Abstract
The Petroleum Industry Act (PIA) 2021, recently enacted by the Nigerian National Assembly is
an amalgam of several earlier laws and memoranda of understanding (MOU’s), with important
new updates. It embodies comprehensive management instruments for tighter governance of the
industry. Now structured into the upstream, midstream, and downstream sectors, its governance
would prove more prudent. This contribution intends to outline and discuss the upstream sector
(exploration). The main research focus is the initial activities of the intending operator for which
is the careful assessment of available geological information to support any major decisions such
as fresh acreage acquisition, firm-in, or buy-out. Prior to acreage acquisition, the prospective
operator examines the business climate by assessing the technical, socio-political, and fiscal factors
as well as the potential upsides. Thus the design of the study encompasses the assessment of easily
available geological information all the way to the more intricate subsurface data acquisition and
the formulation of the field development plan as stipulated by the relevant provisions of PIA. Among the major findings of this study is that a successful exploration phase is firmly predicated on seismic acquisition with safety goal zero target and flawless drilling operations. An additional determinant of a successful exploration phase, which PIA has granted a maximum of six-year enterprise by an operator, is the strict application of a set of PIA provisions that may be termed nontechnical essentials, but which will guarantee a seamless exploration operation, namely community affairs, HSSE (Health, Safety, Security, and Environment), and the Nigerian Content. These are also governed by strict rules, some of them involving international protocols, as well as separate National Assembly enactments.