INTRODUCTION

On 28 September 2020, President Muhammadu Buhari presented the Petroleum Industry Bill 2020 (the “PIB”) to the National Assembly for its consideration and subsequent passage into law. The PIB seeks to enhance the oil and gas industry by creating efficient and effective governing institutions, strengthening the regulatory framework, improving the fiscal terms and revenue generation, and ensuring the sustainable

development of host communities. This report seeks to analyze the key provisions of the PIB and the implications on stakeholders in the Petroleum industry.

BACKGROUND TO THE PIB 2020The enactment of an encompassing legislation for the Nigerian petroleum industry has been anticipated for over a decade now. The first draft of a PIB was submitted to the 6th National Assembly

A (i) ANALYSIS OF THE PETROLEUM INDUSTRY BILL, 2020

A (ii) ANALYSIS OF THE CBN FRAMEWORK FOR FINANCING OF NATIONAL MASS METERING

PROGRAMME

A (i) ANALYSIS OF THE PETROLEUM INDUSTRY BILL, 2020

in September 2008. However, it stalled due to the need for the PIB to address key concerns affecting several stakeholder groups which were categorized broadly under institution & governance, administration, fiscal terms, and host communities. Consequently by the 8th National Assembly, the Bill was unbundled into four (4) main components: the Petroleum Industry Governance Bill (PIGB), the Petroleum Industry Administration Bil l, the Petroleum Host Community Bill (PHCB) and the Petroleum Industry Fiscal Bill (PIFB). It was decided that the unbundled components would be addressed and passed into law as distinct laws. The PIGB sought to revitalize the regulatory framework of the Petroleum Industry, through the creation of regulatory institutions and commercial entities. It was the forerunner of all four bills as it had been subjected to stakeholder deliberations and legislative activities and was eventually passed by the National Assembly in 2018 and transmitted to the Presidency for assent. The failure to sign the Bill by the President since then had further stalled the passage of the Bill.

Notwithstanding, the PIB 2020 is a harmonization of the PIGB and the other unbundled components mentioned above. Thus, the PIB is an elaborate and encompassing piece of legislation that would repeal existing legislations in the Petroleum Industry and serve as the single governing legislation.

KEY HIGHLIGHTS OF THE PIBThe PIB seeks to establish a number of regulatory institutions and policies, which can be broadly classified into Regulatory framework, Commercial institutions and Ancillary provisions. The foregoing will be analyzed below.

£ REGULATORY FRAMEWORKa. Minister of Petroleum

Under the PIB, the Minister of Petroleum Resources (“the Minister”) is responsible for the formulation and administration of government policies, as well as the general supervision over all operations in the Petroleum industry. He also has the power to grant and revoke petroleum prospecting licenses and petroleum mining leases through processes e s t a b l i s h e d i n t h e P I B , u p o n t h e recommendation of the Nigerian Upstream Regulatory Commission. This deviates from the provisions of the PIGB which had granted the

powers to grant and revoke licenses solely to the regulatory commission, and the provisions of the Petroleum Act which had made those powers only exercisable by the Minister.

However, there are concerns that this could negatively influence the confidence of investors in the independence and transparency of the Petroleum industry. This is mainly due to the possibility of political interference from the Minister. Furthermore, it runs contrary to the PIB's objective to create efficient and effective governing institutions, with clear and separate roles for the petroleum industry; and promote transparency, good governance and accountability in the administration of the petroleum resources of Nigeria. Thus, it is advised that the power to grant or revoke licenses and leases in the upstream sector of the Petroleum Industry, be reserved only for the Nigerian Upstream Regulatory Commission, in keeping with the goals of creating strong, independent regulatory authorities as obtainable in other industries such as the Telecommunications sector.

b. Nigerian Upstream Regulatory CommissionThe PIB seeks to establish the Nigerian Upstream Regulatory Commission (“the Commission”), as the apex regulatory body for all technical, operational and commercial activities in the upstream sector of the petroleum industry. Its functions, which are restricted to activities in the upstream sector, include:

i. Enforce, administer and implement laws, regulations and policies relating to upstream petroleum operations;

ii. Ensure compliance with applicable national and international petroleum industry policies, standards and practices for upstream petroleum operations;

iii. Administer, monitor and enforce compliance with the terms and conditions of leases and l i cences gran ted and permi ts and authorisations issued to a company in respect of upstream petroleum operations;

iv. Set, define and enforce approved standards and regulations for design, construction, fabrication, operation and maintenance of plants, installations and facilities used or to be used in upstream petroleum operations.

Notably, subject to the approval of the Minister,

3

the Commission shall have the powers to renew and suspend licenses and leases in the upstream sector of the Petroleum Industry. Thus, while the Minister is responsible for the grant or revocation of licenses and leases, the Commission is responsible for renewal or suspension of licenses or leases.

It may be argued that this is an unnecessary duplication of roles and powers, as it negates the PIB's objective to create efficient and effective governing institutions, with clear and separate roles for the petroleum industry.

c. Nigerian Midstream and Downstream Petroleum Regulatory Authority

Furthermore, the PIB seeks to establish the Nigerian Midstream and Downstream Petroleum Regulatory Authority (“NMDRA”), empowered to make regulations for the technical, operational and commercial activities in the midstream and downstream sector of the petroleum industry. Most importantly, NMDRA is solely empowered to grant, issue, modify, extend, renew, review, suspend, cancel, reissue or terminate licences, permits and authorisations for midstream and

downstream petroleum operations. This connotes greater independence of the NMDRA from the undue political interference, which would increase the confidence of investors in the sector.

Furthermore, the NMDRA is also mandated to provide pricing and tariff frameworks for natural gas in midstream and downstream gas operations and petroleum products based on the fair market value of the products. This signifies the intentions to fully deregulate the sector and allow market forces determine the pricing of petroleum products in the sector. It further strengthens the midstream and downstream operational activities and expands other aspects of the value chain.

There are various schools of thought that question the need for separate regulatory agencies for the upstream and downstream sectors of the petroleum industry as it may amount to duplication of roles and unnecessary administrative bureaucracy which may prevent the agencies from remaining truly independent and focusing on their core mandate(s).

4

· COMMERCIAL INSTITUTION The PIB provides that within 6 months of its commencement, a limited liability company called the Nigerian National Petroleum Company Limited would be incorporated to replace the Nigerian National Petroleum Corporation (NNPC) and the assets, interests and liabilities of the then-defunct NNPC shall be transferred to the new NNPC Ltd, subject to consultation between the Minister of Petroleum and the Minister of Finance. Furthermore, the shares of the Federal Government shall be held by the Ministry of Finance Incorporated (MOFI). In further developments, it has been clarified that this move would be the commercialization of NNPC rather than a replacement. It therefore appears that the NNPC would be restructured to ensure that it operates as a commercial and profitable entity.

Upon incorporation, the shares of the NNPC Ltd are not transferable unless approved by the Government. However, the PIB states that where the shares of the NNPC Ltd are to be transferred, it shall be subject to an open, transparent and competitive bidding process. This hints at the Government's intention to eventually divest its interest in NNPC Ltd, hereby providing for greater autonomy. It is also expected that the shares of the NNPC Ltd would be listed on the Nigerian Stock Exchange to allow for investments from local and foreign investors.

Furthermore, the PIB mandates the NNPC Ltd to engage in the development of renewable resources in competition with private investors and promote the domestic use of natural gas through development and operation of large-scale gas utilization industries. It is believed that this is meant to improve the viability of those sectors through increased competition and attract investments into the midstream and downstream sector of the natural gas sector.

£ ANCILLARY MATTERSi. GAS FLARING PENALTIES The PIB provides that any licensee, lessee or

operator who flares natural gas commits an offence and shall be liable to a fine as prescribed by the Commission. It states further that such fine would not be eligible for cost recovery or tax deductible.

However, it provides some exceptions where gas flaring would not attract a fine where it is a case of emergency, where the Commission grants an exemption, and where it is an acceptable safety practice under established regulations. In a bid to ensure full compliance, the PIB requires every licensee to install a metering equipment on every facility where natural gas may be flared. It further stipulates that such metering equipment shall conform to the standard and specifications as provided by the Commission. This provision is a commendable one, owing to the fact it will undoubtedly reduce the revenue lost to gas flaring and in effect improve the environment.

ii. MIDSTREAM GAS INFRASTRUCTURE FUND

The PIB provides for the establishment of a Midstream Gas Infrastructure Fund, which shall be administered and supervised by a Govern ing Counc i l respons ib le fo r determining the eligible investments under the fund. It is envisaged that the Fund would be ut i l ised for equity investments into infrastructural development in the midstream gas sector with a view to increasing the domestic consumption of Natural Gas. Furthermore, the PIB states that upon the successful disintegration of the Petroleum Equalisation Fund (PEF), every reserve fund in the PEF shall be transferred to the Midstream Gas Infrastructure Fund.

iii. HOST COMMUNITIES DEVELOPMENT TRUST

In order to foster sustainable growth, peace and harmonious coexistence between licensees/lessees and host communities, the PIB mandates every any company which holds an interest in a petroleum prospecting licence or petroleum mining, or an interest in a licence for midstream petroleum operations (known as a “settlor”) to incorporate a trust fund for the benefit of the host communities. Where it is a collection of companies operating under a Joint Operating Agreement, the Operator under the agreement shall be regarded as the Settlor for the purpose of the host communities trust fund.

Each settlor is mandated to contribute to the trust fund an amount equal to 2.5% of its capital

5

expenditure for the preceding calendar year. This capital expenditure relates only petroleum operations which affect the host communities in question. Most importantly, failure to fulfil this obligation may serve as a ground for revocation of a license or lease granted.

Furthermore, subject to the approval of the Commission or NMDRA as the case may be, the settlor is empowered by the PIB to

determine the membership and criteria for appointments into the Board of Trustees for the trust fund. The PIB prescribes that persons appointed to the Board must be of high integri ty and professional standing. Interestingly, the PIB states that persons appointed to the Board may not necessarily be indigenes of the host communities.

IMPLICATIONS ON THE BUSINESS ENVIRONMENT OF THE PETROLEUM SECTOR

The PIB proposes to “establish a progressive fiscal framework that encourages investment in the Nigerian petroleum industry, balancing rewards with risk and enhancing revenues to the Federal Government of Nigeria”. One major implication of the PIB on the business environment is the provision of a Hydrocarbon Tax which would be assessed and collected by the Federal Inland Revenue Service (FIRS) in addition to the Companies Income Tax and Tertiary Education Tax, as it relates to taxable petroleum operations. The Hydrocarbon Tax applies to crude oil, condensates and natural gas liquids produced from associated gas and its application covers companies engaged in upstream petroleum operations in the onshore, shallow water and deep offshore. However, it is important to note that the tax does not apply to associated and non-associated natural gas as well as condensates and natural gas liquids produced from non-associated gas in fields or gas processing plants.

The Commission on the other hand, shall be responsible for the determination and collection of rents and royalties and its enforcement as well as related payments or production shares, where the model contract includes provisions related to production sharing, profit sharing or risk service provisions. These provisions to which the tax would apply should be noted as oil, condensates and gas liquids from associated gas, but those culled from non-associated natural gases are not covered. Also, the costs of production of associated gas upstream of the measurement point shall be allocated to crude oil for the purposes of the tax while the cost solely attributed to production of associated gas, that is, not just upstream of the measurement shall be chargeable under the Companies Income Tax Act (CITA).

The PIB also provides for allowable deductions for computing the adjusted profit of a company in

The PIB proposes to “establish a progressive fiscal framework that encourages investment in the Nigerian petroleum industry, balancing rewards with risk and enhancing revenues to the Federal Government of Nigeria”. One major implication of the PIB on the business environment is the provision of a Hydrocarbon Tax which would be assessed and collected by the Federal Inland Revenue Service (FIRS) in addition to the Companies Income Tax and Tertiary Education Tax, as it relates to taxable petroleum operations. The Hydrocarbon Tax applies to crude oil, condensates and natural gas liquids produced from associated gas and its application covers companies engaged in upstream petroleum operations in the onshore, shallow water and deep offshore. However, it is important to note that the tax does not apply to associated and non-associated natural gas as well as condensates and natural gas liquids produced from non-associated gas in fields or gas processing plants.

The Commission on the other hand, shall be responsible for the determination and collection of rents and royalties and its enforcement as well as related payments or production shares, where the model contract includes provisions related to production sharing, profit sharing or risk service provisions. These provisions to which the tax would apply should be noted as oil, condensates and gas liquids from associated gas, but those culled from non-associated natural gases are not covered. Also, the costs of production of associated gas upstream of the measurement point shall be allocated to crude oil for the purposes of the tax while the cost solely attributed to production of associated gas, that is, not just upstream of the measurement shall be chargeable under the Companies Income Tax Act (CITA).

The PIB also provides for allowable deductions for computing the adjusted profit of a company in upstream petroleum operations related to crude oil for any accounting period. These include, rents, operating expenses and any amount contributed to any fund, scheme or arrangement approved by the Commission, amongst others. The deductions not allowed, however, include expenditure incurred as a penalty, natural gas flare fees or imposition relating to natural gas flare as well as amounts incurred in respect of a tax.

The PIB provides for assessable profits and losses as well as chargeable profits and allowances. It must however be noted that analysis of the

chargeable taxes provided in the Bill show moderately high taxes. For example, a tax of 42.5% is applicable on the profit from crude oil for onshore areas for petroleum mining leases, 37.5% of the profit from crude oil for shallow water areas for petroleum mining leases as well as 10% of profit from crude oil for deep offshore areas for new l icences and leases granted after the commencement of the Bill, amongst others.

SHORTCOMINGS OF THE PIBThe PIB is a highly commendable effort by the Government to bring the much-needed reform to the Petroleum industry and encourage investment into the sector. However, there are certain shortcomings which should be addressed before the PIB is enacted into law:

a. LICENSING IN THE UPSTREAM SECTOR As noted earlier, the grant and revocation of

licenses or leases in the upstream sector of the Petroleum industry is subject to the approval of the Minister. Notwithstanding the requirement that such approval be based on the recommendation of the Commission, it is believed that the increased risk of undue political influence and lack of transparency of licence issuance in the sector may not have been cured by the PIB in light of this provision.

Notably, under the PIB, the grant and revocation of licenses in the midstream and downstream sector of the Petroleum industry, is vested solely on the NMDRA. It is expected that this would ensure the independence of the NMDRA, as well as promote the transparency of the bidding process for licenses. Therefore, under the present structure, it is advised that similar approval for the upstream sector be entrusted to the Nigerian Upstream Regulatory Commission with functions to determine the competence, and capability of prospective licensees and lessees. However as stated earlier, it is suggested that a single regulatory authority for the upstream and downstream sectors which is vested with the power to grant and revoke licenses be adopted.

b. TENURE Under the PIB, the appointment of members of

the Commission or the NMDRA is made by the President subject to the confirmation by the Senate. However, the removal of the aforementioned members is under the authority of the President, without the

6

confirmation of the Senate. Notwithstanding the grounds for removal stated in the PIB, this could undermine the independence of the regulatory authorities. It is recommended that the removal of members of the regulatory authorities be made subject to the approval of the Senate. This will curtail the undue influence of the President over the removal of members of the regulatory authorities, ensure their independence and enhance the transparency of the industry.

c. U N B U N D L I N G O F T H E N N P C / DIVESTMENT OF SHARES OF NNPC LTD

The major shortfall of the PIB in this regard is without a definite timeline. The PIB fails to state the time period within which the assets and liabilities of NNPC would be transferred to NNPC Ltd. This lack of certainty would potentially discourage investors in the Petroleum industry. Furthermore, the PIGB contained provisions for the divestment of shares in the National Oil company, which was then the Nigerian Petroleum Company (NPC). It provided that at least 40% of the shares in the NPC would be divested within 10 years of incorporation which this PIB fails to provide.

However, the current PIB fails to give a definite time framework within which the shares of NNPC Ltd would be available to the private investors. Although, it states that the sale and transfer of shares in NNPC Ltd shall be at a fair market value and subject to an open, transparent and competitive bidding process. It is believed that private investors will be unwilling to commit to a company which will be

majorly owned and run by Government in the long term.

d. BROAD POWERS OF THE NMDRA The powers and functions assigned to the

NMDRA under the PIB, appear to be very broad. Therefore, the NMDRA must ensure that it has the proper structure to aid efficient execution of its mandate.

CONCLUSIONThe PIB is undoubtedly a positive step in the right direction. It provides for the much-needed reforms for the Petroleum industry which has been grossly mismanaged. However, the continuing non- passage of the bill has seen Nigeria incur losses from regulatory uncertainty in the oil and gas sector. Experts estimate that the loss to the country during the first eight years that the PIB languishing in parliament is as high as $120 billion (about $15 billion annually). This is due to prospective oil sector investments being withheld or diverted to more predictable climates.

Therefore, it is recommended that the shortcomings noted above be addressed by the National Assembly in its deliberation. It is also essential that all stakeholders take advantage of this opportunity to seek clarity on the proposed changes contained in the PIB, to ensure their operations are in consonance with the expectations of the Bill.

GEP is available to ensure that your business experiences a smooth transition given our wealth and depth of experience in the legal and regulatory environment within the energy sector.

7

ANALYSIS OF THE CBN FRAMEWORK FOR FINANCING OF NATIONAL MASS METERING PROGRAMME (NMMP)

A (ii)

INTRODUCTION The Central Bank of Nigeria (CBN) recently released the Framework for Financing of National Mass Metering Programme (“The Framework”) as a modality towards addressing the financing challenges encountered by Distribution Companies (DisCos) and Meter Asset Providers (MAPs) in the closing the metering gap in the Nigerian Electricity Supply Industry (NESI). It is stated that the metering gap across the country is over 10 million, inclusive of unmetered customers and customers with meters which require replacements.

A key challenge in the NESI since privatization has been the liquidity of the sector arising from a number of factors but particularly, from the inability of the DisCos to efficiently collect revenue from the customers leading to improper energy accounting and shortfalls in achieving minimum remittance obligations. The Meter Asset Providers Regulation was released as a measure towards addressing the metering challenge but since 2018, its implementation and effectiveness has been stalled largely due to financing challenges encountered by the MAPs. Prior to this, the DisCos had been unable to ensure metering of customers as part of the performance targets under their

8

Performance Agreement due to similar challenges. Therefore, the release of the Framework signifies the start of a significant milestone in the NESI on the path to full sector efficiency. This report seeks to analyse the Framework with a view to determining prospects for its effective implementation, considering the hurdles faced by previous similar initiatives.

OBJECTIVES OF THE NMMPThe NMMP, amongst other things, aims to achieve the following:

i. Increase Nigeria's metering rate The current metering rate is significantly low

with higher rates among customers in the urban areas. Meter financing and other challenges have contributed to the low metering rate, such as refusal of customers to be metered.

ii. Elimination of arbitrary estimated billing The menace of arbitrary estimated billing for

customers without meters has been constantly decried in the NESI. The Nigerian Electricity Regulatory Commission (NERC) had issued an Order, approving the cap on estimated bills to be issued to unmetered customers, as a stop gap measure pending ful l meter ing deployment.

iii. Strengthen the local meter value chain by increasing local meter manufacturing, assembly and deployment capacity & support Nigeria's economic recovery by creating jobs in the local meter value chain

The improvement of local content engagement in the metering value chain has been a key concern of the government. Given the huge volumes of meters expected to be deployed under the NMMP, strengthening local content participation across the nascent value chain becomes imperative to deliver gains to the Nigerian economy through job creation and revenue generation.

iv. Reduction of collection losses and increasing financial flows to achieve 100% market remittance obligations of the DisCos

As had been earlier stated, the reduction of revenue collection losses and increase in financial flows is a major objective of CBN's execution of the Framework in order to attain a stable electricity market.

v. Improve network monitoring capability and availability of data for market administration and investment decision making.

The deployment of smart meters which read remotely, is key towards ensuring proper network monitoring for instances of meter bypass or energy theft. It also ensures that uniform data can be accessed by all market participants for accounting and administration. This is similar to the central, network monitoring platform proposed to be set up by Siemens under the Presidential Power Initiative.

ANALYSIS OF THE FRAMEWORKThe Framework addresses three 3 classes of persons:i. Section A: Electricity Distribution Companies ii. Section B: Local Meter Manufacturers iii. Section C: Additional Requirements

Section A: Electricity Distribution CompaniesThe eligible activities which the DisCos can engage in include the procurement and payment for installation & deployment of NERC approved meters, procurement of other metering infrastructure related production and service provision, procurement of backend metering platform and data management systems; and procurement of customer enumeration services. DisCos are however, prohibited from these activities:i. Procurement of fully assembled meters from

overseas is prohibited except meters imported by Meter Asset Providers (MAP) already in the country as at September 30, 2020 and verified by NERC.

ii. Importation of related metering infrastructure

that are currently being produced in the country is also prohibited.

Clearly, the DisCos, operating through the MAPs, are not permitted to import fully assembled meters and metering infrastructure where same are already in the country. It would appear that in arriving at the Framework, the relevant stakeholders (CBN, NERC, DisCos, MAPs, etc.) must have determined the exact number of meters which have already been imported into the country by the MAPs under the AMSLs and calculated that same would be sufficient to meet the over 10 million meters needed to close the metering gap. It is assumed that they would also have ensured that the available manufacturing/assembly plants

9

possess the meter components and infrastructure required for the NMMP. While it is understood that local content participation is to be encouraged, it must be ensured that efficiency is not sacrificed for local revenue generation. This is because it is necessary for local manufacturing capacity to be strengthened to accommodate the demands of 10 million smart meters both in terms of infrastructure and technology. The single digit interest rate of 9% for the loan term and the 5% interest rate for Covid-19 relief packages until February 2021 mirrors a significant consideration of the DisCos' long-term capacity for repayment. The moratorium on the loan provided by CBN would be for a period not exceeding 24 months and this timeframe is quite commendable for the DisCos given their current financial challenges and the need for a long tenor for loan repayment. Given the impact of Covid-19 on both the DisCos and the customers, the customers' ability to pay for the meters over an instalment period is a major factor which would determine the DisCos' ability to comply with the terms of the loan agreement. In addition, the existing payment waterfall to Banks, CBN, NBET and MO on other financial obligations would also determine the DisCos' capacity for undertaking this loan arrangement while still maintaining fair OPEX to keep the business a going concern. This in addition to the right to charge commercial interest rates exercisable by the banks in the event of default should be considered by the DisCos. The Framework states that the collateral for the loan is the ranking on the payment waterfalls of DisCos as the next line charge following the existing Nigeria Electricity Market Stabilization Facility loan. These factors need to be considered by the DisCos in the process leading to acceptance of the loan conditions.

Section B: Local Meter Manufacturers

The local companies involved in the manufacture of meters and metering infrastructure as well as the assembly of completely and/or semi knock down components into meters are to be engaged in the following eligible activities:i. Procurement of manufacturing or assembly

equipment for meters ii. Set up or expansion of manufacturing or

assembly facilities iii. Procurement of production data management

and software systems iv. Working capital

The prohibited activities for local meter

manufacturers for the loan facility will not be used to finance the importation of fully assembled meters.

The eligibility criteria are as follows:i. Technical capacity for brownfield or greenfield

companies in line with requirements of regulatory agencies. Greenfield companies must present bankable business plans acceptable to the banks.

ii. Financial capacity: Eligible entities must demonstrate financial capacity to repay the loan through a sufficient debt service current ratio (DSCR).

iii. Loca l conten t : E l ig ib le component manufacturers are Nigerian-owned entities or consortiums involving a minimum of 70% local ownership.

iv. Job creation focus: Eligible manufacturers must demonstrate commitment to employing local talent with a detailed vocational and technical training plan.

Similar terms relating to interest rates, moratorium, and tenor are applicable. There are also requirements regarding working capital, required documentation and application procedure.

CONCLUSION The Framework for the Financing of National Mass Metering Programme is a welcome development and has been long overdue for the NESI. In order to ensure that the gains of the now suspended Service Reflective Tariff scheme are built upon, undertaking a national mass metering programme is suggested to likely be the most viable mechanism for metering in the NESI due to the timeframe prior to re-commencement of the Service Reflective Tariff and the need for government intervention. This is the case because of the financial challenges encountered by the DisCos, MAPs and their financial partners in undertaking the metering of customers, as stated above. The fine points of the Framework have been discussed above, highlighting the benefits of the Framework to relevant stakeholders and the areas where clarification is required with regard to the capacity of MAPs and local meter manufacturers to fund the mass metering programme. It is believed that once these are addressed and the DisCos take all factors into consideration, the NMMP is expected to enjoy success as well as the NESI in general.

10

B. INDUSTRY RISK REVIEW SNAPSHOT

11

C. INDUSTRY HIGHLIGHTS AND GLOBAL TRENDS

NIGERIA

Oil and Gas

£ National Assembly moves PIB deliberations to 2021 – Minister

£ Oil prices rebound 2% on Trump's health improvement, Norway strike escalation

£ San Leon Energy extends investment window for Oza marginal oil field

£ PIB outlines functions of new agencies to replace NNPC

£ PIB 2020 proposes establishment of midstream gas infrastructure fund

£ Shell awards Bayelsa gas pipeline contract to indigenous firm

£ NLNG boss says Nigeria's core challenge in gas sector is execution

£ FG to bar vessels without licences from operating in Nigerian waters

£ Total targets downhole equipment for OML 130£ Dangote Executive calls on FG to enhance gas

policy for improved economic development£ NCDMB's local content fund is Nigeria's energy

bank in the making£ Egina becoming one of Nigeria's premier crude

oil grades

Power£ World Bank's Nigeria power sector loan raises

energy costs as economic crisis bites£ Mojec International Limited- Meter import

waiver puts local manufacturers at risk£ Nigeria's power generation hits 4,312MW£ FG pays N1.5tn as electricity subsidy in 4 years£ Discos comply with NERC as they begin 14-day

tariff hike suspension£ Schneider Electric unveils new offer for

uninterrupted power supply£ NDPHC set to deliver more electricity to Lagos,

Ogun state industries£ NNPC exploring partnerships to improve power

distribution in Nigeria

Alternative Energy£ Eos expands battery deployments to mini grids

in Nigeria£ Lagos market traders lament as renewable

energy project rots away£ NXT Grid gets funding from Nigerian impact

investor All On for mini-grid development£ IRENA- Renewable energies enabled the

creation of 500,000 jobs in 2019 £ Innoson- Nigeria ready for electric vehicles

£ FG to scale up mini-grids, plans 30% of electricity supply from renewables by 2030

£ FG sinks $5.8bn in Mambilla hydropower project

£ Nigerian solar firm, others receive $2.6m USAID grant to power rural clinics in Africa

Environment£ Earthplus collaborates with Dutch Foreign

Affairs Ministry to host virtual Environment Dialogue

£ Nigeria moves to develop long-term low emissions plan to curb climate change

£ Govt to support Cross River in environmental restoration, says Minister

£ Alleged environmental degradation: ECOWAS court fixes Oct. 27 for $37bn damages suit

£ Environmentalists want national trees protected

GLOBAL TRENDS

Oil and Gas£ Oil price extends losses after Trump tests

positive for coronavirus£ Sahara Energy boosts LPG supply in Ivory

Coast with $450m investment£ SA's Renergen signs LNG supply deal with

Logico£ VW pushes for incentives to join Egypt's

autogas plan£ German investors target investments in

Mozambique's LNG, gas projects£ Equatorial Guinea & Russia break ground on

geological mapping project in Río Muni£ South Sudanese govt looking to build four oil

refineries£ Kenya's fuel prices rise after KRA revises tax£ LyondellBasell and Sasol form integrated

polyethylene JV in the United States

Power£ WAE and Thialis sign pact for the construction

of a 300MW power plant in Senegal£ Mozambique's EDM negotiating more power

from Cahora Bassa£ Siemens technicians sent after tough

negotiations to end power cuts in Libya£ Malawi Govt seeks affordable and reliable

energy by relying on private investors£ Cameroon's ENEO targets $295m in

cumulative net profit in 5yrs£ Siemens Energy helps Togo meet close to 40%

of electricity demand

£ Senelec connects the KMS 3 drinking water plant to Senegal's electricity grid

Alternative Energy£ WoodMac- Global energy storage capacity to

grow at CAGR of 31% to 2030 £ Global wind energy market projected to exceed

$160bn by 2026£ UpOwa secures �3m in funding to develop its

solar energy offer in Cameroon£ Netherlands' FMO invests $5m in Husk Power

Systems for Africa mini-grids expansion£ Mozambique to build three new 120MWp solar

power plants£ Egypt calls for tenders for the operation of the

Gabel El-Zeit wind farm£ Elecnor denies withdrawing from the

Boulenouar wind farm project in Mauritania£ Mac Services BDS to train 12,000 young people

on solar energy jobs in Congo

Ivie EhanmoPartnerivie@geplaw.com

Akinola OgunsakinAssociateakin.ogunsakin@geplaw.com

DianaAbasi OkopAssociatedianaabasi@geplaw.com

Fola FamuyiwaAssociatefola.famuyiwa@geplaw.com