File #2350: "2018_Book_ExtractivesIndustryLawInAfrica.pdf"
Testo
1|Dedication|5
1|Preface|6
1|Acknowledgements|8
1|Contents|9
1|List of Abbreviations|13
1|Part I: Introductory Context and Principles|16
2|Chapter 1: Introduction|17
3|1.1 Background|17
3|1.2 The African Extractives Industry: Legal Context and Overview|19
3|1.3 Aim, Scope and Structure of the Book|25
3|1.4 Structure|26
3|1.5 Conclusion|28
3|References|28
2|Chapter 2: Nature and Scope of the African Extractives Industry|32
3|2.1 Introduction|32
3|2.2 Petroleum|33
4|2.2.1 History of the Petroleum Industry|34
4|2.2.2 Importance of Oil and Gas to African Economies|37
3|2.3 Key Stages in Oil and Gas Development|39
4|2.3.1 Upstream|40
5|2.3.1.1 Exploration|40
5|2.3.1.2 Oil Prospecting|40
5|2.3.1.3 Drilling and Production|41
5|2.3.1.4 Decommissioning|41
4|2.3.2 Midstream|42
5|2.3.2.1 Storage|42
5|2.3.2.2 Transportation|43
4|2.3.3 Downstream|44
5|2.3.3.1 Refining|44
5|2.3.3.2 Marketing and Retailing|45
3|2.4 The Solid Mineral Sector|45
4|2.4.1 Meaning, Nature and Scope of Solid Minerals|45
4|2.4.2 History and Overview of Solid Minerals Development in Africa|49
5|2.4.2.1 Gold|50
5|2.4.2.2 Diamond|50
5|2.4.2.3 Copper|51
5|2.4.2.4 Cobalt|52
5|2.4.2.5 Platinum Group Metals (PGM)|52
5|2.4.2.6 Soda Ash|52
5|2.4.2.7 Iron Ore|53
5|2.4.2.8 Coal|53
4|2.4.3 Stages of Mineral Exploration and Development|56
5|2.4.3.1 Prospecting and Exploration|56
5|2.4.3.2 Discovery and Development|58
5|2.4.3.3 Operation and Production|58
5|2.4.3.4 Closure and Decommissioning|59
5|2.4.3.5 Post Closure Monitoring and Reclamation|60
3|2.5 The Need for Dynamic Legal Innovation in the Extractives Industry|61
3|2.6 Conclusion|63
3|References|63
2|Chapter 3: Extractive Sector Infrastructure|68
3|3.1 Introduction|68
3|3.2 Physical Infrastructure|71
4|3.2.1 Pipelines|74
5|3.2.1.1 Types of Pipelines|75
5|3.2.1.2 Flow Process and Systems|78
5|3.2.1.3 Regulation of Pipelines|79
5|3.2.1.4 Pipeline Operating and Transportation Agreements|85
3|3.3 Associated Infrastructure|89
3|3.4 Conclusion|93
3|References|93
1|Part II: Legal Theories, Contracts and Fiscal Regimes on Extractives Investments in Africa|97
2|Chapter 4: Ownership and Control of Extractive Resources|98
3|4.1 Introduction|98
3|4.2 The Elusive Ontology of Resource Ownership|99
4|4.2.1 Ownership in Dominial Jurisdictions|100
4|4.2.2 Ownership in Non-Dominial Jurisdictions|102
3|4.3 Theories of Resource Ownership and Control|105
4|4.3.1 The Ad Ceolum Doctrine|105
4|4.3.2 Non-Ownership Theory|109
4|4.3.3 The Rule of Capture|111
4|4.3.4 Correlative Rights or Qualified Ownership Theory|113
4|4.3.5 Ownership of Strata Theory|114
4|4.3.6 Servitude Theory (Profit à Prendre)|114
3|4.4 Conclusion|116
3|References|117
2|Chapter 5: Sources of Extractive Industry Law|119
3|5.1 Introduction|119
3|5.2 Sources of Extractive Industry Law|120
4|5.2.1 International Law on Resource Extraction|120
5|5.2.1.1 International Conventions/Treaties|121
5|5.2.1.2 Customary International Law|126
5|5.2.1.3 General Principles of Law|127
5|5.2.1.4 Judicial Decisions and Teaching of Highly Qualified Publicists|132
5|5.2.1.5 Other Sources of International Law|133
4|5.2.2 Domestic Statutes and Legislation|138
5|5.2.2.1 The Constitution|139
5|5.2.2.2 Domestic Legislation|139
5|5.2.2.3 Case Law|145
3|5.3 Conclusion|149
3|References|149
2|Chapter 6: Regulatory Institutions|155
3|6.1 Introduction|155
3|6.2 Petroleum Sector Institutions|157
4|6.2.1 The Ministry of Petroleum Resources|157
4|6.2.2 The National Oil Company|158
4|6.2.3 Secondary Institutions|161
4|6.2.4 Joint Development Authorities (JDAs)|164
4|6.2.5 Department or Ministry of Environment (“MOE”)|165
3|6.3 Regulatory Institutions for the Solid Minerals Sector|166
4|6.3.1 Ministry for Solid Minerals Development|167
4|6.3.2 National Mining Corporations|169
4|6.3.3 Secondary Institutions|172
3|6.4 Conclusion|173
3|References|175
2|Chapter 7: Legal Rights and Interests in Resource Extraction|179
3|7.1 Introduction|179
3|7.2 Types of Legal Interests in Extractive Resources|180
4|7.2.1 Freehold or Fee Interest|180
4|7.2.2 Leasehold Interest|181
4|7.2.3 Mineral Interest|182
4|7.2.4 Surface Interest|183
4|7.2.5 Royalty Interests|184
3|7.3 Conducting Petroleum Operations: The Licensing Regime|186
4|7.3.1 The Oil Exploration License (“OEL”) or Reconnaissance License|187
4|7.3.2 The Oil Prospecting License (“OPL”)|188
4|7.3.3 The Oil Mining Lease (“OML”)|189
3|7.4 The Licensing Regime for Solid Minerals|190
4|7.4.1 Technical Cooperation Permit|190
4|7.4.2 Reconnaissance or Prospecting Permit|191
4|7.4.3 Exploration Licence|192
4|7.4.4 Mining Lease|194
4|7.4.5 Small Scale Mining Lease|194
4|7.4.6 Quarry Lease|195
4|7.4.7 Water Use Permit|196
3|7.5 Conclusion|198
3|References|198
2|Chapter 8: Contractual and Fiscal Arrangements in the Extractive Industry|200
3|8.1 Introduction|200
3|8.2 Fiscal Arrangements in the Extractive Sector|201
4|8.2.1 Concessions|209
5|8.2.1.1 Traditional Concession|209
5|8.2.1.2 Modern Concessions|211
4|8.2.2 Contractual Regime|214
5|8.2.2.1 Production Sharing Contract (PSC)|214
5|8.2.2.2 Joint Venture Contracts (JVCs)|220
5|8.2.2.3 Joint Operating Agreement|221
5|8.2.2.4 Service Agreement|222
5|8.2.2.5 Assignment and Participation Agreements|224
5|8.2.2.6 Oil Sale Agreement|230
5|8.2.2.7 Mining Development Agreement (MDA)|232
5|8.2.2.8 Impact and Benefit Agreements (IBAs)|234
3|8.3 Conclusion|237
3|References|237
2|Chapter 9: Local Content and Product Mandating Requirements|241
3|9.1 Introduction|241
3|9.2 Meaning, Nature and Scope of LCRs|242
3|9.3 Drivers of LCRs in African Countries|248
3|9.4 Approaches to LCR Implementation in Africa|251
4|9.4.1 The Definition of “Local”|251
4|9.4.2 Local Content Threshold|262
4|9.4.3 Role of the State|264
4|9.4.4 Source of the Obligation|265
4|9.4.5 Monitoring and Institutional Coordination|266
3|9.5 Mitigating Legal Risks Relating to LCRs: The Need for a Collaborative Approach|268
4|9.5.1 Establish Clear and Comprehensive Local Content Laws|269
4|9.5.2 Establish Collaborative Focal Institution on Local Content|270
4|9.5.3 Adopt Collaborative Contract Terms on LCRs|270
4|9.5.4 Measure and Communicate Performance|271
3|9.6 Conclusion|271
3|References|272
1|Part III: Legal and Business Risks in African Extractive Investments|275
2|Chapter 10: Environmental Impacts and Risks of Extractive Operations|276
3|10.1 Introduction|276
3|10.2 What Is the Environment?|279
3|10.3 Sources of Environmental Pollution in the Extractives Industry|281
4|10.3.1 Mining Pollution|282
5|10.3.1.1 Surface Destruction and Soil Contamination|282
5|10.3.1.2 Discharge or Dumping of Mine Wastes|284
5|10.3.1.3 Acid Mine Drainage|285
5|10.3.1.4 Noise Pollution and Vibration|286
4|10.3.2 Oil Pollution|287
5|10.3.2.1 Oil Spillage|287
5|10.3.2.2 Environmental Impacts of Oil Spills|288
5|10.3.2.3 Loss of Business Profits and Subsistence Rights|289
5|10.3.2.4 Forced Displacements and Loss of Property|290
5|10.3.2.5 Health Risks|291
5|10.3.2.6 Loss of Life and Wrongful Deaths|292
5|10.3.2.7 International Liability Issues|292
5|10.3.2.8 Clean-Up Obligations and Costs|293
4|10.3.3 Gas Related Pollution: Gas Flaring|293
4|10.3.4 Effluent and Waste Discharges|295
3|10.4 Laws and Institutions for Environmental Protection|297
4|10.4.1 International Law|297
5|10.4.1.1 The United Nations Convention on the Law of the Sea (“UNCLOS”)|298
5|10.4.1.2 The International Convention for the Prevention of Pollution from Ships 1973/78 (“MARPOL”)|301
5|10.4.1.3 Protocols to the MARPOL Convention|302
5|10.4.1.4 The 1979 Geneva Convention on Long-Range Transboundary Air Pollution (the “LRTAP”)|303
5|10.4.1.5 The Stockholm Convention on Persistent Organic Pollutants (the “POP Convention”)|304
5|10.4.1.6 The United Nations Framework Convention on Climate Change (“UNFCCC”)|305
5|10.4.1.7 The West and Central Africa Regional Framework Agreement on Air Pollution (the “Abidjan Agreement of 2009”)|308
4|10.4.2 Domestic Environmental Law|310
5|10.4.2.1 Primary Environmental Legislation|310
5|10.4.2.2 Secondary Legislation and Guidelines|314
5|10.4.2.3 Environmental Impact Assessment|315
3|10.5 Environmental Institutions|318
4|10.5.1 Secondary Institutions|319
5|10.5.1.1 Department or Ministry of the Environment (“MOE”)|319
5|10.5.1.2 Environment and Sustainable Development Agencies and Commissions|320
3|10.6 Conclusion|322
3|References|323
2|Chapter 11: Business, Human Rights and Corruption Risks|330
3|11.1 Introduction|330
3|11.2 Distinctive Legal Risks in African Markets|331
4|11.2.1 Different Natural Resource Control and Ownership Regimes in African Countries|332
4|11.2.2 Effects of Regional Trade Harmonization Regimes|335
4|11.2.3 Diverse Network of Applicable Laws and Regulations|336
4|11.2.4 Increasing Local Content Requirements|337
4|11.2.5 Business and Human Rights Risks|338
4|11.2.6 Corruption Risks|345
4|11.2.7 Lopsided or Unfair Contractual Provisions|350
3|11.3 Mitigating Legal Risks Through Extensive Due Diligence|350
4|11.3.1 Survey and Review of Relevant Laws and Regulation|351
4|11.3.2 Careful Negotiation|352
4|11.3.3 Neutral Dispute Resolution Mechanisms|354
4|11.3.4 International Insurance Coverage|355
3|11.4 Conclusion|356
3|References|357
1|Preface|6
1|Acknowledgements|8
1|Contents|9
1|List of Abbreviations|13
1|Part I: Introductory Context and Principles|16
2|Chapter 1: Introduction|17
3|1.1 Background|17
3|1.2 The African Extractives Industry: Legal Context and Overview|19
3|1.3 Aim, Scope and Structure of the Book|25
3|1.4 Structure|26
3|1.5 Conclusion|28
3|References|28
2|Chapter 2: Nature and Scope of the African Extractives Industry|32
3|2.1 Introduction|32
3|2.2 Petroleum|33
4|2.2.1 History of the Petroleum Industry|34
4|2.2.2 Importance of Oil and Gas to African Economies|37
3|2.3 Key Stages in Oil and Gas Development|39
4|2.3.1 Upstream|40
5|2.3.1.1 Exploration|40
5|2.3.1.2 Oil Prospecting|40
5|2.3.1.3 Drilling and Production|41
5|2.3.1.4 Decommissioning|41
4|2.3.2 Midstream|42
5|2.3.2.1 Storage|42
5|2.3.2.2 Transportation|43
4|2.3.3 Downstream|44
5|2.3.3.1 Refining|44
5|2.3.3.2 Marketing and Retailing|45
3|2.4 The Solid Mineral Sector|45
4|2.4.1 Meaning, Nature and Scope of Solid Minerals|45
4|2.4.2 History and Overview of Solid Minerals Development in Africa|49
5|2.4.2.1 Gold|50
5|2.4.2.2 Diamond|50
5|2.4.2.3 Copper|51
5|2.4.2.4 Cobalt|52
5|2.4.2.5 Platinum Group Metals (PGM)|52
5|2.4.2.6 Soda Ash|52
5|2.4.2.7 Iron Ore|53
5|2.4.2.8 Coal|53
4|2.4.3 Stages of Mineral Exploration and Development|56
5|2.4.3.1 Prospecting and Exploration|56
5|2.4.3.2 Discovery and Development|58
5|2.4.3.3 Operation and Production|58
5|2.4.3.4 Closure and Decommissioning|59
5|2.4.3.5 Post Closure Monitoring and Reclamation|60
3|2.5 The Need for Dynamic Legal Innovation in the Extractives Industry|61
3|2.6 Conclusion|63
3|References|63
2|Chapter 3: Extractive Sector Infrastructure|68
3|3.1 Introduction|68
3|3.2 Physical Infrastructure|71
4|3.2.1 Pipelines|74
5|3.2.1.1 Types of Pipelines|75
5|3.2.1.2 Flow Process and Systems|78
5|3.2.1.3 Regulation of Pipelines|79
5|3.2.1.4 Pipeline Operating and Transportation Agreements|85
3|3.3 Associated Infrastructure|89
3|3.4 Conclusion|93
3|References|93
1|Part II: Legal Theories, Contracts and Fiscal Regimes on Extractives Investments in Africa|97
2|Chapter 4: Ownership and Control of Extractive Resources|98
3|4.1 Introduction|98
3|4.2 The Elusive Ontology of Resource Ownership|99
4|4.2.1 Ownership in Dominial Jurisdictions|100
4|4.2.2 Ownership in Non-Dominial Jurisdictions|102
3|4.3 Theories of Resource Ownership and Control|105
4|4.3.1 The Ad Ceolum Doctrine|105
4|4.3.2 Non-Ownership Theory|109
4|4.3.3 The Rule of Capture|111
4|4.3.4 Correlative Rights or Qualified Ownership Theory|113
4|4.3.5 Ownership of Strata Theory|114
4|4.3.6 Servitude Theory (Profit à Prendre)|114
3|4.4 Conclusion|116
3|References|117
2|Chapter 5: Sources of Extractive Industry Law|119
3|5.1 Introduction|119
3|5.2 Sources of Extractive Industry Law|120
4|5.2.1 International Law on Resource Extraction|120
5|5.2.1.1 International Conventions/Treaties|121
5|5.2.1.2 Customary International Law|126
5|5.2.1.3 General Principles of Law|127
5|5.2.1.4 Judicial Decisions and Teaching of Highly Qualified Publicists|132
5|5.2.1.5 Other Sources of International Law|133
4|5.2.2 Domestic Statutes and Legislation|138
5|5.2.2.1 The Constitution|139
5|5.2.2.2 Domestic Legislation|139
5|5.2.2.3 Case Law|145
3|5.3 Conclusion|149
3|References|149
2|Chapter 6: Regulatory Institutions|155
3|6.1 Introduction|155
3|6.2 Petroleum Sector Institutions|157
4|6.2.1 The Ministry of Petroleum Resources|157
4|6.2.2 The National Oil Company|158
4|6.2.3 Secondary Institutions|161
4|6.2.4 Joint Development Authorities (JDAs)|164
4|6.2.5 Department or Ministry of Environment (“MOE”)|165
3|6.3 Regulatory Institutions for the Solid Minerals Sector|166
4|6.3.1 Ministry for Solid Minerals Development|167
4|6.3.2 National Mining Corporations|169
4|6.3.3 Secondary Institutions|172
3|6.4 Conclusion|173
3|References|175
2|Chapter 7: Legal Rights and Interests in Resource Extraction|179
3|7.1 Introduction|179
3|7.2 Types of Legal Interests in Extractive Resources|180
4|7.2.1 Freehold or Fee Interest|180
4|7.2.2 Leasehold Interest|181
4|7.2.3 Mineral Interest|182
4|7.2.4 Surface Interest|183
4|7.2.5 Royalty Interests|184
3|7.3 Conducting Petroleum Operations: The Licensing Regime|186
4|7.3.1 The Oil Exploration License (“OEL”) or Reconnaissance License|187
4|7.3.2 The Oil Prospecting License (“OPL”)|188
4|7.3.3 The Oil Mining Lease (“OML”)|189
3|7.4 The Licensing Regime for Solid Minerals|190
4|7.4.1 Technical Cooperation Permit|190
4|7.4.2 Reconnaissance or Prospecting Permit|191
4|7.4.3 Exploration Licence|192
4|7.4.4 Mining Lease|194
4|7.4.5 Small Scale Mining Lease|194
4|7.4.6 Quarry Lease|195
4|7.4.7 Water Use Permit|196
3|7.5 Conclusion|198
3|References|198
2|Chapter 8: Contractual and Fiscal Arrangements in the Extractive Industry|200
3|8.1 Introduction|200
3|8.2 Fiscal Arrangements in the Extractive Sector|201
4|8.2.1 Concessions|209
5|8.2.1.1 Traditional Concession|209
5|8.2.1.2 Modern Concessions|211
4|8.2.2 Contractual Regime|214
5|8.2.2.1 Production Sharing Contract (PSC)|214
5|8.2.2.2 Joint Venture Contracts (JVCs)|220
5|8.2.2.3 Joint Operating Agreement|221
5|8.2.2.4 Service Agreement|222
5|8.2.2.5 Assignment and Participation Agreements|224
5|8.2.2.6 Oil Sale Agreement|230
5|8.2.2.7 Mining Development Agreement (MDA)|232
5|8.2.2.8 Impact and Benefit Agreements (IBAs)|234
3|8.3 Conclusion|237
3|References|237
2|Chapter 9: Local Content and Product Mandating Requirements|241
3|9.1 Introduction|241
3|9.2 Meaning, Nature and Scope of LCRs|242
3|9.3 Drivers of LCRs in African Countries|248
3|9.4 Approaches to LCR Implementation in Africa|251
4|9.4.1 The Definition of “Local”|251
4|9.4.2 Local Content Threshold|262
4|9.4.3 Role of the State|264
4|9.4.4 Source of the Obligation|265
4|9.4.5 Monitoring and Institutional Coordination|266
3|9.5 Mitigating Legal Risks Relating to LCRs: The Need for a Collaborative Approach|268
4|9.5.1 Establish Clear and Comprehensive Local Content Laws|269
4|9.5.2 Establish Collaborative Focal Institution on Local Content|270
4|9.5.3 Adopt Collaborative Contract Terms on LCRs|270
4|9.5.4 Measure and Communicate Performance|271
3|9.6 Conclusion|271
3|References|272
1|Part III: Legal and Business Risks in African Extractive Investments|275
2|Chapter 10: Environmental Impacts and Risks of Extractive Operations|276
3|10.1 Introduction|276
3|10.2 What Is the Environment?|279
3|10.3 Sources of Environmental Pollution in the Extractives Industry|281
4|10.3.1 Mining Pollution|282
5|10.3.1.1 Surface Destruction and Soil Contamination|282
5|10.3.1.2 Discharge or Dumping of Mine Wastes|284
5|10.3.1.3 Acid Mine Drainage|285
5|10.3.1.4 Noise Pollution and Vibration|286
4|10.3.2 Oil Pollution|287
5|10.3.2.1 Oil Spillage|287
5|10.3.2.2 Environmental Impacts of Oil Spills|288
5|10.3.2.3 Loss of Business Profits and Subsistence Rights|289
5|10.3.2.4 Forced Displacements and Loss of Property|290
5|10.3.2.5 Health Risks|291
5|10.3.2.6 Loss of Life and Wrongful Deaths|292
5|10.3.2.7 International Liability Issues|292
5|10.3.2.8 Clean-Up Obligations and Costs|293
4|10.3.3 Gas Related Pollution: Gas Flaring|293
4|10.3.4 Effluent and Waste Discharges|295
3|10.4 Laws and Institutions for Environmental Protection|297
4|10.4.1 International Law|297
5|10.4.1.1 The United Nations Convention on the Law of the Sea (“UNCLOS”)|298
5|10.4.1.2 The International Convention for the Prevention of Pollution from Ships 1973/78 (“MARPOL”)|301
5|10.4.1.3 Protocols to the MARPOL Convention|302
5|10.4.1.4 The 1979 Geneva Convention on Long-Range Transboundary Air Pollution (the “LRTAP”)|303
5|10.4.1.5 The Stockholm Convention on Persistent Organic Pollutants (the “POP Convention”)|304
5|10.4.1.6 The United Nations Framework Convention on Climate Change (“UNFCCC”)|305
5|10.4.1.7 The West and Central Africa Regional Framework Agreement on Air Pollution (the “Abidjan Agreement of 2009”)|308
4|10.4.2 Domestic Environmental Law|310
5|10.4.2.1 Primary Environmental Legislation|310
5|10.4.2.2 Secondary Legislation and Guidelines|314
5|10.4.2.3 Environmental Impact Assessment|315
3|10.5 Environmental Institutions|318
4|10.5.1 Secondary Institutions|319
5|10.5.1.1 Department or Ministry of the Environment (“MOE”)|319
5|10.5.1.2 Environment and Sustainable Development Agencies and Commissions|320
3|10.6 Conclusion|322
3|References|323
2|Chapter 11: Business, Human Rights and Corruption Risks|330
3|11.1 Introduction|330
3|11.2 Distinctive Legal Risks in African Markets|331
4|11.2.1 Different Natural Resource Control and Ownership Regimes in African Countries|332
4|11.2.2 Effects of Regional Trade Harmonization Regimes|335
4|11.2.3 Diverse Network of Applicable Laws and Regulations|336
4|11.2.4 Increasing Local Content Requirements|337
4|11.2.5 Business and Human Rights Risks|338
4|11.2.6 Corruption Risks|345
4|11.2.7 Lopsided or Unfair Contractual Provisions|350
3|11.3 Mitigating Legal Risks Through Extensive Due Diligence|350
4|11.3.1 Survey and Review of Relevant Laws and Regulation|351
4|11.3.2 Careful Negotiation|352
4|11.3.3 Neutral Dispute Resolution Mechanisms|354
4|11.3.4 International Insurance Coverage|355
3|11.4 Conclusion|356
3|References|357