The Nation Newspaper

Tag: PIB

  • ‘PIB delaying production sharing contracts review’

    The non passage of the Petroleum Industry Bill (PIB) has been identified as the sole reason delaying the review of the Production Sharing Contracts (PSCs) with oil companies, Managing partner, J.O Adidi and Co., John Adidi, has said.

    The Nigeria Extractive Industries Transparency Initiative (NEITI), in a recent study, revealed that Nigeria had lost no less than $16 billion, over a 10-year period (2008–2017), due to non-review of the 1993 production sharing contracts (PSCs) with oil companies.

    The PSC was introduced in 1993 to address some of the issues faced by the Joint Operating Agreement (JOA) and to provide a suitable agreement structure to encourage foreign investment in offshore acreage. Under the PSCs, the NNPC is the holder of the business while the international oil company (IOC) is the contractor. In 1993 the NNPC entered into PSCs with eight IOCs and Nigeria is believed to have attracted much needed additional foreign investment.

    According to NEITI, between 1998 and 2005, total production from PSC assets was below 100,000,000 barrels per year, while Joint Venture (JV) companies produced over 650,000,000 barrels per year. By 2017, total production by PSC companies was 305,800,000 barrels, which was 44.32 per cent of total production. Total production by JV companies was 212,850,000 barrels, representing 30.84per cent of total production.

    The development, according to NEITI, therefore, calls for an urgent review of the PSCs to stop the huge revenue losses to Nigeria.

    NEITI added that such a review was important for the country because oil production from PSCs has surpassed production from JVs as productions from PSCs contribute the largest share to the nation’s income.

    Adidi, who described it as part of the regulatory issues that have been pending, said provisions in the law had prescribed that if crude oil price rises above a certain level the production sharing contracts is supposed to be revisited

    He told The Nation on telephone that Nigeria was supposed to get more revenue when the oil price goes up, adding that oil price had never gone below $20. He expressed concern that oil price had always gone up in the past years and Nigeria had not taken advantage of that.

    He recalled when the Petroleum Industry Governance Bill (PIGB) came up everybody expressed excitement because it was a compilation of laws that would take care of the PSCs and similar issues, but unfortunately the PIGB up till now is still in the works. “So, the plan was to have a collection of laws for the whole industry through the PIB, but nobody envisaged that the bill by now would not have been approved,” he added.

    According to him, if the PIGB had been approved every issue concerning the PSCs would have been settled. “Unfortunately, we are approaching the 9th Assembly. The 8th Assembly was unable to pass the PIB and they are coming to the end of their tenure by May. There’s no way the bill can be passed in the next two months.

    “We have to be realistic, what the 8th Assembly could not do in three years and 10months they will not be able to achieve in two months.

    “So, what it means is that the 9th Assembly will start all over again because there will be new members, who don’t know what the PIB is even all about, they need to be educated, and they need to follow the process.

    “It’s unfortunate that we don’t tackle some of these issues speedily as a nation and since oil still remains the mainstay of the nation. It’s even a shock that those in authority are not patriotic enough to do this in the national interest. It will continue to affect us, we are the ones losing,” he noted.

    Adidi said the multinational oil companies would not tell Nigeria to review the agreement when they know they will pay more. “It’s our duty as a nation to revisit the contract and bring out issues that needed to be reviewed and approach our partners to review the clauses in the PSCs and the country will benefit,” he said.

    It would be recalled that the PIGB that was passed, but the president disagreed with some provisions in the bill and it has remained unsigned.

    The nineth Assembly, Adidi explained, would have to start from square one, noting that it will be inaugurated sometime in June after the President’s swearing in.

    “I don’t see the nineth Assembly taking position to be able to visit the PIGB until may be around August, at the earliest. Also, as we speak, the budget of 2019 has not been approved. To me, that should be the main thrust of the remaining period of the eighth Assembly. Let them do everything possible to approve the budget. From the fillers we are getting they are not even thinking of approving the budget, their session may even end without approving the 2019 budget. Recall, the 2018 budget was approved in June, ‘so if it’s going to be approved in June that means the tenure of the 8th Assembly would have been over,” he said.

    According to Adidi, this is one major reason foreign investors are scared away. “The level of uncertainty was so high and there are markets where there are certainties, the rules are there and you can project into the future,” he said.

    National Assembly Petroleum Upstream Committee Vice Chairman, Senator Gershom Bassey, who also spoke on telephone, agreed that the oil price benchmark had exceeded $20 several times in the past years, but unfortunately nobody has reviewed it. He said the issue was brought on the floor of the House and there was a committee looking into it, adding that some of these things were covered in the upcoming petroleum industry fiscal bill despite the problems and delays in the whole PIB.

  • ‘PIB delaying production sharing contracts review’

    The non passage of the Petroleum Industry Bill (PIB) has been identified as the sole reason delaying the review of the Production Sharing Contracts (PSCs) with oil companies, Managing partner, J.O Adidi and Co., John Adidi, has said.

    The Nigeria Extractive Industries Transparency Initiative (NEITI), in a recent study, revealed that Nigeria had lost no less than $16 billion, over a 10-year period (2008–2017), due to non-review of the 1993 production sharing contracts (PSCs) with oil companies.

    The PSC was introduced in 1993 to address some of the issues faced by the Joint Operating Agreement (JOA) and to provide a suitable agreement structure to encourage foreign investment in offshore acreage. Under the PSCs, the NNPC is the holder of the business while the international oil company (IOC) is the contractor. In 1993 the NNPC entered into PSCs with eight IOCs and Nigeria is believed to have attracted much needed additional foreign investment.

    According to NEITI, between 1998 and 2005, total production from PSC assets was below 100,000,000 barrels per year, while Joint Venture (JV) companies produced over 650,000,000 barrels per year. By 2017, total production by PSC companies was 305,800,000 barrels, which was 44.32 per cent of total production. Total production by JV companies was 212,850,000 barrels, representing 30.84per cent of total production.

    The development, according to NEITI, therefore, calls for an urgent review of the PSCs to stop the huge revenue losses to Nigeria.

    NEITI added that such a review was important for the country because oil production from PSCs has surpassed production from JVs as productions from PSCs contribute the largest share to the nation’s income.

    Adidi, who described it as part of the regulatory issues that have been pending, said provisions in the law had prescribed that if crude oil price rises above a certain level the production sharing contracts is supposed to be revisited

    He told The Nation on telephone that Nigeria was supposed to get more revenue when the oil price goes up, adding that oil price had never gone below $20. He expressed concern that oil price had always gone up in the past years and Nigeria had not taken advantage of that.

    He recalled when the Petroleum Industry Governance Bill (PIGB) came up everybody expressed excitement because it was a compilation of laws that would take care of the PSCs and similar issues, but unfortunately the PIGB up till now is still in the works. “So, the plan was to have a collection of laws for the whole industry through the PIB, but nobody envisaged that the bill by now would not have been approved,” he added.

    According to him, if the PIGB had been approved every issue concerning the PSCs would have been settled. “Unfortunately, we are approaching the 9th Assembly. The 8th Assembly was unable to pass the PIB and they are coming to the end of their tenure by May. There’s no way the bill can be passed in the next two months.

    “We have to be realistic, what the 8th Assembly could not do in three years and 10months they will not be able to achieve in two months.

    “So, what it means is that the 9th Assembly will start all over again because there will be new members, who don’t know what the PIB is even all about, they need to be educated, and they need to follow the process.

    “It’s unfortunate that we don’t tackle some of these issues speedily as a nation and since oil still remains the mainstay of the nation. It’s even a shock that those in authority are not patriotic enough to do this in the national interest. It will continue to affect us, we are the ones losing,” he noted.

    Adidi said the multinational oil companies would not tell Nigeria to review the agreement when they know they will pay more. “It’s our duty as a nation to revisit the contract and bring out issues that needed to be reviewed and approach our partners to review the clauses in the PSCs and the country will benefit,” he said.

    It would be recalled that the PIGB that was passed, but the president disagreed with some provisions in the bill and it has remained unsigned.

    The nineth Assembly, Adidi explained, would have to start from square one, noting that it will be inaugurated sometime in June after the President’s swearing in.

    “I don’t see the nineth Assembly taking position to be able to visit the PIGB until may be around August, at the earliest. Also, as we speak, the budget of 2019 has not been approved. To me, that should be the main thrust of the remaining period of the eighth Assembly. Let them do everything possible to approve the budget. From the fillers we are getting they are not even thinking of approving the budget, their session may even end without approving the 2019 budget. Recall, the 2018 budget was approved in June, ‘so if it’s going to be approved in June that means the tenure of the 8th Assembly would have been over,” he said.

    According to Adidi, this is one major reason foreign investors are scared away. “The level of uncertainty was so high and there are markets where there are certainties, the rules are there and you can project into the future,” he said.

    National Assembly Petroleum Upstream Committee Vice Chairman, Senator Gershom Bassey, who also spoke on telephone, agreed that the oil price benchmark had exceeded $20 several times in the past years, but unfortunately nobody has reviewed it. He said the issue was brought on the floor of the House and there was a committee looking into it, adding that some of these things were covered in the upcoming petroleum industry fiscal bill despite the problems and delays in the whole PIB.

  • Why PIB is delayed, by Buhari

    President Muhammadu Buhari yesterday said  reforming the petroleum industry was necessary to unlock numerous untapped potentials for the nation and that he will not be in a rush to carry out reforms.

    According to him, the reforms in the industry must be well thought out and must have the best interest of Nigeria and Nigerians as its core objective.

    He spoke when the National Union of Petroleum and Natural Gas Workers (NUPENG) honoured him with  Grand Comrade of the Productive Workers of the Nigeria Oil and Gas Union. The award was presented to Buhari by its National President, Comrade Williams Akporegha, at the Presidential Villa, Abuja.

    Buhari also said his administration was prepared to respond to any acts of hostility and sabotage of the nation’s oil assets in the Niger Delta region.

    He said the industry reform was necessary to unlock the untapped potential for the nation. He assured that whatever reforms taking place in the sector must be in the overall interest of the country.

    He said:  “Such reforms cannot and must not be rushed if we must get it right. We are still suffering from the effects of many legacy policies that were rushed and passed without fully appreciating the consequences the provisions embedded in them.

    “Whatever decision we take now will impact either negatively or positively on generations to come. The PIB was conceived to ensure Nigeria’s future generations are positively impacted by its oil wealth.

    “I want to assure you that dialogue on the PIB is still on-going. At the end, we will have a bill that the nation will be proud of.

    On security in the Niger Delta, he said pipeline vandalism has declined. “We have, and will continue to promote peaceful engagement with the communities while at the same time maintaining our readiness to respond to any hostile acts of sabotage,” he said.

    He commended the union for its support to government which he said has contributed to the continued uninterrupted supply of products to consumers across the country in the last three years.

    Urging the oil workers to continue on its patriotic path, he assured of his government’s support to the course of the workers at all times.

    Speaking on the demand of the union to fix the nation’s refineries, Buhari said the Public Private Partnership (PPP) approach adopted to rehabilitate existing refineries has taken longer than expected.

    He said: “The NNPC has concluded the process for selecting the private sector partners that will rehabilitate the refineries. I am informed that they are working out finances and hopefully, work will commence soon.”

    The government, he said, will also support innovative ideas that will bring new refineries investments into the country.

    He said: “As one of the architects of the Nigeria Contents Monitoring and Development Act, l am sure NUPENG members appreciate that a key principle of this act is the indigenisation of certain processes and production functions. Indigenisation means local value addition leveraging local resources where possible.

    “The Act specified minimum local content requirements, including manpower, for all projects and contracts in the oil and gas industry. The Nigerian Content Development and Monitoring Board is fully empowered to ensure compliance. l will direct the  Minister of State Petroleum Resources to review the issues you have raised and take appropriate action to ensure compliance with the Act by operators in the industry.”

    Before conferring the award on the President, Akporegha, whose leadership was inaugurated last April, commended Buhari for his unparalleled strides in checking corruption, bridging the gap between the rich and poor through Trader-Moni and school feeding, and in infrastructural projects such as roads, which NUPENG members are now enjoying.

    He however noted that the non passage of the PIB has posed a problem to the petroleum sector, adding that there was need for government to check continued importation of petroleum products, as rthe efineries have not been working, thus leading to redundancy of NUPENG members while the nation suffers foreign capital flight.

    He said: “You administration’s practical steps in bridging the wide gap between the rich and the poor in the country through various initiatives such as Trade Moni, support for farmers, embargoes on luxury/ostentatious goods, TSA, school feeding etc have gone a long way in alleviating poverty in the country.”

    The NUPENG also lamented the non-implementation of Buhari’s Executive Order on local content and employment of Nigerians in the oil sector as multinational firms are still not appropriately employing Nigerian graduates.

    The delegation further appealed to the President to direct security agencies to intensify surveillance and protection of oil pipelines and other infrastructure, and concluded by wishing  Buhari victory in 2019.

    “In recognition of your unparallel commitment and devotion to a new Nigeria that adequately protects and provides for the citizenry and earns global respect and recognition, the entire rank and file members of the Union confer on you as part of NUPENG 40th Anniversary celebration, the award of Grand Comrade of the Productive Workers of the Nigeria Oil and Gas Industry,” Akporegha stressed.

     

  • I’ll sign PIB into law, Buhari assures oil workers

    President Muhammadu Buhari has assured workers in the oil and gas industry of his commitment to ensuring a conducive working environment for them, saying he will accelerate the process of signing into the law the Petroleum Industries Bill once it is passed into law by the National Assembly.

    The President, who spoke through the Minister of Labour and Employment, Senator Chris Ngige, at the 40th anniversary celebration of the Nigeria Union of Petroleum and Natural Gas (NUPENG) in Abuja, said his government was committed to the welfare of workers.

    He added that he will do everything possible to ensure a conducive working environment for them.

    The President also reminded them of his government’s stance on constitutionality, saying he would always uphold the Nigerian constitution, especially section 40 which guarantee freedom of association and freedom to form unions.

    He emphasised the need for dialogue in dealings with employers, saying: “There can be no employers without employees and there can be no employees without employers. So, you need each other’s always and must, therefore, work together for the common good of all.”

    NUPENG President Comrade Williams Akporeha said despite challenges and obstacles, workers solidarity remains ever constant like the northern star.

    He added: “Our resolve is unshaken, our unity unruffled, integrity intact and we remain indomitable and irrepressible as any industrial union will ever dream to be. In the light of these, we deserve to celebrate and felicitate together, and this we are here to do today.

    “However, one major hydra-headed monster we have been confronting for over two decades now is the titanic struggle against casualisation and indecent employment in the Nigeria oil and gas industry.”

    He said NUPENG has in the last four decades consistently and creditably contributed to the growth of the Nigeria Oil and Gas Industry and the enthronement of industrial peace and harmony has also positively impacted on the socio-political and economic growth of the nation.

     

  • PIB: Kachikwu commends PENGASSAN

    The Minister of State for Petroleum Resources Dr Ibe Kachikwu, has commended the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) for their contribution on the Petroleum Industry Bill (PIB).

    Kachikwu gave the commendation at the  Department of Petroleum Resources (DPR) PENGASSAN branch 5th  Triennial delegate Conference, in Abuja on Tuesday.

    The Minister was represented by Ibrahim Mairiga, Director Human Resources,Ministry of Petroleum Resources.

    ” I am happy with the relationship the union have with the ministry, DPR management and the  role it has played in the oil and gas sector in general.

    ” The ministry is also pleased with your contribution in the PIB, it was helpful for the National Assembly in carrying out their duty especially on ensuring that independent regulator emerges, ” he said

    He urged the new executives that would be elected after the conference to continue the good work for the growth of the sector as well as the country.

    In his remarks, DPR Executive Director, Dr Mordecai Ladan also commended the union members for their contribution in ensuring global best practices in the department.

    ” Your contribution has helped us to achieve so much as a regulator and I want you to keep it up.

    “I know we have made some decisions that are not palatable for the union but all was for the interest of the country and the sector.” he added.

    He urged the incoming executives to take a leaf from the outgoing member to ensure continuity in the system.

    Also, in his welcome address, the DPR Branch Chairman, Bello Garba said the union had collaborated with management in moving DPR forward.

    He said the union had continued to play very constructive role in protecting and strengthening the workforce which had contributed to positive results.

    “Overtime, unionism has changed remarkably in response to the major challenges and needs of members, particularly in the area of welfare and Nation building.

    ” I wish to point out that the union must be alive in proffering and supporting moves to better the situation in our nation, while maintaining it’s relevance as a pressure group.

    ” Therefore, it will be pleasing if we are able to achieve consensus on having well equipped and empowered. independent regulator, ” he said.

    According to him, it will culminate to a one-stop-shop for accelerating economic growth and development of Nigeria at large and the oil and gas industry in particular.

    He thanked members for the support they gave the union in the past three years. (NAN)

  • FG loses $30b FDI to absence of PIB –Saraki

    •Says 2019 politics won’t affect passage

    Senate President Bukola Saraki at the weekend said that the federal government loses $30 billion Foreign Direct Investment (FDI) to absence of the Petroleum Industry Bill  (PIB) yearly.

    He said the National Assembly will not play politics with the passage of the remaining components of the bills despite the pressure of the 2019 election politicking.

    He noted that the enactment of the law will create jobs for those that have been unemployed.

    He was represented by the chairman, Senate Committee on Petroleum (Upstream), Gershowl Bassey at the Oil &Gas Public Lecture Series “Abuja 2018” of the Institute of Oil and Gas Research and Hydrocarbon Studies.

    The theme of the lecture was “Nigeria’s Petroleum Industry Governance Law & Global Investment opening in the sector.”

    Speaking on the importance of the bills, Saraki said: “This is not politics. It is about our country.

    “All the parties are interested in getting this thing done because of the lack of the passage of the PIB, we are losing $30 billion  Foreign Direct Investment every year.

    “The effects in terms of job creation are massive so we are losing jobs.”

    The Senate President insisted that it is about time for Nigerians to revolutionalise the sector for optimal service and delivery.

    The chairman of Council of the Institute, Prof. Akin Akindoyemi, noted the bills have failed to address the issue of ownership in the sector.

    According to him, the bill concentrates on the decentralisation of the Nigerian National Petroleum Corporation (NNPC) and leaves out the critical issues of ownership.

    He called for the privatisation of the sector to give stakes to individuals and communities.

    He urged that the bills should address the issue of exploitation of communities by government and oil companies.

     

  • PIB: NNPC recommends split of petroleum licences

    The Nigerian National Petroleum Corporation (NNPC) on Wednesday  recommended the splitting of petroleum licences into two components for prospecting and production phases under the draft Petroleum Industry Administrative legislation currently before the National Assembly.

    In a presentation at the Public Hearing organized by the House of Representatives Committee on the Petroleum Industry Administrative Bill (PIAB), Petroleum Industry Fiscal Bill (PIFB) and the Petroleum Industry Host Community Bill (PIHCB), Group Managing Director of the corporation, Dr. Maikanti Baru, said the proposed split would prevent a situation where operators would sit perpetually on oil acreages.

    The NNPC’s recommendation under the PIAB seeks a break up of Petroleum Licence into Petroleum Exploration Licence (PEL) – to prospect for petroleum, while the second component to be known as Petroleum Lease (PL), should be created to cover the production phase to search for, win, work, carry way and dispose of petroleum.

    Its Group General Manager, Group Public Affairs Division, Mr. Ndu Ughamadu disclosed this in a statement yesterday. 

    The corporation also pushed for a re-think of the duration of licences as proposed in the PIAB which stipulates initial duration of 25 years for onshore and shallow water petroleum licence and 30 years for deep water and frontier acreages.

    NNPC, however, proposed five years prospecting licence for onshore and shallow fields and a duration of 10 years for deep offshore and frontier basins. 

    It recommended 20 years production lease for onshore and shallow fields as well as deep offshore and frontier basins. The corporation noted that only the production lease period should be renewed for a period not exceeding 20 years.

    On the PIFB version of the proposed oil industry law, NNPC recommended a three-stage licences regime consisting of: Exploration Licence (EL) – to explore for petroleum on a non-exclusive basis; Petroleum Exploration Licence (PEL) – to prospect for petroleum on exclusive basis; and Petroleum Lease (PL) – to search for, win, work, carry away and dispose of petroleum.

    Beyond the clause by clause recommendations, the corporation also advocated for the simplification of the fiscal system for ease of implementation and to ensure progressivity.

    It called for expunging all regulatory issues out of the draft legislation to empower the Commission to regulate the industry effectively.

    NNPC highlighted the need to introduce and provide clauses that will ensure easy review of provisions of the bill in response to economic, technical and other considerations, while disallowing legislation on issues bordering on contracts.

    Chairman of the House Committee, Honorable Alhassan Ado Doguwa, thanked the NNPC for its contribution, noting that the committee would sift through all the submissions by stakeholders before taken informed decisions on the issues.  

  • PIB: NASS seeks stakeholders’ support

    The National Assembly at the weekend sought the contributions of relevant stakeholders towards subsequent passage of the Petroleum Industry Bill(PIB) as the National Joint Committee on PIB called for robust inputs from the Oil Producing Communities in Ondo state for the success of the bill. Leader of the Committee, Senator Gershom Bassey from Cross River State, said the Bill will make meaningful impact on the lives of the host communities of oil companies when passed.

    The stakeholders meeting was hosted in Ilaje local government area of the state by the management of the Ondo State Oil Producing Area Development Commission (OSOPADEC). Bassey said the delays in the passage of the bill have caused the country as much as $15 Billion per annum in lost investments. “The lack of the much needed reforms over the last decade have created a climate of uncertainty in Nigeria’s petroleum sector which has not been conducive in attracting further investments.

    “As we are aware, Nigeria is Africa’s largest Oil and Gas producers and the Petroleum Sector has long suffered from frequent scandals, mismanagement and lack of coherent guidelines and regulations,” he said. OSOPADEC’s Chairman,Gbenga Edema at the meeting assured the National Assembly Committee of Ondo State’s quality representation at the upcoming hearing on the PIB in Abuja.

  • PIB: don’t induce lawmakers, Saraki tells oil firms

    Senate President,  Bukola Saraki yesterday advised the International Oil Companies and Oil Producers Trade Section (IOCs/OPTS) operating in the country not to induce lawmakers during the consideration and passage of the Fiscal and Host Communities Bills -component of the Petroleum Industry Bill (PIB) pending before the National Assembly.

    Saraki, who gave the advice when the leadership of the IOC/OPTS visited him in Abuja, said the leadership of the eighth National Assembly has made it clear to all lawmakers involved in the process to live above board.

    A  statement by his Chief Press Secretary, Sanni Onogu, explained that Saraki called on the leadership of the OIC/OPTS to report any lawmaker who attempts to seek personal favours when the process of considering the bills commences this month.

    Saraki said: “Let me also use these opportunity to just make some ground rules clear. We, as the 8th National Assembly, – I told you at the beginning that the two houses will be on the same position on the remaining bills. I think we have shown that on the first bill we passed.

    “I am confident that for these other bills too, we will do the same. I want to assure you that it is in our own interest and the leadership has made it clear to all the members involved that this must be a transparent process.

    “We are doing it in the interest of the country. Leadership is not going to tolerate any hanky-panky. No favours. No gifts. Nothing must be given to get this work done.

    “And we want to mandate you that if you see any of these, you should be able to bring it to the attention of the leadership. All we want to see is a Bill that is in the interest of Nigeria and we have read the riot act to all our members that nobody should approach anybody for any interest towards any benefit and I want to make this very clear.

    “This is the position of the leadership on this issue. We must ensure that everything is above board because this is not just a Bill for today, but for future generations. We must make sure that in our time, it is done properly.”

    Saraki said after the passage of the  Petroleum Industry Bill after the passage of the Petroleum Industry Governance Bill (PIGB) by the National Assembly which is now before the Presidency for assent, the process for the passage of the Fiscal and Host Communities Bills will soon commence – to pass a petroleum bill that will be a “win-win” for all stakeholders.

    He said: “This is where we are now and this is where it concerns those of you who are operators to see that we can pass a petroleum bill that is a win-win for all.

    “A petroleum bill that will be a win for Nigeria on the revenue side, investment side and jobs creation; and it is also a win for those who are investing in Nigeria because we appreciate that it is a very competitive world out there and we must make Nigeria competitive.

    “The only way we can do that is through engagement. We cannot do it by just passing a bill and just putting it at your doorstep, because we are not the ones that will do the investment. So, it has to be a bill that we all believe is in the interest of all those who are involved.’’

     

    It would be recalled that the National Assembly Assembly has commenced the process of passing the Fiscal and Host Communities components of the PIGB now before the President for assent.

    Earlier, the leader of the delegation of the IOC/OPTS and Managing Director of Shell Nigeria Limited, Mr. Osagie Okunbo, said the visit is essentially meant to assure the leadership of the National Assembly that the IOC/OPTS will make its memorandum on the Bills available to the relevant Committees of the National Assembly during the public hearing.

    He said it is important to ensure that the PIB that will be passed is one that will essentially promote investment.

    “Our primary concern is that at the end of the day, we both lay the years of uncertainty to rest, but even more importantly, that a bill that is passed eventually is one that we can all be proud of and the one that we can say will encourage investments in all parts of the oil industry,” Okunbo stated.

     

  • PIB: Saraki warns oil firms against inducing lawmakers

    The President of the Senate, Dr Bukola Saraki has warned the International Oil Companies and Oil Producers Trade Section (IOC/OPTS), operating in the country not to induce lawmakers.

    Saraki read the riot act as hearing would soon commence on the Fiscal and Host Communities Bills, components of the Petroleum Industry Bill which is currently before the National Assembly for consideration and passage.

    Saraki gave the warning  in a statement signed by his Chief Press Secretary, Sanni Onogu, in Abuja on Tuesday.

    Saraki was quoted as saying that the leadership of the 8th National Assembly had made it clear to all lawmakers involved in the process to live above board.

    He called on the leadership of the OIC/OPTS to report any lawmaker who seeks any personal favour when the process of passing the bills commence.

    “Let me use this opportunity to make some ground rules clear. The two houses will maintain the same position on the remaining bills.

    “I am confident that for these other bills too, we will do the same.

    ” I want to assure you that it is in our own interest and the leadership has made it clear to all the members involved that this must be a transparent process.

    “We are doing it in the interest of the country. Leadership is not going to tolerate any hanky-panky. No favours. No gifts. Nothing must be given to get this work done.

    ” If you see any of these you should bring it to the attention of the leadership. All we want to see is a bill that is in the interest of Nigeria.

    “We have read the riot act to all our members that nobody should approach anybody for any benefit and I want to make this very clear.

    “We must ensure that everything is above board because this is not just a bill for today, but for future generations and we must make sure that in our time it is done properly,” he said.

    Saraki pointed out that the process for passage of the Fiscal and Host Communities bills would commence soon.

    He added that the national assembly would pass a petroleum bill that would be a “win-win” for all stakeholders.

    According to him, this is where we are now and this is where it concerns those of you who are operators to see that we pass a petroleum bill that is a win-win for all.

    “A petroleum bill that will be a win for Nigeria on the revenue side, investment side and jobs creation; and it is also a win for those who are investing in Nigeria.

    “We know that it is a very competitive world out there and we must make Nigeria competitive.

    “The only way we can do that is through engagement. We cannot do it by just passing a bill and putting it at your doorstep.

    “It has to be a bill that we all believe is in the interest of all those who are involved,” he said.

    Earlier, the leader of the delegation of the IOC/OPTS and Managing Director of Shell Nigeria Limited, Mr Osagie Okunbo, said the visit was essentially to assure the leadership of the National Assembly of their cooperation.

    He said the IOC/OPTS would make their memorandum on the bills available to relevant Committees of the National Assembly during the public hearing.

    He said it was important to ensure that the PIB that would be passed would promote investment.

    “Our primary concern is that at the end of the day, we both lay the years of uncertainty to rest, but even more importantly, that a bill that is passed eventually is one that we can all be proud of.

    ” The one that will encourage investments in all parts of the oil industry,” Okunbo stated. (NAN)