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Original Articles

Impact of the Land Use Act on Petroleum Operations in Nigeria

Pages 291-300 | Published online: 08 Jun 2015

  • Act No. 6, Laws of the Federal Republic of Nigeria 1978.
  • Ibid, s. 1.
  • Ibid, s. 49.
  • Ibid, s. 5(i).
  • Ibid, s. 6.
  • S. 2—see the 28th item in the section. See also, Shell-BP v. F.B.I.R. 1976 (2) FPR.C.R. 39 for judicial pronouncement on this provision.
  • These are companies like Shell Petroleum Development Company of Nigeria. Gulf Oil Company (Nigeria) Limited, Mobil Producing Nigeria, Nigeria Agip Oil Company, Agip Energy and Natural Resources Limited, Nigus Petroleum, Ashland Oil, Elf Nigeria Services Limited and Dubri Oil Company Limited.
  • See Dr. V. Achimu, The Land Use Act and Petroleum Operations in Nigeria. Paper presented at the National Workshop on Petroleum Law, University of Lagos, 1984.
  • Ibid.
  • A. Nnamani, JSC “The Land Use Act—11 Years After” (1989) 2 GRBPL, No. 6, pp. 31–39 at p. 32.
  • Petroleum Act 1969 s. 2.
  • See G. Etikerentse, Nigerian Petroleum Law, (Macmillan, 1985) p. 29.
  • Para. 3, Schedule 1, Petroleum Act 1969.
  • Para. 6, Schedule 1, Petroleum Act 1969. Note however that before the enactment of the Act, there were some OPLs given for seven years for continental shelf areas. Grants for territorial waters and land areas were for five years.
  • Para 10, Schedule 1.
  • E.g. Para 13(1), Schedule 1.
  • Cap. 120, Laws of the Federation of Nigeria and Lagos 1958.
  • Para. 1, Schedule 4. For a comment on the Duration of OMLs in Nigeria, see Momodu Kassim-Momodu, “Duration of Oil Mining Leases in Nigeria”, (1988) 6 J.E.R.L., 103–104.
  • Some of the state authorities with the delegated authority of The Minister of Petroleum Resources in this regard are: The Ministry of Lands and Surveys in Bendel State, and the local government authority in both Imo and Rivers States. For private land (i.e. land which is not state land or native land within the meaning of the Land and Native Rights Act 1958) to which there is no apparent bar to occupation, the lessee is free to occupy the same having paid adequate compensation on the condition that written permission of the relevant State authority has been obtained.
  • See also para. 36, Schedule 1 Petroleum Act, 1969.
  • See, G. Etikerentse, op. cit. pp. 54–55.
  • 28(1).
  • S. 28(2)(c) and s. 28(3)(b). See also s. 28(4) where the Governor is obligated to revoke a right of occupancy in the event of the issue of a notice by or on behalf of the President of Nigeria if such notice declares such land to be required by the government for public purposes. This provision could be invoked in case of land required for petroleum operation by a Government oil producing company or by a government/private joint venture.
  • The Petroleum Act 1969 repealed and replaced the Mineral Oils Act Cap 120. See s. 13, and Schedule 3, Petroleum Act 1969.
  • See s. 34(2) of the Act. See also Savannah Bank Ltd v. Ajilo andAnor (1989) 1 NWLR Part 97, p. 305 where the Supreme Court interpreted the provisions of the Act as a whole particularly sections 1, 2, 9, 15, 22, 26, 34, 36, 39, 41 and 50.
  • See also G. Etikerentse pp. 57–58.
  • S. 34(5) of the Act. In Savannah Bank Ltd v. Ajilo & Anor (1989) 1 NWLR Part 97, p. 305, the Supreme Court expressed the opinion that section 34(5) against the persuasive nature of Section 1 of the Act dealt with the amount of land which a previous holder of undeveloped land could still hold and the amount of land a holder of several portions of land in part of an urban area could still hold.
  • S. 6(1)(a). Note however that s. 6(3)(d) of the Act removes the local government jurisdiction from land which is the subject of any laws relating to mineral oils.
  • S. 36(2).
  • (1987) 4 NWLR, part 031; (1987) 2 N.S.C.C., 1167.
  • Regulation 17(1)(c)(ii).
  • E.g. Bendel State and Rivers State in respect of some land required by producing companies for staff housing and offices. These are purposes connected with petroleum operations.
  • See the Federal Ministry of Petroleum Resources Guidelines for Compensation in Petroleum Producing Areas. In Bendel State, there are also the State Lands (Fees) (Amendment) Regulations 1990 whose Schedule B provides that 10 per cent, of the total compensation to communities and individuals shall be paid to the state.
  • S. 34 and 36(1). See also Peter Pav Dzungwe v. Gbishe and Anor (1985) 2 NWLR Part 8 at 541.
  • See text above, notes 29, 30.
  • Part V of the Act, especially s. 28 and 29.

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