Oil and Gas

4942 Words Apr 1st, 2011 20 Pages
OIL AND GAS ACCOUNTING: CRITICAL EXAMINATION OF THE APPLICATION OF THEORY TO PRACTICE IN NIGERIA
1.0 INTRODUCTION:
The natural resources of a nation, particularly the minerals, often constitute the lion's share of the nation's wealth. This is particularly true of the OPEC nations including Nigeria.
Prior to the development of accounting standards issued by the Nigerian Accounting Standards Board (NASB), the financial statements published by the oil and gas industry in Nigeria did not disclose adequate information about the investments held by the reporting enterprises. Also, there was a problem of incomparability of financial statement. This gave rise to the development of accounting standard to guide the preparation and presentation of
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The details of the bill include: UPSTREAM PETROLEUM OPERATIONS
a) Joint Venture Companies
Within twelve months from the effective date, each joint venture agreement shall be incorporated as a limited liability company owned by the parties to the existing joint ventures, in proportion to their existing participating interests. The essence of incorporation of the joint ventures is to have independent entities, capable of being financially self-sufficient (Ss 221-229).
b) Vesting of Acreages in the Directorate
All licenses and leases previously held by the NNPC, including Oil Prospecting Lease (OPL) and Oil Mining Lease (OML) in respect of which Production Sharing Contracts (PSCs) have been awarded shall be held by the Directorate on behalf of the Federal Government. All acreages, licence or lease areas in respect of the exploration, production and development of petroleum not previously granted prior to the commencement of the Act, will after the Act, be vested in the Directorate on behalf of the Federal Government of Nigeria (S 230).
c) Licences, Leases and Contracts
Upon the recommendation of the Directorate, the Minister may grant the following licences or leases to the National Oil Company or any indigenous oil company:-
Petroleum Prospecting

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