Overview

The Petroleum Act 1969 (Chapter P10, Laws of the Federation of Nigeria) is a Nigerian federal law that vests ownership and control of all petroleum resources in the State and regulates exploration, production, refining, and distribution. Key provisions include: Section 1 vests petroleum ownership in the State for all lands in Nigeria, territorial waters, continental shelf, and Exclusive Economic Zone. Section 2 empowers the Minister to grant oil exploration licences, oil prospecting licences, and oil mining leases, exclusively to companies incorporated in Nigeria. Section 3 requires a licence from the Minister to construct or operate a refinery. Section 4 mandates licences for importing, storing, selling, or distributing petroleum products, with exemptions for small quantities of kerosene. The Act also covers price control (Section 6), rights of pre-emption (Section 7), powers of public officers (Section 8), regulations (Section 9), dispute resolution by arbitration (Section 11), delegation of powers (Section 12), and offences (Sections 5 and 13). The First Schedule details terms for licences and leases; the Second Schedule addresses rights of pre-emption; the Third and Fourth Schedules deal with repeals and transitional provisions. The Act was enacted on 27 November 1969 and has been amended to include references to the Exclusive Economic Zone.

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