PIB Will Promote Active Participation Of Nigerians In Oil Sector-Experts

As stakeholders in the Nigeria Oil and Gas sector await the passage of the Petroleum Industry Bill, experts have said the bill among other things, should seek to create an enabling environment that encourages active participation of Nigerians in the sector.

In the Bill which was reported to have been submitted to the National Assembly, about 12 regulations relating to the oil and gas sector would be repealed from the effective date that it becomes an Act.

The Bill is expected to repeal Section 31 of the Oil Pipelines Act, CAP 07 Laws of the Federation of Nigeria 2004; Nigerian National Petroleum Corporation Act 1977 No, 33 CAP N123 Laws of the Federation of Nigeria as amended, when NNPC ceases to exist pursuant to section 54(3) 83(3) of this Act;

Others include the Associated Gas Reinjection Act, 1979 CAP A25 Laws of the Federation 2004, and its Amendments; Hydrocarbon Oil Refineries Act No. 17 of 1965, CAP H5 Laws of the Federation of Nigeria 2004; Motor Spirits (Returns) Act, CAP M20 Laws of the Federation of Nigeria 2004.

Also, the Nigerian National Petroleum Corporation (Projects) Act No. 94 of 1993, CAP N124 Laws of the Federation of Nigeria 2004; Petroleum Products Pricing Regulatory Agency (Establishment) Act 2003; and Petroleum Equalisation Fund (Management Board etc.) Act No. 9 of 1975, CAP P11 Laws of the Federation of Nigeria 2004 are expected to be repealed by the Bill.

The PIB would also repeal Section 7, Oil Terminal Dues Act 1965; Petroleum Equalisation Fund (Management Board, etc.) Act, 1975; Petroleum Profit Tax Act Cap P13 LFN 2004, and Deep Offshore and Inland Basin Production Sharing Contract Act 2019, as amended.

Speaking with THE WHISTLER, experts said that following the recent development in the oil and gas sector, the bill should be made to deepen local ownership and participation in the sector.

The Executive Director, Civil Society Legislative Advocacy Centre, Auwal Musa Rafsanjani, said that the Bill apart from seeking effective regulation in the sector should also promote a competitive market.

He said, “The Petroleum Industry Bill is expected to improve our oil production under competitive terms as well as ensure accountability, and transparency in the sector.

“The National Assembly has not done anything concerning the Bill, and as they prepare to look into the Bill, they should ensure that the items of the bill are in support of national interest especially the private sector.”

Chima Obi, Oil and Gas analyst, in a chat with this Newspaper said that there is need to re-jig the petroleum industry framework in order to support the gas penetration drive of the government and strengthen local participation in the sector.

He said, ‘The proposed PIB should be structured in a way that will boost the participation of Nigerians in the oil and gas sector.

“This will further help us to build a stronger sector, where everyone takes ownership and responsibility of the growth of the sector and National economy at large.”

He explained that local participation has become more imperative considering the impact of the global COVID-19 pandemic on the activities of the sector, adding that there is need to promote development in the domestic market.

According to him, before the Nigeria Oil and Gas Industry Content Development Act 2010, Nigerians were mostly spectators in the industry.

But the Minister of State for Petroleum Resources, Timipre Sylva, said that the proposed PIB would provide a wide variety of features to ensure that natural gas makes the optimal contribution to the industry.

Among other developments that will be introduced by the Bill, the Minister explained that in bringing transformation to the industry, the Bill would introduce the development of the mainstream, which is the pipeline sector between the upstream and the downstream.

“The Petroleum Industry Bill will provide a framework for sustained and increased petroleum industry activities in terms of developing gas for domestic market.

“The Petroleum Equalization Fund and the Petroleum Products Pricing and Regulatory Agency will not exist in the same form that they exist today.

“The host community has the best deal but the details of the bill would be unfolded on the floor of the Senate,” he added.