Overview

The Oil Block Allocations to Companies (Back-in-Rights) Regulations 2019 is a statutory instrument issued under the Petroleum Act of Nigeria. Signed by President Muhammadu Buhari as Minister of Petroleum Resources on February 26, 2019, these regulations establish the legal framework for the Federal Government's participation in oil blocks. The government has the right to acquire up to five-sixths (approximately 83.33%) of the interest in any oil prospecting license or oil mining lease at the time of award, conversion, or renewal. The Minister must invite the applicant for negotiations with at least 14 days' notice. Unrecovered proven costs incurred by the applicant are to be repaid from the government's share of future production without interest. If no agreement is reached on proven costs, the matter is settled by expert determination appointed by the President of the relevant professional body. The regulations also include provisions for revocation, savings, interpretation, and citation.

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