Ownership of Associated and Discovered Gas in Nigeria Under the Old Joint Venture Contracts

Abstract

In Nigeria, petroleum is defined to include natural gas. The country has a legal framework that clearly vests ownership of crude oil, mined under the old joint venture contracts, in the oil-producing company that produces the crude. However, the country has, over the years, enacted some laws seeking to vest the ownership of associated and discovered gas absolutely in the country itself, while retaining laws that, in effect, vest the ownership of the same gas in the producing company. The country's efforts to recover and keep ownership of associated and discovered gas have, therefore, been rather lame and ineffective. This article considers the legal framework and points the way forward for the removal of the confusion foisted by this uncertain legal situation.