The Petroleum Industry Bill 2020 has listed the specific functions of the three agencies that would replace the Nigerian National Petroleum Corporation when the proposed legislation is passed and assented to by the President, Major General Muhammadu Buhari (retd.).

A copy of the bill obtained by our correspondent on Monday named the three agencies to be created from the NNPC to include the Nigerian Upstream Regulatory Commission, the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian National Petroleum Company Limited.

The bill states that the NURC shall be responsible for the technical and commercial regulation of upstream petroleum operations and ensure compliance with all applicable laws and regulations governing the upstream petroleum operations.

It would ensure that such operations are carried out in a manner to minimise waste and achieve optimal government revenues among other functions.

The NMDPRA, according to the bill, shall be responsible for the technical and commercial regulation of midstream and downstream petroleum operations in the petroleum industry.

The bill explains that the functions of the NMDPRA would be limited to midstream and downstream petroleum operations in the petroleum industry.

It would ensure efficient, safe, effective and sustainable infrastructural development of midstream and downstream petroleum operations.

The agency is also expected to advise government agencies and other stakeholders on commercial matters relating to tariff and pricing frameworks.

The bill states that the NNPC Limited must be incorporated six months after the commencement of the Act by the minister under the Companies and Allied Matters Act, as a limited liability company.

It states that the minister shall at the incorporation of NNPC Limited consult with the Minister of Finance to determine the number and nominal value of the shares to be allotted.

The bill states that ownership of all shares in NNPC Limited shall be vested in the Federal Government at incorporation and held by the Ministry of Finance Incorporated on behalf of the government.

It adds, “The NNPC Limited and any of its subsidiaries shall conduct their affairs on a commercial basis without recourse to government funds and their memorandum and articles of association shall state the restrictions.”

The bill further provides that the cost of winding down the assets, interests and liabilities of NNPC shall be borne by the Federal Government.