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Nigerian National Petroleum Corporation ActChapter 320

Laws of the Federal Republic of Nigeria 10

Arrangement of sections

Part !

Establishment of the corporation

1. Establishment of the NigerianNational Petroleum Corporation.

2. Alternate Chairman. 3. Managing Director andSecretar.

!. Staff generall. ". #eneral duties of the

Corporation.$. Po%ers of the Corporation. &. 'inancial pro(isions. ). *orro%ing po%ers.

+. Disposal of surplus funds.

Part !!

Petroleum ,nspectorate

1-. Petroleum ,nspectorate. 11. ead of ,nspectorate to beappointed b the Minister/ etc.

Part !!!

0egal Proceedings

12. 0imitation of suits against theCorporation/ etc.

13. Ser(ice of documents. 1!. estriction on eecution againstthe propert of the Corporation.

1". ,ndemnit of members of the*oard and emploees of the

Corporation.

Part !"

Miscellaneous and Supplementar

1$. Certain eemptions from rates/etc.

1&. egulation of public access toCorporation s premises.

1). Protection of certain rights.

1+. Annual reports. 2-. Application of certainenactments.

21. Protection of Corporation s land.

22. ,nterpretation 23. Short title and repeal.

First #chedule

Supplementar pro(isions relating to tenure of office/ etc. of members of the board

#econd #chedule4ransitional pro(isions

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627 4here shall be appointed b the Corporation a Secretar to the Corporation %ho shall not be a memberof the *oard and %ho shall uentl paable b the Corporation.

'%617 Sub9ect to the pro(isions of this Act/ the Corporation shall be charged %ith the dut of:

6a7 eploring and prospecting for/ %oruiring/ possessing and disposingof petroleum;

6b7 refining/ treating/ processing and generall engaging in the handling of petroleum for the

manufacture and production of petroleum products and its deri(ati(es;6c7 purchasing and maruipping and maintaining tan< farms and other facilities for the handling and

treatment of petroleum and its products and deri(ati(es;

6f7 carring out research in connection %ith petroleum or anthing deri(ed from it and promoting

acti(ities for the purpose of turning to account the results of such research;

6g7 doing anthing re>uired for the purpose of gi(ing effect to agreements entered into b the 'ederal#o(ernment %ith a (ie% to securing participation b the #o(ernment or the Corporation in

acti(ities connected %ith petroleum;6h7 generall engaging in acti(ities that %ould enhance the petroleum industr in the o(erall interest of

Nigeria; and

6i7 undertauires or the Corporation considers it appropriate to underta

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(%617 4he Corporation shall ha(e po%ers to do anthing %hich in its opinion is calculated to facilitate thecarring out of its duties under this Act including/ %ithout limiting the generalit of the follo%ing/the po%er @

6a7 to hold/ manage and alienate mo(able and immo(able propert;

6b7 to purchase or other%ise ac>uire or tauire in the eercise of its functions under this Act.

627 4he Corporation shall not/ %ithout the appro(al of the National Council of Ministers/ borro% an sum ofmone %hereb the amount in aggregate outstanding on an loan or loans at an time eceeds

such amount as is for the time being specified b the National Council of Ministers.

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637 Not%ithstanding subsection 627 of this section/ a person lending to the Corporation shall not be bound to

en>uire %hether the borro%ing is %ithin the po%er of the Corporation or not.6!7 ?here an sum re>uired aforesaid:

6a7 is to be in currenc other than naira; and6b7 is to be borro%ed b the Corporation other%ise than temporaril/ the Corporation shall not borro%

the sum %ithout the prior appro(al of the National Council of Ministers.

6"7 'or the purposes of this section/ an mone borro%ed b the Corporation from a subsidiar thereof or ban such subsidiar from the Corporation or an other subsidiar thereof shall be disregarded.

%4he National Council of Ministers ma issue to the Corporation such directions as it ma thin< necessar as to

the disposal of an surplus funds of the Corporation/ and sub9ect to an such directions/ theCorporation ma in(est its funds and maintain a general reser(e.

Part !!Petroleum ,nspectorate

10%617 4here shall be established a department to be

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Part !!!

0egal Proceedings

12%617 Not%ithstanding anthing in an other enactment/ no suit against the Corporation/ a member of the *oard

or an emploee of the Corporation for an act done in pursuance or eecution of an enactmentor la%/ or of an public duties or authorit/ or in respect of an alleged neglect or default in theeecution of such enactment or la%/ duties or authorit/ shall lie or be instituted in an court unlessit is commenced %ithin t%el(e months net after the act/ neglect or default complained of or/ in thecase of a continuance of damage or in9ur/ %ithin t%el(e months net after the ceasing thereof.

627 No suit shall be commenced against the Corporation before the epiration of a period of one month after

%ritten notice of intention to commence the suit shall ha(e been ser(ed upon the Corporation bthe intending plaintiff or his agent; and the notice shall clearl and eplicitl state the cause ofaction/ the particulars of the claim/ the name and place of abode of the intending plaintiff and therelief %hich he claims.

13%4he notice referred to in section 12627 of this Act and an summons/ notice or other document re>uired or

authorised to be ser(ed upon the Corporation under the pro(isions of this Act or an other enactment orla% ma be ser(ed b deli(ering the same to the Chairman or the Managing Director of theCorporation/ or b sending it b registered post addressed to the Managing Director at the principaloffice of the Corporation.

1&%,n an action or suit against the Corporation no eecution or attachment or process in the nature thereof shall

be issued against the Corporation but an sums of mone %hich ma/ b the 9udgment of the court/ bea%arded against the Corporation shall/ sub9ect to an directions gi(en b the court %here notice ofappeal has been gi(en b the Corporation/ be paid from the general reser(e fund of the Corporation.

1'%E(er member of the *oard/ agent/ auditor or emploee for the time being of the Corporation shall beindemnified out of the assets of the Corporation against an liabilit incurred b him in defending anproceedings %hether ci(il or criminal/ if an such proceeding is brought against him in his capacit as

such member/ agent/ auditor or emploee as aforesaid.

Part !"

Miscellaneous and Supplementar

1(%617 5il pipelines and other installations belonging to the Corporation shall not be regarded as hereditamentsor tenements to be (alued for rating purposes; and for the purposes of this subsection/ theepression 8oil pipelines and other installations8 includes oil rigs/ refineries/ po%er generating

plants/ pumping stations/ tan< farms and similar installations but does not include office orresidential buildings.

627 Ecept as pro(ided in subsection 617 of this section/ nothing in this Act shall be deemed to eempt the

Corporation from liabilit for an ta/ dut/ rate/ le( or other charge %hatsoe(er/ %hether generalor local=

Pro(ided that the Corporation shall not be liable to pa an such ta/ dut/ rate/ le( orchargeunless e(er compan liable to ta under the Petroleum Profits 4a Act is alsoliable for suchpament.

1)%617 Sub9ect to the pro(isions of this Act/ the Criminal ustice 6Miscellaneous Pro(isions7 Act or an other

enactment/ the Corporation ma ma

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6b7 regulating the hours during %hich/ the means %hereb/ the purposes for %hich and the conditionssub9ect to %hich members of the public or an class of members of the public ma ha(eaccess to or egress from an such premises or portion thereof;

6c7 for ensuring the maintenance of good order and discipline amongst members of the public at an

time %hen upon an such premises;

6d7 prohibiting or restricting the use of land o(er/ underneath or near %hich the Corporation has an

installation and for pre(enting the unauthorised or improper use of or %illful or negligent actsoccasioning in9ur to an propert o%ned/ (ested in/ occupied b or under the control of theCorporation.

627 *e:la%s made under the pro(isions of this section shall not come into force until the ha(e been

appro(ed b the Minister and published in such manner as he shall direct or until such later date asma be specified in the be:la%s.

637 *e:la%s made under this section ma pro(ide that for the contra(ention of such be:la%s there ma be

imposed on the con(iction of an person for an such contra(ention a fine not eceeding N"-- or/in default of pament thereof/ imprisonment for a term not eceeding t%el(e months.

6!7 'or the purposes of this section/ members and emploees of the Corporation shall not be deemed to be

members of the public.

6"7 ,n this section/ 8premises includes lands/ plants and ancillar %oruence of the operation of the pro(isions of this Act; and6b7 the determination of an right or interest in an propert ac>uired or possessed b the Corporation/

and the amount of compensation paable as prescribed under the 0and Bse Act.1%4he Corporation shall prepare and submit to the National Council of Ministers/ through the Minister not later

than 3-th une in each financial ear/ a report on the acti(ities of the Corporation during theimmediatel preceding financial ear/ and shall include in such report a cop of the audited accounts ofthe Corporation for that ear and the auditors report thereon.

20%'or the purposes of this Act/ the Corporation shall be sub9ect to all rights/ po%ers/ obligations/ and duties to

%hich a licensee or lessee b (irtue of the Petroleum Act and a licensee and the holder of a permit b(irtue of the 5il Pipelines Act are sub9ect/ so ho%e(er that in the application thereof:

6a7 paragraph 12 of the 'irst Schedule to the Petroleum Act 6%hich pro(ides for the relin>uishment of

one:half of the leased area after ten ears of an oilmining lease7; and6b7 paragraphs 3 and $ of the said Schedule 6%hich relate to the duration of an oil eploration licence

and oil prospecting licence/ respecti(el7; and

6c7 such other pro(isions of those enactments as the Minister ma from time to time specif b public

notice/ shall be ecluded.

21 %617 0and (ested in the Corporation shall not be liable to be ac>uired compulsoril under an enactment orla%; and not%ithstanding anthing in an other enactment or la%/ no mining operations shall be

carried on/ in or under an land (ested in the Corporation or an land o(er %hich the Corporationis entitled to rights of support for the benefit of lands so (ested ecept %ith the prior consent in%riting of the Minister.

627 'or the purpose of this section/ 8land8 includes an land under %ater beond the territorial %aters of

Nigeria to %hich Nigeria is for the time being entitled to an eclusi(e rights.

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22%617 ,n this Act/ unless the contet other%ise re>uires :

8*oard8 means the *oard of Directors of the Corporation appointed pursuant to section 1 of thisAct;

8Chairman8 means the Chairman of the Corporation;8Corporation8 means the Nigerian National Petroleum Corporation established pursuant to section1 of this Act and includes an %holl o%ned subsidiar thereof and/ sub9ect to the pro(isions ofthis Act includes the ,nspectorate;

8crude oil8 has the meaning assigned thereto b section 1" 617 of the Petroleum Act;8financial ear8 means the period of t%el(e months beginning on 1st. anuar and ending on 3 1 st.December;

8,nspectorate8 means the Petroleum ,nspectorate established pursuant to Part ,, of this Act;

8member8 means a member of the *oard and includes the Chairman;8Minister8 means the Minister of Petroleum esources;

8mining operations8 includes prospecting for and getting of minerals or petroleum and anacti(ities preparator or incidental thereto;8petroleum8 has the meaning assigned thereto b section 1"617 of the Petroleum Act;8plant8 includes machiner/ structures/ installations/ fitures and other e>uipment and buildings or

other structures housing an of the foregoing.

627 'or the a(oidance of doubt/ it is hereb declared that ser(ice in the Corporation shall/ for the purposes

of the 4rade Disputes 6Essential Ser(ices7 Act/ be deemed to be essential.

23%617 4his Act ma be cited as the Nigerian National Petroleum Corporation Act.

627 As from the date of commencement of this Act/ the Nigerian National 5il Corporation Act 1+&1 shall

stand repealed and/ accordingl/ the Nigerian National 5il Corporation established under that Actshall be dissol(ed and the transitional and sa(ing pro(isions of Part * of the Second Schedule tothis Act shall ha(e effect not%ithstanding anthing contained herein or in an other pro(ision ofthis Act.

First #chedule

Part ASupplementar Pro(isions relating to tenure of office/ etc. of members of the *oard.

Tenure of Office

1%617 Sub9ect to paragraph 3 of this Schedule and the other pro(isions of this Act/ a member of the *oard %ho isnot an e:officio member shall/ unless he pre(iousl relin>uishes his membership on the *oard:

6a7 hold office for three ears on such terms as ma be specified in his letter of appointment; and

6b7 be eligible for re:appointment for a further term of three ears/ but shall (acate his office at theepiration of a period of si ears.

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627 No member of the *oard shall be entitled to appoint an alternate or deput to represent him at ameeting.

2% Sub9ect to paragraph 3 of this Schedule/ members of the *oard/ other than e:offcio members/ shall be paidout of mones at the disposal of the *oard such remuneration and allo%ances as the Minister ma/ %ith

the appro(al of the National Council of States/ determine.

3%4he pro(isions of paragraphs 1 and 2 of this Schedule shall not appl to the Chairman.

Proceedings

&%Sub9ect to this Act and section 2& of the ,nterpretation Act 6%hich pro(ides for decisions of a statutor bod tobe ta

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12%An contract or instrument/ %hich if made or eecuted b an person not being a bod corporate %ould notbe re>uired to be under seal/ ma be made or eecuted on behalf of the Corporation b an persongenerall or speciall authorised to act for that purpose b the *oard.

13%An document purporting to be a contract/ instrument or other document dul signed or sealed on behalf of

the Corporation shall be recei(ed in e(idence and/ unless the contrar is pro(ed/ be presumed %ithout

further proof to ha(e been so signed and sealed.

1&%4he (alidit of an proceedings of the *oard shall not be affected :

6a7 b an (acanc in the membership of the *oard; or

6b7 b an defect in the appointment of a member of the *oard; or6c7 b reason that a person not entitled to do so too< part in the proceedings.

Duty of Members - Disclosure of Interest

1'%A member of the *oard %ho has an interest in an compan or other concern %ith %hich the Corporationproposes to ma

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&%Not%ithstanding the dissolution of the old Corporation b section 23 of this Act but sub9ect to such directionsas ma be issued b the *oard/ an person %ho immediatel before the appointed da held office underthe old Corporation shall/ on the appointed da/ be deemed to ha(e been transferred to the ne%Corporation on terms and conditions not less fa(ourable than those obtaining immediatel before theappointed da; and ser(ice under the old Corporation shall be deemed to be ser(ice under the ne%

Corporation for pensions purposes.

Part C

,eneral

'%?ithin the t%el(e months net after the ma