Minister of State for Petroleum Resources, Mr. Timipre Sylva, has declared that none passage of the Petroleum Industry Bill, PIB since 2007 for required regulation of the oil industry has discouraged investments in the sector with attendant stagnation of the nation’s oil reserves at 37.5billion barrels.
This is even as the President of the Senate, Dr. Ahmad Lawan, vowed that the PIB would be passed by the 9th National Assembly next year.
Sylva, who spoke at a public hearing session organised by the Senate’s Joint Committees on Petroleum (Upstream), Finance, Gas, and Judiciary on Deep Offshore and Inland Basing Sharing Contract (Amendment) Bill 2019, noted that non passage of the bill had been driving away investors from the oil sector.
He explained that while the oil reserves increased from 22billion barrels in 1999 to 37billion barrels in 2007, only 500million barrels were added to it between 2007 and 2019 due to lack of additional investments arising from none passage of the PIB.
“Perhaps as a result of some level of regulations , from 1999 to 2007, we grew our oil reserves from 22billion barrels to 37billion barrels which however got stagnated between then and now (2019) with 37.5billion barrels , meaning that for 12 years , only 500million barrels were added to the reserves .
“The reason for this is very obvious, lack of required regulatory laws for the sector which has been driving away investors”, he said.
Sylva however commended the Senate for setting machinery in motion towards considering the PIB very soon in growing the sector.
“The public hearing being held today on Deep Offshore and Inland Basin Production Sharing Contract (Amendment) Bill 2019 by the relevant Senate Committees, will no doubt serve as precursor for consideration and passage of PIB in no distant time “, he added.
Earlier, the senate president while declaring open the session, said the bill which seems jinxed since 2007 when it was first introduced during the 6th National Assembly to the 8th National Assembly when it was passed but not assented to, by the President ; will see the light of the day during the current Assembly .
“Collaborative approach between the executive and the legislature is being considered in getting the PIB passed and assented to, this time around because the bill is highly needed to attract investors into the sector and widen our oil reserve base,” he said.
On the Deep Offshore and Inland Basin Bill, Lawan said the bill is a done deal, being a required precursor for the Petroleum Industry Bill.
In his opening remarks, chairman of the Senate Committee on Petroleum (Upstream), Senator Albert Bassey Akpan (PDP Akwa Ibom North East), said the need to put in place required legislations on Production Sharing Contracts; PSC necessitated the motion that gave birth to the bill for a win – win arrangement for all stakeholders.
Aside the Minister of State for Petroleum, all the critical stakeholders in the oil and gas sectors from the Group Managing Director of the Nigerian National Petroleum Corporation ( NNPC) , Kele Kyari to all the Managing Directors of oil firms , were at the public hearing which later held being closed door.
It would be recalled that the Senate had penultimate Wednesday, uncovered a whooping loss of N7trillion ( $21billion) to international oil firms within the last 26 years on none implementation of oil PSC, it had with the affected oil firms since January 1993.
The loss of the country in the sharing contract with frontline oil firms like Chevron, Exxon Mobil, Shell, South Atlantic Petroleum etc, came to front burner during debate on a motion sponsored to that effect by Senator Ifeanyi Ubah (YPP Anambra South).
Senator Ubah in the motion co – sponsored by 27 other Senators, informed the Senate that salient provisions of the contractual agreements between Nigeria and the affected oil firms, have not been adhered to, by parties concerned which according to him, and had bled the nation’s economy to the tune of $21billion, equivalent of N7trillion.
The N7trillion loss according to him, were revenues that supposed to have accrued into the federation account from shares Nigeria supposed to have gotten from the oil firms anytime oil price rises above $20 per barrel as provided for in section 16 of the PSC.
He added that the required periodic reviews that are supposed to be done on the Act in 2008, 2013 and 2018 as provided for in the Act, were not carried out with attendant further loses on the part of Nigerian government .
Consequently, an amendment bill seeking for penalties against the fraud was tabled and passed for first reading on the floor of the Senate on Thursday last week.
Passing the bill titled: “Deep Offshore and Inland Basin Production Sharing Contract (Amendment) Bill 2019” for second reading Tuesday, the Senate introduced sections 17 and 18 into it for appropriate penalties against violation of section 16 of the Act.
- Naira Notes: Supreme Court bans FG, CBN in a temporary ruling
- Wike donates N70million to families of three slain police officers
- TUC calls on FG to solve naira, fuel crises
- Petrol scarcity to end in one week– NNPC
- Lagos PDP mourns as deputy governorship candidate loses mum
- Plateau Govt hands over 32 missionary schools to original owners
- AMAZING…. Ohanaeze Ndigbo finally reveals candidates to support during elections
- Why I’m supporting Tinubu, AbdulRazaq— Latinwo
- INEC has no business with MC Olumo, but park managers– REC
- Protesters shut Benin’s CBN branch over Naira scarcity