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20 Jan

OIL AND GAS 2.1C PIPELINES (COMMON USAGE, TERMINATION, ETC)

COMMON USAGE: This refers to a situation where two or more parties share an existing pipeline which goes to the same destination. This is NOT prohibited. Provided the conditions for use shall be determined by the parties or by the minister.

USE BY THIRD PARTY: Section 18 of the Oil Pipelines Act provides: any person other than the owner of the pipeline who seeks a right to have conveyed by the pipeline on his behalf any of the things mentioned in subsection (2) of Section 11 of this Act which the pipeline is designed to convey should make an application to the Minister in the prescribed manner.

Termination:

  • By Lapse of Time: The license terminates once the time (20 years) has lapsed[1].
  • By the Licensee: Section 17(3) OPA provides: The holder of a licence may at any time during the term of licence determine[2] the licence in respect of all or any part of the land included therein by giving to the Minister not less than three months previous notice in writing to that effect.
  • By breach of Terms, Conditions and requirements in the License: provided due notice has been given to him (Section 27) but he still fails to remedy the breach[3].

The termination does not exculpate the holder from his existing liabilities[4].

SABOTAGE: can be regarded as the deliberate destruction of property. Section 1 Petroleum Production and Distribution (Anti-Sabotage) Act provides; any person who; (a) wilfully does anything with intent to obstruct or prevent the production or distribution of petroleum products in any part of Nigeria… shall… be guilty of the offence of sabotage under this Act. Sabotage has occurred in Areku, ijegun, osisioma. Death sentence or 21 years is prescribed in Section 2 PPDASabotageAct.

 

[1]  From the interpretation of Section 17(1) OPAct.

[2] In this context means to terminate.

[3] See Section 18(9) and 27 OPA.

[4] See for example Section 27(2) OPA.

Isochukwu

Quite eccentric really

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