Oil and Gas Law.

11022 WordsAug 11, 201145 Pages
A THESIS ON ENERGY LAW THAT CRITICALLY EXAMINES THE LEGAL ISSUES IN THE DEREGULATION OF THE DOWNSTREAM SECTOR OF THE NIGERIA INDUSTRY: CONSIDERING THE ARGUMENTS IN FAVOUR AND AGAINST DEREGULATION INCLUDING ISSUES PERTAINING TO OPERATION OF THE REFINERY ,WITHDRAWAL OF OIL SUBSIDIES AND APPROPRIATE PRICING IN A LIBERALISED ECONOMY. . INTRODUCTION. Nigeria is blessed with vast quantity of oil making it the 6th largest oil exporter in the organization of petroleum exporting country. Oil is a major source of energy in Nigeria and the world in general. Oil being the mainstay of the Nigerian economy plays a vital role in shaping the economic and political destiny of the country. Although Nigeria’s oil industry was founded at the…show more content…
Namely the downstream and the upstream sector. Exploration and production activities make up the upstream sector .activities subsequent to production of crude oil are called downstream operations. This includes refining marketing and distribution. some oil companies choose to operate in one sector only for example exploration and production. they are said to have an upstream interest. Today, the oil industry is in particularly difficult s situation in Nigeria. This hardship has both the international and national dimension. At the global level, with the breakdown of global ideological barriers, opportunities for international oil exploration are available in geographical/ geological areas which we did not fore see a few years ago. The political and economic opening of high potential area previously closed to western investment is creating immense demands on the sources of private western capital. low oil pricing have also constrained industry funds available for investments in further exploration activities in the industry worldwide, including Nigeria. At the national level the inability of government to raise its quota in the joint venture creation has led to the production sharing contracts. However we propose to focus on the legal frame work for appropriate funding of the oil industry and this is done within the contractual framework of agreement for oil
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