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Tag: PIB

  • Reps pass PIB, 10 reports, others on last day

    Reps pass PIB, 10 reports, others on last day

    THE Petroleum Industry Bill (PIB) has been passed by the House of Representatives on the last day of the Seventh House of Representatives.

    After the passage of 11 reports and 14 of 15 bills sent for concurrence by the Senate, the House adjourned sine die (indefinitely), barring any unforeseen circumstance.

    The Oil and Gas Export Free Zone  Act (Amendment) Bill, 2015 passed by the Senate was deleted from the 15 bills sent for concurrence.

    The House said there was a need for further scrutiny of the Bill due to its importance on the nation’s economy.

    The others scaled second and third reading following the suspension of relevant House Rules.

    Taking a cue from the backlash that followed the passage of 46 Bills within minutes by the Senate the previous day, Acting Speaker Emeka Ihedioha said the House must go through the right legislative procedure to pass the bills.

    According to him, it was lack of understanding of legislative procedures that resulted in the editorial headlines that greeted Senates passage of the Bills.

    He said the Senate was in order but that the House would take its time to ensure that relevant procedures were adhered to.

    “It is important the people understand us and that is why we need to explain how we arrived at this juncture.

    “What the House is going to do is not unusual, but if any member has a reservation about a particular bill sent for concurrence from the Senate, it is to raise it so that we defer it and pass the rest,” he said.

    Chairman, House Committee on Rules and Business Albert Sam-Tsokwa said time was not on the side of House but that the House is empowered to suspend relevant rules to address such issue when it occurs.

    The bills include the Nigerian Army Institute of Technology and Environmental Studies (Establishment) Bill, National Social Welfare Commission (Establishment) Bill, Labour Safety and Health Bill, Acts Authentication Act, 1962 (Amendment) Bill and Nigerian Football Association Act, Cap. N110, LFN, 2004 (Repeal and Re-enactment) Bill.

    Others are Corporate Manslaughter Bill, 2015; Animal Health and Husbandry Technologists (Registration) Bill, 2015; Criminal Justice (Release from custody) (Special provisions) Amendment Bill, 2015; Border Communities Development Agency (Amendment) Bill, 2015; Hydro-Electric Power Producing Areas Development Commission (Amendment) Bill, 2015; Nigerian Automotive Industry Development Plan (Fiscal Incentives, Assurances and Guarantees) Bill, 2015; Engineers (Registration, etc) Amendment Bill, 2015 and Proceeds of Crime Bill, 2015.

    The bills scaled second and third readings successfully, except one that was deleted.

    The 422-clause PIB was also passed after the House ad hoc panel had realigned contentious clauses that had caused several suspensions of the consideration of the bill.

    However, no lawmaker opposed the solution found to the contentious clauses by the ad hoc panel as consideration continued from clause 347 to 422.

    On the passage of the PIB, Ihedioha said: “We took deliberate steps in passing the third reading of nine bills. These were done painstakingly.

    “On PIB, we took our time with an ad hoc committee that was in all the geo-political zones.

    “These actions were taken because we believe we have one Nigeria.

    “Now, the bulk of the job is left for the Senate, but if they cannot deal with it, we believe that the 8th Assembly would know the extent of work that has gone into it.

    Ten other reports were also considered and passed.

    At the end of the day’s business, Ihedioha asked the House Leader, Mulikat Akande-Adeola to move for the adjournment of plenary sine die  (indefinitely) barring any unforeseen circumstance.

    He said the life of the 7th House would terminate on Saturday, June 6, 2015

  • Reps put aside PIB over contentious clauses

    Reps put aside PIB over contentious clauses

    • Refuse to clear Alison- Madueke over shady oil deals

    With just a few days to the end of the 7th Assembly, members of the House of Representatives yesterday suspended further consideration of the Petroleum Industry Bill (PIB) due to the sectional line the consideration of the report appeared  to have taken.

    Chairman, Committee of the Whole House, Deputy Speaker Emeka Ihedioha halted further consideration of the report when he discovered that the argument over some contentious clauses has taken on regional dimension.

    He mandated the ad hoc Committee to do further work on the contentious clauses to enable the House make informed decision when consecration resumes.

    Before then, members from the South and North were at variance over what percentage of national fund should go to certain projects in their areas.

    He said: “What  we  have seen on the floor is a political and emotional solution being put forward by members but what we need is a technical solution.

    “What we must realise is that the import of the PIB is very critical to every Nigerians because the National Assembly has been accused at various times for not passing the Bill.

    “So, we have to take our time to pass it and pass a bill that can stand the test of time. The committee should go back and involve technical people so that whatever we support at the end of the day will be in favour of Nigeria.

    “You have to come up with figures that can be defended by the House. If we go into voting now, it will only be political voting but we have to be technically guided to be able to do the best for Nigeria.”

    Also yesterday, members kicked against the consideration of a report clearing the former Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke of any wrong doing in an alleged shady sale of seven oil blocs.

    The report which was put together by an ad hoc committee headed by the Chairman of the House Committee on Petroleum (Upstream), Muraino Ajibola cleared Alison-Madueke of any misdeed in the transaction.

    Specifically, the ad hoc committee was to investigate the alleged shady deal involving the Mrs. Alison-Madueke, the Nigerian National Petroleum Corporation ( NNPC), the Nigerian Petroleum Development Company ( SPDC), Atlantic Energy Drilling Concept Ltd, Septa Energy Ltd, and any other entity with respect to the farm-out or allocation of a oil mining leases ( OMLs) 4, 26, 30, 34, 38, 41 and 42.

    The contentious report of the ad hoc committee was laid before the House  on the 13th of February last year and brought up for consideration yesterday. Though Muraino, the chairman of the committee was absent, the Acting Speaker,  Ihedioha brought the report forward for consideration by members.

    But members who were angry having read through the recommendations of the report refused to allow it be considered.

    Of the three recommendations, the one that irked members most was “that a clear bill of health be given to all parties involved in the transaction as the entire transaction conformed to all applicable laws.

  • Reps put aside PIB over contentious clauses

    With just a few days  to the end of the 7th Assembly, members of the House of Representatives yesterday suspended further consideration of the Petroleum Industry Bill (PIB) due to the sectional line the consideration of the report appeared  to have taken.

    Chairman, Committee of the Whole House, Deputy Speaker Emeka Ihedioha halted further consideration of the report when he discovered that the argument over some contentious clauses has taken on regional dimension.

    He mandated the ad hoc Committee to do further work on the contentious clauses to enable the House make informed decision when consecration resumes.

    Before then, members from the South and North were at variance over what percentage of national fund should go to certain projects in their areas.

    He said: “What  we  have seen on the floor is a political and emotional solution being put forward by members but what we need is a technical solution.

    “What we must realise is that the import of the PIB is very critical to every Nigerians because the National Assembly has been accused at various times for not passing the Bill.

    “So, we have to take our time to pass it and pass a bill that can stand the test of time. The committee should go back and involve technical people so that whatever we support at the end of the day will be in favour of Nigeria.

    “You have to come up with figures that can be defended by the House. If we go into voting now, it will only be political voting but we have to be technically guided to be able to do the best for Nigeria.”

    Also yesterday, members kicked against the consideration of a report clearing the former Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke of any wrong doing in an alleged shady sale of seven oil blocs.

    The report which was put together by an ad hoc committee headed by the Chairman of the House Committee on Petroleum (Upstream), Muraino Ajibola cleared Alison-Madueke of any misdeed in the transaction.

    Specifically, the ad hoc committee was to investigate the alleged shady deal involving the Mrs. Alison-Madueke, the Nigerian National Petroleum Corporation ( NNPC), the Nigerian Petroleum Development Company ( SPDC), Atlantic Energy Drilling Concept Ltd, Septa Energy Ltd, and any other entity with respect to the farm-out or allocation of a oil mining leases ( OMLs) 4, 26, 30, 34, 38, 41 and 42.

    The contentious report of the ad hoc committee was laid before the House  on the 13th of February last year and brought up for consideration yesterday. Though Muraino, the chairman of the committee was absent, the Acting Speaker,  Ihedioha brought the report forward for consideration by members.

    But members who were angry having read through the recommendations of the report refused to allow it be considered.

    Of the three recommendations, the one that irked members most was “that a clear bill of health be given to all parties involved in the transaction as the entire transaction conformed to all applicable laws.

    The other two recommendations read: “ that operators in the oil industry should deliberately encourage openness/ transparency in their operations.

    “That companies involved in the petroleum industry should be required to ensure timely dissemination of information regarding their transactions, especially those involving government agencies and corporations as this will forestall suspicion and sentiments of having been cheated that are always bound to arise in circumstances where a section of the relevant stakeholders in the industry are left in doubt as to transactions in the industry.”

     

  • Reps shut down PIB over contentious clauses

    Reps shut down PIB over contentious clauses

    With just a few days to the end of the 7th Assembly, members of the House of Representatives on Tuesday suspended further consideration of the Petroleum Industry Bill (PIB) due to the sectional line the consideration of the report appeared to take.

    The Chairman Committee of the Whole House, Emeka Ihedioha, halted further consideration of the report when he discovered that argument over some contentious clauses has taken on regional dimension.

    Ihedioha, who is also the Deputy Speaker of the House, mandated the ad hoc Committee to do further work on the contentious clauses to enable the House make informed decision when consecration resumes.

    Before then, members from the South and North were at variance over what percentage of national fund should go to certain projects in their areas.

    He said: “What we have seen on the floor is a political and emotional solution being put forward by members, but what we need is a technical solution.

    “What we must realize is that the import of the PIB is very critical to Nigerians because the National Assembly has been accused at various times for not passing the Bill.

    “So, we have to take our time to pass it and pass a bill that can stand the text of time. The committee should go back and involved technical people so that whatever we support at the end of the day will be in favour of Nigeria.

    “You have to come up with figures that can be defended by the House. If we go into voting now, it will only be political voting, but we have to be technically guided to be able to do the best for Nigeria.”

    Also on Tuesday, members of the House kicked against the consideration of a report clearing the former Minister of Petroleum Resources, Mrs. Diezani Alison Madueke, of any wrong doing in an alleged shady sale of seven oil blocs.

    The report which was put together by an ad hoc committee headed by the Chairman of the House Committee on Petroleum, Upstream, Muraino Ajibola cleared Alison- Madueke of any misdeed in the transaction.

     

  • Reps suspend PIB report over contentious clause

    Reps suspend PIB report over contentious clause

    Division among members of the House of Representatives over the provison of Clause 209 of the Petroleum Industry Bill (PIB) has led to the suspension of the consideration  of the report of the Ad-hoc Committee on PIB.

    The lawmakers were at variance over how much should accrue to the country from exploratory licences issued to prospective companies in the petroleum industry.

    The arguement degenerated into a North – South issue after the contentious clause was found missing in the report.

    This led to the suspension of the consideration of the report till a Committee saddled with the responsibility of examining the grey areas reports back to the House next week.

    The observation of Kyari Gujbahu of the All Progressives Congress (APC), Borno, centered on the clause that deals with holders of exploratory licence to prospective operators in the industry and the monetary benefit therein.

    According to him, as contained in the draft report, revenue from activities of oil companies to be used for the take off of River Basins exploratory activities was pegged at $4 per barrel of gas and 20 cents for a barrel of crude.

    He said: “In the draft report which was referred for final compilation by committee, the sharing formula between government and oil companies for the development of River Basins across the country was $4 per barrel.

    “I now wonder why that has disappeared from this clause as contained in this report.”

    Abdurahman Terab (APC, Borno) supported him, saying, “This suggestion is not a new thing in play in countries where there is oil. It’s been in use in Chad, Niger and even Ghana.

    “This fund is not meant to develop the areas where the Basins are located but meant for the development of the Basins for the purpose of exploration of resources therein in furtherance of the nation’s economic growth”.

    On the other hand, Sokonte Davies (APC, Rivers) disagreed noting that it is impossible to peg it at $4 per barrel as it would have been too much to be used as a take off fund.

    “Even the 20 cent per barrel is a lot of money that can be used to kick start any exploration activity anywhere.

    “If we must do it, let’s leave it at 20 cents per barrel of gas and 2 cents per barrel of crude”.

     

  • Ihedioha insists on Wednesday for PIB debate

    Ihedioha insists on Wednesday for PIB debate

    The Deputy Speaker of the House of Representatives, Emeka Ihedioha, has said debate on the Petroleum Industry Bill (PIB) must commence Wednesday.

    Iheadioha, who presided over the House plenary Tuesday, urged his colleagues to prepare for clause-by-clause consideration of the bill.

    His insistence stemmed from complaints by some lawmakers who claimed they were not in possession document.

    There were fears that the Bill which has suffered several delays may not passed before the 7th Assembly completes its tenure next month.

    Ihedioha reminded his colleagues that announcement on the PIB debate was made last to enable members pick up their copies.

     

     

  • Delayed PIB passage derails foreign investments 

    Delayed PIB passage derails foreign investments 

    The Rivers State Chairman of Trade Union Congress of Nigeria (TUC), Comrade Chika Onuegbu has warned government and politicians to stop politicising the passage of the Petroleum Industry Bill (PIB) into law. To him, the delay in its passage has derailed foreign investment in the sector  that accounts for over 90 per cent of the nation’s foreign exchange earnings.

    Onuegbu, who spoke at a media briefing in Lagos, noted that investors have continued to adopt  wait-and-see attitude, refraining from making any new investment pending the passage of the bill into law.

    He said: “The non-passage of the PIB into law has derailed foreign investment in 2014 in the sector that accounts for over 90 per cent of the nation’s foreign exchange earnings.

    “The irony of the delayed exercise was when President Goodluck Jonathan administration was advised to re-start the whole process over again when the administration in January 2012 set up the  Special PIB Task Force led by Senator Udo Udoma to work with relevant government bodies to produce a new version of the PIB for presentation to the National Assembly.”

    According to Onuegbu, the dangers in the current dispensation is that Nigeria, therefore, cannot afford the luxury of time, while politicians indulge in unnecessary bickering over such an important bill in a sector that is the main stay of the economy accounting for over 90 per cent of foreign exchange earnings, about 40 per cent of the Gross Domestic Products (GDP) and 80 per cent of government revenue.

    The labour leader, who noted that the PIB represents a great opportunity for Nigeria to ensure a solid foundation for the future of oil and gas operations in the country, added that the petroleum resource, which Nigeria is endowed, should work for and benefit Nigerians and not a few individuals.

  • Finance, PIB, threat to oil reserves, production targets

    Finance, PIB, threat to oil reserves, production targets

    The Federal Government has said that the challenges facing the oil and gas sector, including dwindling revenue caused by plunge in oil price, and the non-passage of the Petroleum Industry Bill (PIB), are threatening its aspirations of growing oil reserves to 40 billion barrels and attaining four million barrels per day production by 2020.

    The Minister of Petroleum Resources, Mrs  Diezani Alison-Madueke, stated this at the ongoing Nigeria Oil and Gas Conference in  Abuja. Alison-Madueke who was represented by the Group Managing Director, Nigerian National Petroleum Corporation (NNPC) Dr. Joseph Dahwa, said that reserves and production targets may be a mirage if these issues are not urgently addressed.

    She appealed to the multinational oil firms and the local players to brace up for the imminent challenges and device strategies of raising funds for project execution adding that the conference is apt now considering current challenges in the global energy sector, which affects countries, companies and consumers alike.

    She quoted Wood Mackenzie that relative to 2014, a total of $120 billion (24 per cent) has been cut from the 2015 upstream budgets of some 116 companies, which can go up to as much as 40 per cent.

    Alison-Madueke noted that the persisting drop in crude oil prices has forced companies globally to slash capital spending in 2015, which is also taking its toll on Nigerian petroleum business. “Persistent depressed oil prices may limit industry scope to maneuver in growing long term production and reaching the target of four million barrels of oil per day,” she stated.

    The minister explained that under a sustained low oil price, the industry must challenge itself to raise funding for projects in order to meet these targets, which she reckons, requires radical changes in the cost environment, improved contracts and project management and innovative financing mechanism.

  • PIB: President, Petroleum Minister to lose powers

    PIB: President, Petroleum Minister to lose powers

    • Reps to pass bill on resumption from break

    • Why 2015 budget was not passed

    If the provisions of the Petroleum Industry Bill (PIB), as prepared by the House of Representatives are adopted and passed into law, then the country’s President would no longer enjoy the discretionary power to award oil blocks.

    Also, the Minister of Petroleum Resources would also lose his control over agencies and departments under the Ministry, as the power to recommend the Chief Executives of the agencies to the President would have been stripped off the minister.

    However Nigerians are to enjoy more say in the running of the Nigerian National Petroleum Corruption  (NNPC) and the Nigerian Gas Company  or their successors as a large part of their shares are be sold to Nigerians through public offers at the Nigerian Stock Exchange.

    These, among others, are contained in the PIB report  on the floor of the House in Abuja, yesterday. The Chairman, Ad hoc Committee on PIB, Ishaka Bawa, laid the report at plenary. The report has not been considered or adopted by the House.

    Bawa, while presenting the executive summary of the report to the press after plenary, said it took the Committee that was inaugurated on November 15, 2012 over two years to complete its work.

    He said the 23-member Committee took cognisance of the technicalities of the sector and the lasting effects the recommendations in the bill are likely to have on Nigerians and stakeholders in the oil and gas industry.

    The objectives of the bill, according to him, are to create a conducive business environment for petroleum operations, enhance exploration and exploitation of petroleum in Nigeria for the benefit of Nigerians.

    He said: “The objectives of the bill amongst others are to optimise domestic gas supplies, particularly for power generation and industrial development as well as establish commercially oriented and profit driven oil and gas entities.’’

    It also aims to “deregulate and liberalise the downstream petroleum sector  in addition to establish a progressive fiscal framework that encourages further investment in the petroleum industry while optimising revenue accruing to the government”.

    He said the Committee scrutinised the 363 sections and anexure in the original bill and made some amendments and recommendations.

    The Committee recommended that the discretionary powers of the President to grant petroleum licences and leases as contained in Section 191 of the original bill is completely removed.

    In its place, the Committee introduced competitive bidding for the award of such license and leases.

    He said: “The rationale behind this ammendment is simply to avoid the practice whereby power for the award of oil blocks was discretionary.

    “Whereas the Committee has retained the conventional powers of the Minister under Section 6 of the bill, the powers conferred on the Minister over the control of newly established agencies in the petroleum industry appear to be enormous and capable of undermining the independence of the regulatory agencies.

    “Therefore, the Committee in its wisdom has recommended the removal of powers given to the Minister either to serve as Chairman or to recommend to the President the appointment of Chairman of the Boards of such agencies.”

     

  • Reps threaten showdown over PIB

    Reps threaten showdown over PIB

    • Claim report is shrouded in secrecy

    In what looks like a desperate attempt to save face, the House of Representatives’ Adhoc Committee on the Petroleum Industry Bill (PIB) is set to lay the report of the contentious PIB on the floor of the House today.

    The Report, which the House Spokesman, Mohammed Zakari claimed was ready in a briefing on 16th October 2014, is being laid today as the House prepares to proceed on break for the forthcoming general elections.

    But the laying of the Report is likely to cause more problems than it will solve as members are angry that the members of the ad hoc committee is proposing laying a report that has not been sighted by House members prior to the laying.

    The Report, which emanated from a technical committee is already causing heated argument between members of the Adhoc committee headed by Mohammed Bawa and members of the House.

    A meeting meant to hold yesterday became a subject of controversy as members claim they went to the venue in the New Building extension numerous times and met no one. The meeting was meant to discuss issues in the report, especially the recommendations.

    But a consultant of the adhoc committee claimed that the report had been distributed three months ago to the offices of members. However, members insist they have not seen any report and that any attempt to railroad them into accepting a predetermined output from anyone would be met with stiff opposition on the floor.

    The irate members wanted to know how the report was generated, especially as members had no input; but were told that the report emanated “from the technical committee.”

    The explanation did not go down well with a member, who is also the chairman of a committee. “What technical committee? I have been treating issues that are in the PIB for the past three years in my committee, I should have an input into the report. I have been to the venue of this supposed meeting numerous times, there was no one there,” he snapped.

    Another member claimed that while on his way to the meeting, he was told that the PIB meeting had ended.

    “To me, the whole thing is looking to be a fraud because there are other Committees that must have one or two input in the report.

    “For instance, issues of environment, climate change are key features of this Bill and to have cut out these critical Committees is questioning the credibility of the report.

    “I can assure you that a big surprise would be waiting for them should they try to lay the report tomorrow (today) because none of those critical Committee were carried along in the preparation of the report.

    “How is it possible that members that were not consulted are expected to vote and hurriedly pass the report on the floor. How can you meaningfully contribute to the consideration of the report?”

    Recall that because of the importance attached to the bill, regional public hearing were held for the PIB in which all the geo- political zones in the country made inputs.

    The delay in the presentation of the Mohammed Bawa- led ad hoc committee’ report has been a subject of debate and great consternation amongst Nigerians who are fast losing hope on the passage of the bill before the expiration of the 7th Assembly.

    The report has also been tainted by a PIB cash-for-passage allegation which the House has debunked.