Books

Petrolium Law by fabianajogwu

Petroleum Law & Sustainable Development

ISBN: 978-978-939-108-0

“This book has convincingly dealt with this powerful impediment by recommending measures through which the goal of sustainable oil and gas exploration and production could be realised in Nigeria. The discussion on the need for a paradigm shift for a sustainable oil and gas exploration and production is undoubtedly an outstanding contribution to the Nigerian oil and gas industry and entire country which has often struggled with negative economic, social and environmental impacts of the petroleum industry. With more than thirty combined years of experience of legal practice and research between the authors, it is not surprising to see that this book combines theory and practice in a seamless practical way as it offers solutions that will engender sustainability.

The Learned Authors, Dr Fabian Ajogwu SAN and Dr Oscar Nliam have produced a marvellous reference book for the oil and gas industry, government and regulators, judicial officers, legal practitioners, academics, students, civil society groups, the media and all who wish to see the Nigerian oil and gas industry move in a more sustainable direction.”

– H. Odein Ajumogobia SAN, OFR, LLM (Harvard)
Formerly, Honourable Minister of State, Petroleum Resources, Nigeria Formerly, Honourable Minister of Foreign Affairs, Nigeria
Formerly, Attorney-General & Commissioner of Justice, Rivers State

It is the view that petroleum, a natural resource of value accruing to a people should be a blessing to them, but that presupposes that among other things it does not end up impairing the ability of future generations to live minimum standards of life that recognise the importance of the nexus between people, economy, environment and enterprise (described as the Es). It is a disconnect between Petroleum exploration, production and management on the one hand, and the sustainability of the three Es that has led to the coined expression – “the oil curse”. Therefore the concept of sustainable development emerged as the link between petroleum development activities on one hand and ensuring the ability of present and future generations to meet their socio economic and environmental needs on the other hand.

In the last two dacades, the concept of sustainable development has emerged strongly in national policies and international law in recognition of the fact that human development activities are the major concern of sustainability. Almost every policy document in the developed economies of the world contains sustainable development agenda. Various corporate organisations have also developed some kind of sustainable development strategy. Whether it is a government agenda on sustainable development or corporate strategy on sustainable development, common features are that human development activities are at the centre of sustainability concerns and that actions needs to be taken to ensure development that is sustainable. The Rio Declaration on Environmental and Development rightly noted that in order to achieve sustainable development and a higher quality of life for all people, states should reduce and eliminate unsustainable patterns of production and consumption.

Upstream oil and gas exploration and production are human development activities that raise major sustainability concerns particularly in the oil producing areas of Nigeria. This book examines the concept of sustainable development in relation to the Nigeria oil and gas industry as it poses considerable sustainability issues. The concept of sustainable development has been defined variously but the often most cited definition is that preferred by the Report of the Brundtland Commission that is: “development that meets the need of the present without compromising the ability of future generation is given restricted interpretation as referring to environmental protection alone. This book shows that sustainable development can be understood properly in the real sense of the words – ‘sustainable’ and ‘development’ and that it is much more than environmental protection.

This book therefore examines sustainable development as an umbrella concept that embodies various principles that could be operationalized in the Nigerian petroleum industry. The book highlights the relevance of the various principles to the petroleum industry and shows greater understanding that sustainable development is based on a set of principles that would profoundly affect national and international governance. The book presents a balanced understanding of sustainable development which is intended to protect and restore the environment without compromising the benefits of traditional development which is centered on economic and social development. In essence, upstream oil and gas development activities in Nigeria can be carried out in a sustainable manner whereby ecological carrying capacity of the environment can be maintained, economic development and social progress are promoted.

The book has eleven chapters, three apprendices and a comprehensive bibliography. It is divided into four interrelated parts. Part 1 examines generally the Nigerian oil and gas starting from the discovery of oil and gas, ownership of oil and gas in Nigeria, participants in the Nigeria oil and gas ownership. Part II analysis the concept and principles of sustainable development with special emphasis on the oil and gas industry. Part III examines the legal framework for sustainable development in the Nigeria oil and gas industry. The major factor in the assessment of the international oil and regime and the domestic oil and gas legal framework is to ascertain the extent to which they embody the various principles of sustainable development as regulatory tools and strategies. It is important to note that international oil and gas regime is not designed to deal with economic, social and environmental issues that arise from upstreams oil and gas development activities in the oil producing areas of Nigeria. Therefore Nigeria through its domestic legal framework has the responsibility of ensuring sustainable oil and gas exploration and production.

Part IV makes assessment of progress towards sustainable development in the Nigerian oil and gas industry and offers recommendations that will promote sustainable development in the industry. The recommendations are based on the following: better regulatory or legal regime that is backed by effective and efficient enforcement mechanisms, cooperation of the oil companies through the use of corporate social responsibility, clean development mechanisms and commitment to sustainable development. The book recommends that the local communities should be law abiding and play participatory roles in this journey towards sustainable oil and gas exploration and production. The input of civil society group is not left out in the recommendation.

The need for the application of the concept of sustainable development in the Nigerian upstream oil and gas industry is therefore predicated on the fact that the concept is all encompassing and seeks to promote better environmental protection, encourage economic development and promote social wellbeing. Positive impact of sustainable oil and gas exploration and production in the Nigerian oil and gas industry will have a positive multiplier effect on the larger national society: be it economic development, social progress or environmental protection.

All of these have brought depth and meaning to this book on petroleum Law and Sustainable Development. The book lays no claim to perfection, and we therefore take full responsibility for errors of omission and commission that may be found herein.

Dr Fabian Ajogwu, SAN
Dr Oscar Nliam
Victoria Island, Lagos
June 1, 2014

The importance of the environmental issues has for the last three decades at least, been central to the development of the global oil and gas industry ,as we continue to witness the clash of perspectives between protagonists for and against the further development of the world’s still vast hydrocarbon resources. The global community is certainly heavily dependent on oil and gas supplies and will remain so for the foreseeable future. Indeed modern civilization remains significantly beholden to this resource and its countless derivatives.

The exploitations of hydrocarbons unfortunately also inevitably comes with an environmental toll: Oil spills, well blowouts, fires and consequent ecological damage to land, vegetation and to aquatic life from direct pollution through oil on land, in water or from flared associated gas. This is all apart from social dislocation within host communities and the social upheavels that have been caused by the industry. The challenge therefore has been with what the anti oil and gas development lobby, vocally highlights as the untold adverse ecological, economic and social impact of oil and gas exploration and production.

This book sets out a most balanced account of this challenge from the authors perspective and conviction of a need and alternate way to integrate the development of oil and gas with best environmental practices to ensure the sustainability of both. The authors have eloquently argued the case that an appropriate focus on sustainable development is the necessary and effective measure, to address the negative issues associated with oil and gas exploration and production. This is especially so, having regard to the serious environmental problems that made the Niger Delta a hotbed of resistance to oil and gas production, drawing also on the experiences and practices of other oil and gas provinces around the world.

“Petroleum Law and Sustainable Development” thus seeks to dissect this conflict from the point of view of sustainability – from fifty years ago when oil was first discovered in Nigeria with scant attention to any environmental impact assessment, through the increasing awareness of its deterious effect on host communities lives and livelihoods especially, to the authors advocated balanced recipe of embedding best environmental management practices within the activities involved in the exploration, production and evacuation of oil and gas to prevent or minimize any and all such adverse impacts.

The concept of sustainable development has been comprehensively dealt with by the authors Dr Fabian Ajogwu SAN and Dr Oscar Nliam who have carefully and clearly distilled the principles, theories, law and practice in the Nigerian oil and gas industry. They have also linked the relevance of each concept or principle to the industry and to international law and convention, while highlighting the other important sustainable development pillars. The authors state
emphatically that these are economic development and social cohesion and progress in addition to the more familiar environmental protection issues.

Finally the authors conclude with the trend typified by international conventions and treaties on the subject of oil and gas particularly, which now seem to point toward the notion of sustainability, just as domestic courts and local; dispute settlement mechanisms provide a corollary legal framework for the settlement of oil and gas exploration and production disputes in the Nigeria.

Dr. Ajogwu and Dr Nliam must also be applauded for their insightful analysis of the Nigerian Oil and Gas Industry Content Development Act of 2010 that examined the social and economic aspects of sustainability in the Nigerian oil and gas industry. “Petroleum Law and Sustainable Development” is especially commendable for its insightful recommendation for a paradigm shift to sustainable oil and gas exploration and production in Nigeria. There is no doubt that amongst the many obstacles that constitute, in the words of William C. Clark, “a powerful impediment to moving toward more sustainable development”, is “our ignorance about how to do so”.

This book has convincingly dealt with this powerful impediment by recommending measures through which the goal of sustainable oil and gas exploration and production could be realised in Nigeria. The discussion on the need for a paradigm shift for a sustainable oil and gas exploration and production is undoubtedly an outstanding contribution to the Nigerian oil and gas industry and entire country which has often struggled with negative economic, social and environmental impacts of the petroleum industry. With more than thirty combined years of experience of legal practice and research between the authors, it is not surprising to see that this book combines theory and practice in a seamless practical way as it offers solutions that will engender sustainability.

The learned authors, Dr Fabian Ajogwu SAN and Dr Oscar Nliam have produced a marvellous reference book for the oil and gas industry, government and regulators, judicial officers, legal practioners, academics, students, civil society groups, the media and all who wish to see the Nigerian oil and gas industry move in a more sustainable direction. I must commend the authors of an excellent book and for this critical addition to the body of literature in such an area of national importance.

H. Odein Ajumogobia San, Ofr, Llm (Harvard)