The legal regime for assignment of interests in Nigeria's upstream petroleum sector: a critique of Moni Pulo vs Brass Exploration, DPR's 2014 and 2021 Guidelines and the Petroleum Industry Act of 2021

Nigeria discovered oil in 1956. The Petroleum Act of 1969 that for a long time regulated the upstream petroleum sector was obsolete. This was manifest in respect of the legal regime for the transfer of upstream assets and interests. Under this regime only direct transfer of Oil Licenses or Leases were regulated. Change in control situations of Oil License or Lease holders or a merger/acquisition were not regulated. Unfortunately, Nigeria's legislative organ, like most of the developing world where there has been political instability due to military intervention, has not been able to respond swiftly to fast-paced developments in the industry. The Petroleum Industry Act has taken some 20 years from conception to passage. In that period, the Department of Petroleum Resources (DPR) that regulated the industry found creative ways to regulate the industry in light of the failure of the National Assembly. This included issuing regulations regarding transfer of interests in the upstream sector. The judiciary was not left out and at least one case came up for determination in this regard. This article argues that case law on this point and DPR's intervention through regulation are wrong in law and section 95 of the new Petroleum Industry Act has saved the situation.