Section 9 Petroleum Industry Act 2021
Section 9 Petroleum Industry Act 2021 is about functions of the Commission for frontier basins. It is under Part III (The Commission) of Chapter 1 (Governance and Institutions) of the Act.
(1) The functions of the Commission with respect to frontier basins
shall be to–
(a) promote the exploration of the frontier basins of Nigeria:
(b) develop exploration strategies and portfolio management for the exploration of unassigned frontier acreages in Nigeria;
(c) identify opportunities and increase in format ion about the petroleum resources base within frontier basins in Nigeria; and
(d) undertake studies, analyse and evaluate unassigned frontier basins in Nigeria.
(2) Where data acquired and interpreted under a petroleum exploration Iicence, in the judgment of the Commission, require testing and drilling of identifiable prospects and leads, and no commercial entity has publicly expressed an intention of testing or drilling such prospects, the Commission shall, in line with section 64 (k) of this Act, request the services of NNPC Limited to drill or test such prospect and leads on a service fee basis to be charged to the Frontier Exploration Fund under this Act.
(3) Where commercial discovery is made under subsection (2), NNPC limited shall have the first right of refusal in the award of the acreage for subsequent development and other petroleum operations in such frontier
acreages under this Act.
(4) There shall be maintained, for the purpose of this section, a Frontier Exploration Fund which shall be 30% of NNPC Limited’s profit oil and profit gas as in the production sharing, profit sharing and risk service contracts.
(5) NNPC Limited shall transfer the 30% of profit oil and profit gas under subsection ( 4) to the Frontier Exploration Fund escrow account dedicated for the development of frontier acreages and utilise the funds to carry out exploration and development activities in the frontier acreages subject to appropriation by the National Assembly.
