Overview

The Oil Pipelines Act (Chapter 338, Laws of the Federation of Nigeria 1990) is an Act enacted on 4th October 1956 to regulate the establishment and maintenance of pipelines incidental and supplementary to oilfields and oil mining in Nigeria. It provides for the grant of permits to survey routes for oil pipelines and licences to construct, maintain, and operate such pipelines. The Act is divided into five parts: Preliminary, Permit to Survey, Oil Pipeline Licence, Compensation, and Miscellaneous provisions. Part I defines key terms such as 'licence', 'Minister', and 'oil pipeline', and grants the Minister power to issue permits and licences subject to the Act. Part II outlines the process for applying for a permit to survey, including application requirements, fees, and the Minister's discretion to grant or refuse a permit with written reasons. Part III details the rights and obligations of licence holders, including restrictions on use of adjoining lands, deviations, and requirements for accommodation works. Part IV establishes court jurisdiction and assessment basis for compensation, including provisions for native communities and exoneration upon payment. Part V covers proceedings for withholding possession, penalties for hindrance, deviation for public purposes, breach consequences, disposal of pipelines, court sale of licences, fees, corporate offences, regulations, and delegation of Minister's powers. The Act applies to the entire Federation of Nigeria.

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