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Tag: PIB

  • PIB to resolve all sensitive issues – Dogara

    PIB to resolve all sensitive issues – Dogara

    ….says Nigeria’s oil resources enriching elites

    Speaker of the House of Representatives, Hon Yakubu Dogara, Monday said no sensitive or contentious issue would be dodged as the National Assembly will engage stakeholders on contentious issues as it begins work on the Petroleum Industry Bill (PIB).

    Dogara who spoke during the National Stakeholders Summit on Petroleum Industry Reforms organised by the House Committees on Petroleum in Abuja, said the legislature is determined to draft a law for the industry that will serve the best interest of Nigerians.

    His words:  “The need to make consensus and lend a voice to long suppressed agitations in the drafting and consideration of petroleum industry bills informed our decision to organise this stakeholders summit. We are optimistic that this approach will provide the crucial platform to enable us cross pollinate ideas and ventilate our positions on certain contentious issues, regardless how vexed they may be. You can rest assured that our work at the National Assembly is to do your good intention.

    “We are not unaware of the several failed attempts at redeeming the petroleum industry by our predecessors. The Petroleum Industry Bill has been down a long, tortuous, and chequered road. Most of us have been co-travelers on the journey to pass the bill into law, and have the requisite experience to avoid any pitfalls ahead, hence this resolve to seek proper consultations with you and build confidence amongst us.”

    The Speaker said a few elite Nigerians benefitting from the petroleum industry due to poor management adding that such issues will be addressed during the summit.

    “Nigeria is one of the richest petroleum regions of the world. Paradoxically, it has never been able to maximize effectively its immense oil and gas potentials and the revenue accruing from it. The downstream operates in a state of almost continuous malfunction, and for years has been characterised by comatose refineries and an inefficient downstream.

    “It operates under an inadequate legal framework, with an inefficient and poorly maintained pipeline network and depot system. The result is that Nigeria is both one of the world’s largest producers of crude oil, and one of the world’s leading importers of petroleum products, a dependency that has enriched the elite at the expense of the increasingly impoverished masses.

    “The downstream runs on a system of subsidies until recently and uniform pricing which has proved ineffective, in addition to being administered in a very opaque way. Shortages and inadequate supply have characterized the Nigerian downstream for over two decades and can be described as an example of system failure,” Dogara said.

    He lamented that the upstream has not fared better with issues like pipeline vandalism, large-scale environmental degradation, and the world’s highest levels of crude oil theft which he noted had been constants for several years.

    “Decades after the advent of Nigeria’s petroleum industry, problems which led to host community agitation remain unaddressed and highly politicized, and the question of the extent to which revenues from the industry should be shared among the three tiers of government and the people remain, as do the content and limits of corporate social responsibility. These are all crucial issues that should be addressed to guarantee and ensure a stable polity in Nigeria.

    “These examples represent just a few of the present problems of Nigeria’s petroleum industry, and are reflective of an industry that is in critical need of total restructuring, which can only be commenced through the enactment of laws that provide the legal framework that will promote the emergence of an optimal petroleum industry, ” he said.

    The Speaker noted that a defective or inadequate legislation is similar to building a house on a shaky foundation with the expectation that it will stand nonetheless.

    “We cannot afford to continue with such faulty expectations,” he said.

    Dogara said over the years, Nigeria has performed much worse than sub-Saharan Africa as a whole and much worse than other regions of the developing world in terms of human development indicators.

    He said the situation is so bad that Nigeria is regarded as a poster child for ‘how not to run a petroleum industry, adding that good laws would be enacted for the industry by the National Assembly.

  • Oil chief backs PIB’s unbundling

    Oil chief backs PIB’s unbundling

    An oil firm’s chief executive, Emeka Eneh, has lent his support to the unbundling of the petroleum industry sector through the passage of the Petroleum Industry Bill (PIB).

    Eneh, who is  Oildata Group Executive Officer and former President, Society of Petroleum Engineers (SPE) , said  the suspension of public hearing on the bill by the Senate, is to make the PIB robust and encompassing to benefit all stakeholders. With the suspension, more talks would be held on it before hearing resumes, and I believe it will come  out a better Act and more beneficial.

    He said the suspension of the hearing on the PIB does not mean that the lawmakers do not have zeal to pass the bill, stressing that the PIB is necessary and everybody recognises it. “What is happening is that democracy works when there is communication. Senate stepped it down for people to do a little bit more of talking on it. I think there is greater alignment across the industry today for the fact that PIB wouldn’t be considered as one omnibus bill, but taken into realistic chunks that will allow it to move forward. I think there is a consensus for people to move forward.

    “This is important because we have to appreciate that today, we are dealing with oil prices at $40 per barrel compared to $100 per barrel a few years ago. So the reality of today is now dawning on people. Therefore, in looking at the PIB, you have to look at it vis-à-vis the current realities and I think that is the cause of the delay in passage of the bill.”

    On low oil price, low production and renewed hostilities in the Niger Delta region, Eneh urged the government to diversify the productive sectors of the economy, engage in aggressive exploration for discovery of new oil fields and seek ways to develop the region, saying the impact of low oil price is being felt so much by Nigeria because of its over-dependence on oil revenues. He said if the activities of people in various sectors are well coordinated, revenues from non-oil activities would be able to sustain the nation.

    “If the activities of people and cluster development are coordinated, the country will certainly move away from over-dependence on oil revenues. Manufacturing, agriculture and trade constitute over 60 per cent of our GDP. We can leverage expertise in the oil industry to be able to push through regional development, industrial parks and free trade zones developments that are emerging across the country in a coordinated manner.

    He said within the oil industry, secondary processing is important, stating that the Niger Delta energy corridor is a concept that is targeted to transform the Niger Delta into a secondary processing zone, where oil is not simply extracted and evacuated from the country, but that it should go through levels of processing.

    The energy corridor will capture over 40 per cent of crude oil value locally. When this project is actualised, the militancy in the Niger Delta will drastically reduce, he said.

    “The oil exploration has to be continuous because we are taking something out of the ground without replacing it. Therefore, the day we start to cut down exploration is the day our reserves will be limited and at some time, we will start to have a decline in our production. If that decline is not today, it will come in future, he said, adding that this is the best time to do exploration.  When the oil price is low and prices of services are low. Therefore, this is the time to encourage exploration.

  • Oil chief backs planned unbundling of PIB

    Oil chief backs planned unbundling of PIB

    Should the National Assembly unbundle the Petroleum Industry Bill (PIB)? Yes, says an oil chief, Emeka Eneh, who described the planned unbundling of the bill as welcome and in the interest of players in the industry.

    Eneh, Oildata Group Executive Officer and former Society of Petroleum Engineers (SPE) president told The Nation.

    “The suspension of public hearing on the bill by the Senate is to make the bill robust and encompassing to benefit all stakeholders. With the suspension, more talks will be held on it before hearing resumes, and I believe it will come  out a better Act and more beneficial.

    Ene went on: “Suspension of hearing on the PIB doesn’t really mean the lawmakers don’t have zeal to pass the bill. PIB is necessary and everybody recognises it. What is happening is that democracy works when there is communication. Senate stepped it down for people to do a little bit more of talking on it. I think there is greater alignment across the industry today for the fact that PIB wouldn’t be considered as one omnibus bill but taken into realistic chunks that will allow it to move forward. I think there is a consensus for people to move forward.

    “This is important because we have to appreciate that today we are dealing with oil prices at $40 per barrel compared to $100 per barrel a few years ago. So the realities of today are now dawning on people. “Therefore, in looking at the PIB, you have to look at it vis-à-vis current realities and I think that is the cause of the delay in passage of the bill.”

    On low oil price, low production and renewed hostilities in the Niger Delta region, Eneh advised the government to diversify, engage in aggressive exploration for discovery of new oil fields and ways to develop the region.

    According to him, the impact of low oil price is being felt so much by Nigeria because of its over-dependence on oil revenues for survival. He said if the activities of people in various sectors are well coordinated, revenues from non-oil activities would be able to sustain the nation.

    “If the activities of people and cluster development are coordinated, the country will certainly move away from over-dependence on oil revenues. Manufacturing, agriculture and trade constitute over 60 per cent of our GDP. We can leverage expertise in the oil industry to be able to push through regional development, industrial parks and free trade zones developments that are emerging across the country in a coordinated manner.

    “Within the oil industry, secondary processing is important. The Niger Delta energy corridor is a concept that is targeted to transform the Niger Delta into a secondary processing zone where oil is not simply extracted and evacuated from the country but it goes through levels of processing. The energy corridor will capture over 40 per cent of crude oil value locally. When this project is actualised, the militancy in the Niger Delta will drastically reduce.

    “The oil industry exploration has to be continuous because we are taking something out of the ground without replacing it. Therefore, the day we start to cut down exploration is the day our reserves will be limited and at some time we will start to have a decline in our production. If that decline is not today, it will come in future.

    “This is the best time to do exploration.  When the oil price is low and prices of services are low. Therefore, this is the time to encourage exploration.

  • Reps to reopen debate on PIB

    Reps to reopen debate on PIB

    The House of Representatives is planning to reopen debate on the Petroleum Industry Bill (PIB) which was left unpassed by the 7th National Assembly.

    To this end, the House of Representatives is working with the Nigerian Law Reform Commission (NLRC) to commence debate on the need for the reform of the legal framework of the nation’s petroleum industry.

    The debate scheduled for between June 12 and 15 in Abuja, is intended to draw lessons from the failure of the attempts by both the last President Goodluck Jonathan and the 7th National Assembly to ensure the successful passage of Petroleum Industry Bill.

    This was made public yesterday in Abuja by the  Technical Assistant on Petroleum Industry Reform to the House of Representatives, Oracle Nwala.

    Nwala, a lawyer, said the lower legislative chamber was organising a national summit on petroleum industry reform to ensure “the passage of appropriate legal framework for the management and development of the petroleum industry of Nigeria”.

    He said the event which is to hold at the International Conference Centre between June 12 and 15 is part of the moves by the House of Representatives to revisit the process of petroleum industry reform rather than lament over the failure of the PIB.

    He said work had already commenced on the new PIB.

    He said, “The House of Representatives, rather than whinge, whine and whimper has decided to be proactive, to revisit the process of petroleum industry reform, and to work towards the successful enactment of laws that will regulate the Nigerian petroleum industry, in accordance with the rule of law, good governance, and due process; for the sustainable development of Nigerians and the total advancement of the Federal Republic of Nigeria.

    “It is the conviction of the House of Representatives and its leadership that the reform of the petroleum industry is a vital necessity, if Nigeria is to realise its God-given potential. For a country that depends on revenues from petroleum industry, there is no alternative to reform.

    “In keeping with the commitment of the House of Representatives to pass a robust legislation that will cater to the topical issues in the Nigerian Petroleum industry with a view to promoting global best practice, the House of Representatives has initiated work on a new Petroleum Industry Bill.”

     

  • Reps to reopen debate on PIB

    The House of Representatives is planning to reopen debate on the Petroleum Industry Bill (PIB) which was left behind by the 7th National Assembly.

    To this end, the House of Reps is working with the Nigerian Law Reform Commission (NLRC) to commence debate on the reform of the legal framework for the nation’s petroleum industry.

    The debate scheduled for between June 12 and 15 in Abuja, is intended to draw lessons from the failure of ex- President Goodluck Jonathan and the 7th National Assembly to ensure successful passage of the PIB.

    The Technical Assistant on Petroleum Industry Reform, House of Representatives, Oracle Nwala stated these on Monday in Abuja.

    Nwala, a lawyer, said the lower legislative chamber was organising a national summit on petroleum industry reform to ensure “the passage of appropriate legal framework for the management and development of the petroleum industry of Nigeria.”

    He said the event which will hold at the International Conference Centre between June 12 and 15 is part of moves by the House of Representatives to revisit the process of petroleum industry reform rather than lament over the failure of the PIB.

    He said work had already commenced on the new PIB.

  • ‘Executive delaying PIB’s passsage into law’

    ‘Executive delaying PIB’s passsage into law’

    The House of Reprsentatives yesterday lamented that the executive arm of government  was delaying the passage of the Petroleum Industry Bill (PIB) into law through its failure to transmit the document to the National Assembly.

    Chairman, House Committee on Media and Public Affairs, Abdulrasak Namdas, who spoke at the weekly briefing of House reporters, said since the government version of the PIB is not forthcoming, the House would look into the bill from a fresh perspective.

    He however,  praised the Federal Government’s decision on petrol pricing, saying it would stop the spate of diversion of  petroleum products to neighbouring countries.

    Namdas however urged a section of the organised labour and civil society organisations (CSOs) threatening strike action to “pursue other welfarist programmes and let the subsidy be taken away.”

    He said the palliative measures in the 2016 Appropriations Act would help to cushion the effects of downstream oil sector liberalisation.

    According to him, rather than have subsidy, “market forces should be allowed to influence price. Based on this premise, the House Committee will continue to engage labour.”

    In a similar vein, Minority Leader of the House, Hon. Leo Ogor said with the  subsidy removal, the PIB will promote transparency in the oil sector.

    Ogor who spoke withreporters noted that the passage of the PIB by the National Assembly will enhance transparency in the oil sector.

    According to him, with the decision to remove petrol subsidy, the National Assembly would need to consult extensively in the new PIB.

    The Green Chamber, he said, is yet to receive the PIB. What is before the House is a bill seeking the administrative restructuring of the Nigerian National Petroleum Corporation (NNPC).

    He said: “There is no way PIB would have solved the issue of fuel imports and consumption. We have made a lot of mistakes as a nation; we have wasted trillions of naira in subsidising what we shouldn’t have subsidised.

    “Subsidy in my opinion is funding the rich, therefore l will appeal to the government to come up with some form of palliatives.”

  • Reps ‘still awaiting’ PIB from Executive

    The House of Representatives on Thursday lamented the attitude of the Executive towards the transmission of the Petroleum Industry Bill (PIB) to the National Assembly.

    The Chairman, House Committee on Media and Public Affairs, Abdulrasak Namdas, while speaking at the weekly briefing of journalists, said since the government version of the PIB is not forthcoming from the executive, the House would look into the bill from a fresh perspective.

    He, however, praised the Federal Government’s decision to increase fuel pump price, saying it would stop diversion of petroleum products to neighbouring countries.

    Namdas urged a section of the organised labour and civil society organizations threatening strike to “pursue other welfare programmes and let the subsidy be taken away.”

    He said the palliative measures in the 2016 Budget would help to cushion the effects of the fuel price hike.

     

  • Debate on new PIB suffers setback in Senate

    Debate on new PIB suffers setback in Senate

    Spirited attempts to commence debate on the controversial new Petroleum Industry Bill (PIB) in the Senate failed Tuesday.

    Most Senators opposed the second reading of the bill on the grounds that copies of the bill was not distributed to them

    The senators kicked against second reading of the PIB, on grounds that the usual procedure where copies of bills meant to be presented for debate on the Senate floor, were always circulated to members ahead of time, was not adhered to.

    Senate President, Abubakar Bukola Saraki had already given the floor to the sponsor of the bill, Senator Omotayo Alasoadura (Ondo Central) to lead the debate but opposition mounted as the lawmakers shouted that they were yet to receive copies of the bill.

    Senate Minority Leader, Senator Godswill Akpabio, who led the protest, said that copies of the bill should have been circulated to all Senators ahead of formal debate to enable them make useful contributions.

    Akpabio insisted that the bill entitled “A bill for an Act to provide for governance and institutional framework for the Petroleum Industry and for other matters connected therewith, 2016” should not be treated with levity.

    He noted that since oil and gas remained the life wire of the country’s economy since independence, any bill aimed at revitalizing the sector should be given the importance it deserved.

    Akpabio said, “Mr President, I believe that we are discussing about the economy of Nigeria since 1960. The main stay of the economy of this country has been crude oil and therefore, the Petroleum Industry Bill is such an important bill that will affect people suffering in this country.

    “It will also affect the budget of the federal government that we are doing today.

    “It is not the kind of bill that we can stay here and gloss over and then allow somebody to do a lead debate without senators having the bill in their hands.

    “It is something we must study and come and make our own inputs, because we have to make sure that if that bill is properly done and then the president signs it into law, then it will help the economy of this country and it will also help to generate more income and enhance the living standards of Nigerians.

    “I think it is an exercise in futility for my brother to do a lead debate when the bill is not circulated to senators.”

    Saraki said that the bill was circulated last Thursday he however ruled that the debate be stood down till today to allow for the circulation of copies of the proposed legislation.

    He asked Alasoadura to ensure that copies of the bill were circulated.

    Senator Kabiru Marafa, Zamfara central, criticized the Senate for taking credit on its sponsorship.

    Senator Marafa who raised Point of Order noted that the bill was an Executive bill.

    He insisted that it was wrong for the Senate to present itself as the sponsor of the bill

    Marafa said, “I come under Order 76, which reads “there shall be three classes of bills, namely, Executive Bill, Members Bill and Private Bill.

    “As far as I can remember, the PIB was an executive bill, submitted to this chamber and as an executive bill, it was submitted wholly as one bill to be considered equally and thoroughly.

    ” To my greatest surprise the presenter here is telling us that he has separated the bill into parts and pieces to be considered and I don’t know where he drew that authority from, because the executive has already submitted one bill and not part and pieces.

    “So, I want to suggest that the presenter brings the bill as presented by the executive arm of government.”

    Senate President told Marafa that so far there was no bill on PIB from the executive before the Senate.

     

  • New PIB weak, wishy-washy – ERA

    The Executive Director, Environmental Right Action/Friends of the Earth Nigeria (ERA/foEN), Dr. Godwin Ojo, on Tuesday frowned at the new version of the Petroleum Industry Bill (PIB), describing it as weak and wishy-washy.

    Ojo said the new version of the PIB christened, Petroleum Industry Governance Bill (PIGB) lacked the capacity to address corporate impunity in the oil industry.

    Speaking in Yenagoa, Bayelsa State capital, during an Environmental Parliament on PIB 2016, Ojo said the promoters of the bill failed to learn from past experiences.

    He said ERA organised the one-day event to subject the PIB to expert-working-group review.

    He said the parliament was one in a series of engagements in environmental policy initiatives to give technical support and suggestions to lawmakers for people-oriented laws to be enacted in Nigeria.

    He said it was unfortunate that in the 7th session of the National Assembly, the bill was not passed because some lawmakers seemed to have been compromised and succumbed to cheap blackmail by the oil industry.

    He said some federal lawmakers became the mouthpiece of the oil companies which threatened to pull out of Nigeria’s oil and gas sector following their argument that it would be unviable with the passage of the old PIB version.

    He said the current failed to promote fundamental areas on environmental and livelihoods protection.

    According to him since 2008 when it was first introduced, the bill was designed to serve as a conflict resolution law to ensure that the multifaceted problems of the industry – inefficiency, corruption and environmental degradation- were curtailed.

    He said the bill was also to address the years of human rights violations and the clamour for environmental justice by the rural folks who were often the receivers of oil extraction impacts felt in their health, environment and livelihoods sources.

     

  • Senate begins work on new PIB

    Senate begins work on new PIB

    • To probe NNPC JV cash calls

    The Senate yesterday began legislative work on the controversial Petroleum Industry Bill (PIB).

    Rechristened Petroleum Industry and Governance Bill (PIGB), it passed first reading in the upper chamber yesterday.

    The PIB had been in the National Assembly since 2007 with several versions of the bill making the rounds.

    Senator Donald Tayo Alasoadura (APC, Ondo Central) introduced the Bill said to be  a product of harmonised work by both chambers of the National Assembly.

    Senate Ptresident, Abubakar Bukola Saraki, had at differenct fora promised to ensure the passage of the PIB.

    The Senate and House of Representatives were said to have recently harmonised a new draft of PIB and renamed it PIGB preparatory for presenting in the two chambers.

    The Senate said work on the Bill became necessary following what it called a prolonged silence by the Presidency on the bill and agitation for its passage by Nigerians.

    The seventh National Assembly failed to pass the bill due to stiff opposition from Northern lawmakers especially over the allocation of 10 per cent royalty to oil producing communities in the bill.

    The Northern lawmakers opposed the provision of host community fund in the bill and posited that oil producing Niger Delta region had received more than enough benefits with little or nothing to show for it.

    When the news broke about a new PIB, the Niger Deltans have continued to protest reported plan to remove the 10 per cent allocated to host communities in the former bill.

    Meanwhile the Senate yesterday mandated its Joint Senate Committee on Petroleum (Upstream and Downstream), Finance and Appropriation and Gas to carry out a comprehensive investigation of the joint venture (JV) cash calls by the Nigeria National Petroleum Corporation (NNPC).

    The upper chamber expressed concern over claims that the NNPC had been violating rules governing its JV cash call responsibility.