Management Board (PEFMB) oversees petroleum bridging activities, which is the responsibility of reimbursing marketers the cost of transporting white petroleum products from the supply points to the retail outlets.
The Nigeria Nuclear Regulatory Agency (NNRA) is responsible for regulating and monitoring all activities involving development and use of nuclear radioactive materials in the country.
The Petroleum Products Pricing and Regulatory Agency (PPPRA) is an Agency of Government responsible for fixing the benchmark prices of petroleum products and regulating and monitoring the transportation and distribution of petroleum products in Nigeria
The Nigerian Content Development and Monitoring Board (NCDMB) is the sole Agency of the Federal Government vested with the responsibility of implementing Nigerian Content in the oil and gas industry.
The Oil Industry is broadly separated into three subsectors which are;