The legal regime for Nigerian gas

Nigeria has abundant gas resources, with approximately 187 trillion Cubic feet (tcf) of proven gas reserve and 300,600 tcf of unproven gas reserve. As the world's seventh largest, and Africa's largest deposit of natural gas, Nigeria can be described as a gas province with some oil in it. Moreover, a nation highly endowed with such gas resources must endeavour to produce the recoverable reserves optimally for the benefit of both the current and future generation. The exploitation and marketing of petroleum (which includes gas) in Nigeria is regulated by law. These laws have been made for the proper administration of the operation of the oil mining process and the general practice in the oil industry. We are going to examine the Laws as it relates to gas from the colonial era, through the enactment of the Petroleum Act in Nigeria, and up to date. Consequently, this study examines the laws that regulate activities in the Nigerian gas sector with respect to ownership and control; exploration and production; transmission, marketing and distribution (utilization); gas flaring; price regulation; and fiscal regime. This paper considers whether in the current dispensation, these laws are appropriate for optimizing gas exploration for the benefit of the Nigerian Nation.