Tag: Petroleum Industry Bill (PIB)

  • Senate passed 96 bills, 72 petitions from 2015 – 2017, says Saraki

    Senate passed 96 bills, 72 petitions from 2015 – 2017, says Saraki

    President of the Senate, Dr Bukola Saraki, said the 8th Senate passed 96 Bills and 72 petitions from its inauguration in 2015 to June, 2017.

    He made this known at a special session to mark the second anniversary of the 8th Senate in Abuja on Friday.

    Saraki said that the passage of the bills and petitions by the chamber during the period eclipsed the highest ever in the history of the National Assembly.

    He said that the closest record to it was by the 5th Senate which passed 65 bills and six petitions within the same period.

    “When we started, I knew that the 8th Senate was going to be significantly different and effective.

    “I saw across the aisle, a passionate, energetic, and a set of leaders made of sterner stuff with a desire to make the difference.

    “Though we inherited a legacy that created in some minds, cynicism and despondency, we were undeterred irrespective of an unending barrage of virulent attacks and unprovoked aggression.

    “The 8th Senate marched on together, erasing records and setting new ones.

    According to Saraki, the 8th Senate has led with courage and taken up more hot-button- national and legislative issues and successfully dealt with them.

    “We committed ourselves to greater openness and accountability and many doubted our capacity to do as we preach.

    “But, we have led from the frontline on the war against corruption, having passed several corruption-exposing resolutions that have saved our government billions of naira cumulatively.

    “Today, in keeping with our pledge, the National Assembly has opened its line-by-line itemed-budget to the world, first in the history of the National Assembly.”

    He congratulated the lawmakers for putting in the shift to ensure they realized the milestones.

    “Indeed, there have been many more. We have taken on the toughest Bills and challenges affecting our unity, the welfare and security of our people and the necessary platform for a greater Nigerian economy.

    “From the Nigerian Railway Bill, the Public Procurement Act Amendment, the Nigerian Ports & Harbour Bill, the National Road Funds Bill to the National Transport Commission Bill, the National Inland Waterways Bill and the Federal Roads Bill.

    “Others are the Competition and Consumer Protection Bill, the Investment & Securities Act Amendment, the Companies and Allied Matters Act Amendment, the Secure Transactions in Movable Assets Bill and the Independent Warehouse Regulatory Bill.

    “They also include the Bankruptcy & Insolvency Act (Repeal & RE-enactment) Bill, the Electronic Transactions Bill and the Nigerian Postal Commission Bill.

    “All of these and many more have been the highest compendium of economic reforms ever undertaken by any administration in the history of our country.

    “We are taking it one after the other. We are laying the foundation for a new Nigerian economy to emerge, one that is empowering the private sector,” he said.

    On the issue of opening the lawmaking process, the senate boss said that the lawmakers had not been afraid to push the boundaries of convention.

    According to him, that is why the 8th Senate can be credited to have initiated the first-ever National Assembly Joint Public Hearing on the Budget.

    He also said that the 8th Senate broke the 12-year jinx on the Petroleum Industry Bill (PIB) by passing the Petroleum Industry Governance Bill (PIGB) that would reform the oil sector.

  • PIB: Senate scraps NNPC, creates three new agencies

    PIB: Senate scraps NNPC, creates three new agencies

    At last, the Senate on Thursday passed the Petroleum Industry Bill (PIB), putting paid to the controversy that dogged the bill ford over 10 years.

    Some of the highlights of the bill is the scraping of the Nigerian National Petroleum Corporation (NNPC) and the merging of the Department of Petroleum Resources (DPR), Petroleum Products Pricing, Regulatory Agency (PPPRA) and the Petroleum Equalisation Fund (PEF) into one agency.

    To replace the NNPC are the National Petroleum Company (NPC) and Nigerian Petroleum Assets Management Company (NPAMC), to ensure efficient and effective commercial performance. The new bill also streamlined the role of the Petroleum Minister.

    According to the bill, the NPC and the NPAMC will be under the supervision of a newly created Petroleum Regulatory Commission (PRC).

    The PRC “shall be the Industry Regulator and Watchdog, responsible for licensing, monitoring, supervision of petroleum operations, enforcing laws, regulations and standards across the value chain”, the bill added.

    Under the envisaged regime, the PRC will also absorb the DPR, PPPRA and the PEF, “to ensure efficient and effective commercial performance in the petroleum sector”

    It is also geared toward creating efficient and effective governing institutions with clear and separate roles for the petroleum industry, in addition to establishing a framework for the creation of commercially oriented and profit driven petroleum entities.

    This, according to the bill, will ensure value addition and internationalization of the petroleum industry, promote transparency and accountability in the administration of petroleum resources and foster a conducive business environment for petroleum industry operations.

    Other highlights of the bill is a provision in section 26(3) where it gives the regulatory commission 10% cost of collection of revenues from other commercial agencies.

    “The Commission shall establish and maintain a fund (‘the Fund’) from which all expenditures incurred by the Commission shall be defrayed. The NPRC is also empowered by the bill to spend ten percent of what it generates for its operations”, the provision added.

    The lawmakers rejected the controversial 10% Host Fund that led to disagreements among various interests in the past, leading to long delay in the passage of the bill.

    The Senate deferred work on the Host Community Fund and fiscal aspect of the bill till later date.

    The chairman, Senate committee on Petroleum (Upstream), Senator Tayo Alasoadura, said the bill would create more jobs for Nigerians and also foster a conducive business environment for petroleum operations when signed into law.

    According to him, the bill promises immense benefits for local operations in the petroleum industry.

    Alasoadura added that with the bill, it will become illegal to employ foreigners for certain skills that can be sourced locally.

    “And even where such skills are sourced from abroad, due to unavailability locally, it would be mandatory for Nigerians to understudy such an expatriate”, he added.

    The senator further stated that the PIB will not only enhance exploitation and exploration of petroleum resources in the country, it will also increase power generation and industrial development capacity through abundant domestic gas supply.

    The committee chair also said that the law would also create profit-driven oil entities, encourage investment in the nation’s petroleum industry and tremendously increase government’s revenue.

    “Government revenue from oil industry will increase. This means more funds in the hands of government to engage in developmental activities. The downstream sector will become fully deregulated. In other words, subsidy will be totally removed”.

    The envisaged law, he continued, will also bring about a fully deregulated and liberalized downstream petroleum sector, create efficient and effective regulatory agencies and promote the development of Nigerian local content in the oil industry.

    He said, “Besides, emphasis on local content will not only be in the area of skills, but would also be applicable to material sourcing. This means more jobs for Nigerian local contractors, especially those from the oil producing regions”,

    “The PIB vests ownership and management of all petroleum resources, offshore or onshore, in the Federal Government of Nigeria, which is to manage them on behalf of all Nigerians.

    “This means that irrespective of where the oil is found, it belongs to the government of Nigeria. Of course, equity calls for special consideration for localities where the resources are mined. This is taken care of by the revenue sharing laws and other provisions of this Bill, like the Host Community Fund”.

    The lawmaker also stated that since gas is still under-focused in Nigeria and its potential as a source of energy untapped, the PIB seeks to maximize the benefits of the nation’s gas resources.

    He added that the PIB will also lead to the establishment of the Nigeria Oil and Gas Investment Pact Scheme (NOGIPS) which will ensure that components of the oil industry equipment can be manufactured locally.

    According to him, the envisaged law further makes provision for the protection of health, safety and the environment in petroleum operations.

    In his remarks, the Senate President, Dr. Bukola Saraki described the exercise as the first segment in the passage of the bill.

    The Senate, he assured, would ensure the opening up of the petroleum sector, and by extension, the economy of the country on a tripod of transparency, efficiency and profitability for both the government and players in the field.

     

  • Applying Alaibe’s recommendations for devt of Niger Delta

    Applying Alaibe’s recommendations for devt of Niger Delta

    The assurance, by the federal government, that all the oil bearing communities in the Niger Delta will enjoy equal treatment in the distribution of developmental projects is a soothing balm to the wounds of communities that have over the years suffered neglect by successive administrations in the various attempts at addressing the vexed issue of even development of the region.

    Vice President, Professor Yemi Osinbajo, reportedly gave the assurance not long ago when representatives of Gbaramatu Kingdom in Delta State paid him a courtesy visit.

    For far too long, communities in states that are derisively considered as ‘fringe members’ of the Niger Delta have suffered what can at best be described as official neglect in the distribution and siting of developmental projects, for the simple reason that they are not the ‘mainstream’ oil bearing states, and therefore do not suffer the same level of destruction of the environment and other negative consequences of oil exploration and production, like the latter.

    It is the reason Niger Delta has inadvertently come to be synonymous with states like Rivers, Bayelsa, Akwa Ibom, Delta, Cross River and Edo. It is hardly remembered that Ondo, Imo and Abia states are also in the Niger Delta. In fact, reference is sometimes made to Delta, Rivers and Bayelsa as the so-called core Niger Delta. It doesn’t help matters, either, that people in these three states see themselves, rather arrogantly, as the ‘real Niger Delta’ people, through utterances and actions.

    But thank God for the Buhari administration. Recent actions of the government suggest that we are about to witness a significant departure from what has been the usual practice of concentrating developmental efforts on some selected sections of the Niger Delta, perhaps because all the noise, threats and actual destruction of oil installations and facilities by armed militants have been coming from those sections. The all-inclusive approach of the federal government to finding lasting solutions to the problems of the entire Niger Delta, not just a few states, is undoubtedly the panacea to the restiveness that has seen the country being held hostage, with the predictability of the rising of the sun.

    The government has started on a good note by engaging stakeholders in the Niger Delta in dialogues that are meant to chart the way forward for the region. One of such activities was the recent tour of the region by the vice president, during which he held town hall meetings with people from all segments of the society. Before then, President Muhammadu Buhari had held a meeting with representatives of the region in Abuja, at which the demands of the people of the region were presented in documentary form.

    If past experience is anything to go by, it will not be surprising to see the government follow up by setting up a committee to draw up a plan of action for implementing the demands of the region, both from the president’s meeting and the vice president’s various town hall meetings. There should be no need for this. The government has a working document to serve as guide for a systematic development of the region, one that would satisfy the yearnings, demands and aspirations of all the communities in the region.

    Timi Alaibe, a former managing director of the Niger Delta Development Commission (NDDC), has been a one-man advocate for equitable distribution of resources and developmental projects in the region, irrespective of percentage of contribution to the national oil revenue, or degree of negative consequences suffered from oil exploration and production activities. For him, environmental degradation, like oil spill, does not recognize state or community boundaries. Nor is underdevelopment or unemployment concentrated in some sections of the region.

    The former presidential adviser on the Niger Delta Amnesty Programme does not lose any opportunity to speak on the issue of even development of the region wherever he finds it – at public lectures and media interviews.

    Alaibe’s ideas of what are required to ‘liberate’ the Niger Delta from the shackles of underdevelopment and poverty, quite lofty as they come, are encapsulated in the Niger Delta Development Master Plan that he personally authored. The document is a guide for the systematic and sustained development of the region, quite different from the periodic handouts that successive governments have been content to giving the people of the region.

    Though yet to be fully implemented, save for one of the pillars that deal with demobilization, rehabilitation and reintegration of former militants, the Master Plan has remained largely unused. Perhaps the document waited for the Buhari administration that is designing a new approach to solving the problems of the region, to be fully implemented.

    Is it a coincidence that the Senate has just exhumed the Petroleum Industry Bill (PIB) that had remained buried in its closets for nearly a decade, just when the federal government is trying to design new initiatives to tackle the Niger Delta problem? Perhaps it is not. The PIB and the Niger Delta Master Plan find common grounds in some areas, such as joint ownership of oil infrastructure by communities, which would make them assume full responsibility for its security. There is also the issue of involving oil bearing communities in profit sharing of oil proceeds. Both documents are on the same page on this.

    The federal government must walk its talk by ensuring even distribution of developmental projects in the entire Niger Delta region, which is in line with Alaibe’s recommendations in the Master Plan. This is what would give every community and hamlet in the region a sense of belonging. Some sections should no longer be made to feel that they are the special children that deserve to be pampered, while others pick the crumps that fall from the table.

    If the time has come for the people of the Niger Delta to feel differently (positively) about living in the area that serves as the goose that lays the golden egg, that feeling should spread everywhere.

     

    Ms Adeyeye, an environmental rights activist, lives in Akure

     

     

     

  • ‘Oil subsidy scammers nurturing vandalism, militancy, crude oil theft’

    The oil subsidy scammers, who benefited immensely from fake importation of petroleum products, are nurturing vandalism, militancy, crude oil theft and the unwarranted disruptions in the sector, to the level being witnessed, especially in the Niger Delta.

    The disclosure was made Wednesday in Port Harcourt, the Rivers State capital, by the Convener of the Second Edition of the Save Nigeria Oil and Gas Industry (SNOAGI) Roundtable, Dr. Brown Ogbeifun.

    The roundtable was organised by the African Initiative for Transparency, Accountability and Responsible Leadership (AFRITAL).

    Project SNOAGI was launched last year, as a veritable platform for bringing stakeholders together to interact, brainstorm and make prescriptions on how to improve the efficiency of the oil and gas operations, thereby assisting government in bringing sanity to the sector.

    Ogbeifun said: “Most of the motherless US Dollars, British Pounds, Euro and Naira found in wardrobes, farms and soak-away pits are definitely primary or secondary products of mismanaged oil funds, which might explain why the oil industry has witnessed gross underdevelopment.

    “The revelations emanating from the Malabu oil deal, the brazen cash withdrawals from oil money accounts to pursue non-value addition to the good of our hydrocarbon development are indeed very sad.

    “There is no doubt that there has been lack of investors’ confidence in the oil industry, as policies and laws that would have protected their investments are not seriously addressed.

    “The issues of over regulation through multiple regulatory agencies, multiple taxation, global and local oil politics have made it an intractable possibility for Nigeria to reach it’s optimum productivity.”

    The convener also stated that Nigeria was ripe enough to be self-sufficient in producing all the necessary derivatives from crude oil.

    Ogbeifun noted that compounding the parlous state of the oil and gas sector came the sabotaging of the pipelines by the militants, which he insisted almost crippled operations in the sector.

    He said: “Paradoxically, we export our crude oil and create refining capacities for other economies, at the detriment of the Nigerian state. Why must we continue to export our mineral resources in exchange for finished products in the oil and gas industry?

    “Our leaders have consistently displayed lack of political will to drive the transformation imperatives to a logical conclusion. That is why we are still talking of the Petroleum Industry Bill (PIB), 17 years after it started its journey.

    “No country treats its critical reforms the way we do. Not passing the PIB has led to losses in trillions of naira, loss of investment opportunities, inability to realise our optimum capacity utilisation and the inability to end gas flaring, which was to have ended in 2008.

    “The PIB might not be a perfect document, just as it is all over the world. All we need is an enduring dialogue process and the will of steel by government to drive the process to its logical conclusion. No matter the drawbacks, the PIB contains many sections that would have greatly enhanced the hydrocarbon potential of Nigeria.”

    The convener also stated that mediation was very effective in the resolution of knotty conflicts, while pleading that the ongoing dialogue process between top officials of the Federal Government and Niger Delta militants/leaders should be sustained.

    He noted that while government was seeking solutions to all the challenges in the Niger Delta, all parties should sheathe their swords,  show good faith and respect for one another, declaring that no meaningful development would take place in an atmosphere of chaos and anarchy.

    Ogbeifun added that the pronouncements of the Federal Government’s top officials on the setting up of modular refineries in the Niger Delta and the open confession that the crude oil and gas-rich region deserved a better deal, showed that there were still honourable men in the corridors of power in Nigeria.

     

  • NUPENG gives 21-day ultimatum to FG on worsening Economy

    NUPENG gives 21-day ultimatum to FG on worsening Economy

    The Nigerian Union of Petroleum and Natural Gas (NUPENG) say it would impose an industrial strike if the federal government fails to sort out ongoing mass sack in the oil industry in the next 21 days.

    This was contained in a communiqué presented to journalists by the National President of NUPENG, Comrade Igwe Achese, after a meeting of the union’s Central Working Committee (CWC), held in Warri, Delta state.

    The communique, which revealed that more than 3000 oil workers had lost their jobs as a result of the effect of the economic recession on the oil industry, blamed the worsening economic situation on federal government’s misplacement of the nation’s economic priorities.

    It also reprimanded FG for aggravating the crisis in the oil industry by its failure to meet its Joint Venture cash calls and called on government to fast track the passage of the Petroleum Industry Bill (PIB).

    “As I address you, Chevron has wound up its Eastern operations and their offices closed. A total of 1,500 workers were sacked without their entitlements and nobody is saying anything. As we speak, many companies have left, others are winding up.

    “ExxonMobil has asked its contract staffs to go, that it can no longer pay them.nPan Ocean, Sapiem, Grand Petroleum, Hercules Offshore, all around Warri have closed shops. About 3000 workers have already been sacked by various oil companies.

    “FG should act fast to avert further loss of jobs. There is too much redundancy in the oil industry. NUPENG will take all necessary action to drive home its demands if government fails to act in 21 days. We are 100% in support in the fight against anti-corruption, but there must be respite for Nigerians.

    “Right now, our members and even those in other sectors are no longer able to pay school fees for their children and even afford rents. Worse still, those being sacked now are so treated without commitment to proper terminal benefits”, the union lamented.

    He said, “The CWC in session notes that it is a shame that Ghana which recently discovered oil has passed its PIB into law. We frown at the politics that becloud passage of the PIB the past eight years when it was first sent to National Assembly.

    “CWC frowns at the refusal of and delay in payment of JV cash calls to the multinationals which has created serious liquidity challenges resulting in negotiating redundancies almost on daily basis.

    “We x-rayed state of the economy and believe a lot needs to be done to put it on track. FG should urgently address the challenges posed by inflation which has risen to 17.9 % and the nonpayment of workers’ salaries at local and state levels”, he said.

     

  • N’Delta Avengers: Stakeholders call for urgent cessation

    N’Delta Avengers: Stakeholders call for urgent cessation

    The South south stakeholders have called for immediate cessation of hostilities and violence in the crude oil and gas-rich Niger Delta region, especially with decision of members of Niger Delta Avengers and other militant groups to continue to bomb pipelines and other facilities of oil companies.

    They also condemned the disruption of oil pipelines, crude oil exploration and exploitation, as well as the emergence of various groups making one agitation or another.

    The stakeholders, comprising top government officials, other eminent personalities, security chiefs, human rights activists, members of civil society organisations and representatives of the private sector, on Friday at a summit in Port Harcourt, the Rivers State capital, declared that end must come to militancy in the Niger Delta, to pave the way for commensurate development in the hitherto neglected region.

    The summit on towards achieving peace and sustainable development in the Niger Delta, with the theme: “Promoting Peace, Democracy and Stability in Nigeria through the Media, Socio-Cultural Institutions and Youth Driven Community Based Groups,” was organised by the Journalists for Democratic Rights (JODER), with the support of the Ford Foundation (West Africa Regional Office).

    Emphasis at the summit was placed on capacity building, conflict prevention and management, as well as peace building.

    In a nine-point communique, signed by the Executive Director of JODER, Mr. Adewale Adeoye, who is also a foremost journalist, it was stated that the summit was to strengthen a people-driven process for conflict prevention, conflict management and peace-building in the Niger Delta.

    The programme also targeted primary and secondary beneficiaries, cutting across faith-based groups, community-based organisations, women groups, civil society organisations, security agencies, youth groups, organised labour and the informal sector, as well as representatives of various ethnic groups, including Ijaw, Isoko, Ikwerre, Ndoni, Ogoni, Urhobo, Efik, Ibibio, Itsekiri and non-indigenes in the Niger Delta, among others.

    The communique read in part: “Participants demand deliberate urgent attention and actions in addressing the growing poverty rate, growing drop out of children in schools, due largely to poverty and economic misery, disruption of oil pipelines and the emergence of various groups making one agitation or another.

    “Participants demand immediate cessation to all forms of violence in the Niger Delta and that critical stakeholders must embrace peaceful resolution of all the lingering crises in the region, through advocacy and necessary follow-up action.

    “Participants noted that there is the urgent need to resolve the crises in the Niger Delta region in a honest, transparent and open manner, with the view to addressing the fears of the communities, the authorities, the multinationals and business community, as well as the agitators themselves.

    “Participants condemn the invasion of indigenous Ijaw and other Niger Delta communities by armed security agents and frown against the gross human rights violations against the people by the military and other security agencies.”

    The stakeholders also stated that the ongoing clean-up in Ogoniland of Rivers state’s four Local Government Areas of Khana, Gokana, Tai and Eleme, should be extended to other lands polluted in the Niger Delta, without further delay.

    They resolved to set up a working group on the Niger Delta, in order to constantly bring community leaders and civil society organisations together, towards finding people-driven solutions to the problems of the Niger Delta.

    The communique also noted that: “Participants call on the Nigerian authorities to recognise the right to self-determination, as entrenched in the United Nations charter and other obligations of the UN on the rights of Indigenous people, including the International Labour Organisation (ILO) Convention 169 on Biological Diversity.

    “Participants demand speedy passage of the Petroleum Industry Bill (PIB) by the 8th Session of the National Assembly.

    “Participants call on the government, communities and other stakeholders in the Niger Delta to see the need to explore the potential of working together, remove suspicion and mutual distrust, in order to deal with the hydra-headed problems that confront the people of the oil producing communities.”

    The executive director of JODER, earlier in his welcome address, stated that the forest reserve of the Niger Delta had remained largely depleted and at present to an all-time low, with land utterly polluted, natural streams almost extinct and means of living under sever attacks, thereby posing a serious threat to generations unborn.

    Adeoye said: “Previous efforts of governments at various levels to address the situation have not led to appreciable results, in spite of the huge resources committed to the process.

    “Such efforts include the introduction of the 13 per cent revenue derivation, the setting up of the Niger Delta Development Commission (NDDC), the establishment of the Ministry of Niger Delta Affairs and the recent adoption of the United Nations Environment Programme (UNEP) report on Ogoniland’s environmental assessment, which the Nigerian Federal Government has promised to implement, leading to the  recent kick-off of the Ogoni clean-up.

    “Regrettably, the Niger Delta narrative has been consistent stories of violence, desperation and various vices associated with legitimate agitations of the people; “Irrespective of the various efforts of the governments, the Niger Delta remains fundamentally poor and vulnerable, with limited opportunities for the people to transform their lives in their own way, through self actualisation.”

    JODER’s executive director also stated that notwithstanding the challenges facing the peace-loving people of the Niger Delta, they had the infinite ability to aspire to a greater future, founded on justice, liberty and respect for the dignity of the human person.

    The Niger Delta is home to indigenous ethnic groups that have lived in their territories for thousands of years, while the region is a great ancestral homeland of many forest-dependent people, with a rich heritage of amazing culture and civilisation.

    The Niger Delta is by far the second largest mangrove forest in the world, rich in natural resources, including but not limited to land and sea animals, the fauna, and hundreds of plant species, which add value to the diverse tributaries and estuaries linked to the vast ocean and the great River Nun and Niger.

    The region has no fewer than 16 distinct ethnic nationalities, with history of shared heritage and cultural identities, including social and trade relations, long before the advent of colonial rule.

    As with any other natural setting, there were a history of conflicts and strives among the nationalities, but the Niger Delta, however, remains one of the most critical nerve centres of the Nigerian economy, owing to its rich natural endowments and resourcefulness of the people.

    The social and economic activities of the nationalities that make up the Niger Delta are linked to the environment, which supports the survival of the people, who depend on livelihoods generated by land and forests resources.

    For half a century, the people of the Niger Delta have been facing various challenges to their survival, due to various adverse factors, including disruptive oil exploration, lack of opportunities, national malaise of corruption, forest devastation, depletion of sea and land resources, gas flaring and environmental pollution; the Niger Delta produces the mainstay of Nigeria’s economy, which is crude oil and gas, but without equitable sharing/allocation of the resources, which remains a major source of conflict in the country.

  • PIB: Indigenous producers flay fiscal regime

    The local exploration and production firms under the aegis of Nigerian Indigenous Producers have frowned at the new fiscal provisions in the new Petroleum Industry Bill (PIB) before the National Assembly.

    The producers, including marginal field players, said the new fiscal regime doesn’t encourage them to develop in view of increased taxes and levies. This they insist is contrary to the primary objective of the federal government whose intention is to see local operators grow and control substantial portion of the industry.

    A local operator, who spoke to our correspondent in confidence, said fiscal regime that existed when they were given the oil fields have substantially changed in the new bill and will be uneconomical to their business.

    He, however, said they (indigenous producers) have sent a position paper to the government on their demands and discussions are currently going on between them.

    The operator said: “The fiscal regime on which we were given the licence has changed as proposed by the PIB. We have made our position known as a group and have been engaging government as a group.

    “The indigenous producers, is talking to the government. We have a position paper on that. But basically our fiscals have changed and we are going to pay more royalties, petroleum profit tax (PPT), and the hydrocarbon tax on top of the PPT. This is contained in our position paper.

    “It is like a negotiation going on between us and the government and I don’t want to speak as a company on it. We want to see an improvement the new fiscal regime.”

    The operator also said the Nigerian Content Development Fund (NCD fund), which people think would help indigenous operators to have easy access to finance, unfortunately, is not big enough for exploration and production activities. The fund is basically for oil service companies.

    “The fund available under the NCD is actually more for the service companies. NCD doesn’t have the funds to develop E&P assets because of the sheer scale of fund required to develop the assets unless they will beef it up,’’ he said.

  • The PIB can of worms

    The PIB can of worms

    One of the arguments that Northern politicians have deployed for so long to frustrate passage of the Petroleum Industry Bill (PIB), is that it gives too much to the Niger Delta – the region which for over half a century has hosted the exploitation of Nigeria’s crude oil with all attendant devastation.

    A typical argument was made on the floor of the Senate last Tuesday, by Senator Ahmed Lawan of the All Nigeria Peoples Party (ANPP). He said the Niger Delta states did not deserve additional funds, having received N11 trillion from derivation, the Ecological Fund and other sources since 1999.

    Waxing eloquent, he claimed that various state governments in the oil-producing belt that had been receiving 13 per cent derivation had virtually nothing to show for the cash inflows. Putting the extra burden of more money on the people was unacceptable he argued.

    Positions similar to that advanced by Lawan have been canvassed in the past by the likes of Governors Rabiu Kwankwaso of Kano and Babangida Aliyu of Niger. In fact, the governors did make the point that what one or two of the Niger Delta states receive from the federal purse dwarfed what accrued to the entire North.

    Each time those arguments were made they not only came across as insensitive, but also irrational. Now, in the light of the recent revelations about the ownership of oil blocs in the country, they have been exposed as fraudulent and hypocritical.

    In the face of boisterous Northern opposition to the PIB, Chairman, Senate Committee on Business and Rules, Ita Enang (Akwa Ibom North-West), changed the tenor of the debate at last Wednesday’s plenary when he accused influential northerners of being owners of 83 per cent of the entire oil wells in the Niger Delta!

    For those who may have missed the report, I reproduce here Enang’s list. Those to be found there include Alhaji Mai Deribe, Borno State, who owns Cavendish Petroleum – operator of OML 110 with an average revenue of N4billion monthly.

    Seplat/Platform Petroleum, operators of the ASUOKPU/UMUTU Marginal Field has Mallam (Prince) Sanusi Lamido of Kano, as major shareholder and director. This Sanusi is not the same person as the Central Bank Governor.

    Another well-known name is General T. Y. Danjuma of Taraba State. He established South Atlantic Petroleum Limited (SAPETRO). He is also chairman of Eni Nigeria Limited. SAPETRO partnered with Total Upstream Nigeria Limited (TUPNI) and Brasoil Oil Services Company Nigeria Limited to become operators of the OPL 246.

    AMNI International Petroleum and Development Company is owned by Alhaji (Colonel) Sani Bello of Kontangora , Niger State – another ubiquitous player in corporate Nigeria. They operate OML 112 and OML 117.

    According to Enang, former Petroleum Minister and former OPEC Chairman, Rilwanu Lukman, manages AMNI oil blocks “with very key interest in the NNPC/Vitol trading deal.”

    Among other disclosures are that Oriental Energy Resources Limited, a company owned by Maiduguri-based multimillionaire, Alhaji Mohammed Indimi, runs three oil blocs – OML 115, the Oldwok field and the Ebok field.

    Alhaji Aminu Dantata’s Express Petroleum and Gas Limited, operates OML 108. OML 113 allocated to Yinka Folawiyo Petroleum Limited is owned by Alhaji W.I. Folawiyo. Alhaji Saleh Mohammed Gambo, North East Petroleum Limited, is the holder of the OPL 215 Licence.

    North East Petroleum was awarded blocs OPL 276 and OPL 283 and sealed a Joint Venture Agreement with Centrica Resources Nigeria Limited and CCC Oil and Gas.

    INTEL is owned by former Vice President Abubakar Atiku, the late Gen. Shehu Musa Yar’Adua and Emir of Kano, Ado Bayero. It is believed to own substantial stakes in the oil exploration industry in Nigeria as well as Sao Tome and Principe.

    Among the few Southern-owned business interests on the list are Mike Adenuga’s Conoil – the oldest indigenous oil exploration company with six blocks. OPL 291 was awarded to Starcrest Energy Nigeria Limited, owned by Emeka Offor and later sold to Addax Petroleum.

    Without question these revelations must have caused considerable disquiet and embarrassment in certain circles. The lopsidedness of the distribution tells the story of Nigeria in the last 52 years. Clearly, the pattern of distribution of the blocs is down to the fact that for the bulk of our years as an independent nation the North has produced leaders at the center whether under military regimes or in civil dispensations.

    Knowing what we now know we can return to the central point of Senator Lawan’s argument which is that the Niger Delta states have received too much money – over N11 trillion from various sources since 1999 to use his figures. We may not even make an issue over how much is too much. But perhaps Lawan may wish to enlighten us about how much accrued to northern states in the same period so we can have a reasonable discussion.

    He also makes the moot point that the states have not been able to manage – such that they have very little to show. Nigeria’s reality, however, is that governments whether at federal or state level have not been able to manage Nigeria’s resources in a way that would have transformed our fortunes. No region – not the north or even Lawan’s home state – can claim to have done better.

    If such performance were the basis for revenue allocation, I dare say many states and regions will receive zero allocation.

    Now we have a situation where these influential Northerners who own 80% of Nigeria’s oil blocs are receiving more revenue than the entire region from which they come. We have no information as to how long they have owned these assets. The question we should ask is how these billions have benefitted the North?

    The whole plank on which Northern opposition to the PIB has rested for so long is equity. What is equitable in a situation where a section of the elite corner these oil blocs and not a single name from the Niger Delta appears on that list? It goes beyond being inequitable; it is downright embarrassing for this country.

    Of course, there’s no guarantee that if the door of the elite oil bloc owners association is opened a crack to let in one or two persons from the Niger Delta it will change much for the poverty-stricken masses in the creeks. Still, this distorted ownership structure cannot be allowed to remain.

    The Arewa Consultative Forum (ACF) has called on the government to investigate Enang’s claim. I absolutely align myself with that suggestion. We should establish how these blocs got into the hands of those who own them. We must then revoke all licences and establish a more equitable way of distributing them to ensure better balance – east, west, north and south.

    The PIB is not perfect and those who argue that too much power is concentrated in the hands of the President and Petroleum Minister may have their point.

    But all those who are still nitpicking over 10% of oil company profits going to host communities need to balance their greed and envy with an understanding of the uncommon ecological damage that these communities have suffered, and continue to suffer. Perhaps, one month of legislative oversight in the creeks – under the shadow of a gas flare – will change the perspective of the Abuja bunch.