TOTAL E&P Nigeria Ltd says the company has articulated its thoughts and concerns on the recently passed Petroleum Industry Governance Bill (PIGB) and the rest of the proposed bills in readiness for presentation during dialogue and legislative public hearings when it’s time to do so.
This position of the company regarding the PIGB was made known by the Deputy Managing Director, Deep Water District, Mr. Ahmadu – Kida Musa while delivering his speech as the Chairman at the 2018 annual conference of the National Association of Energy Correspondents (NAEC) held at the Eko Hotels & Suites, Victoria Island, Lagos Thursday August 16. Speaking based on the theme of this years’ event which is PIGB: EMERGING ISSUES AND CONCERNS, he stated this was done through their umbrella organization – Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce and Industry, a position he believes is the best way to go about making sound impute in the PIGB first of the four bills to be passed which is focused on the key governing institutions in Nigeria’s Oil and Gas industry.
It would be recalled that the initial Petroleum Industry Bill (PIB) was first introduced to the National Assembly in 2008 as an Executive Bill to update the entire Oil and Gas laws existing at the time. However efforts to pass the bill in the past were unsuccessful, until the current assembly took a larger look at the document and identified the bogus packaging of the PIB as a single legal instrument as a major hindrance to its passage and therefore took the decision to present a number of smaller, more defined bills to address various sectors of the industry.
He commended the Energy correspondents for their role over the years in trying to keep the country’s energy sector transparent and accountable through their coverage of the sector,stressing the importance of a continued healthy media relationship to the entire industry. Musa also used the opportunity to draw attention toTOTALEginaDeepwater development project nearing completion, which will add 200,000 barrels per day by the last quarter of this year. It would be recalled that the Egina FPSO arrived at quayside of the SHI-MCI Yard on LADOL Island, Lagos in January of this year. The integration of the topsides of the Egina FPSO has been completed and will soon set sail away to the field for hook up operation.
By Clement Olumba
PIGB seeks to create better investment opportunities – MaikantiBaru
The clear demarcation of the Regulatory, Policy and Commercial roles of public sector agencies and allocation of roles to respective agencies properly positioned to perform them in the Petroleum Industry Bill (PIB), has been described as a major step forward and a critical fulcrum of the bill by the Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Dr. MaikantiKachallaBaru.
He stated this while delivering a keynote address at the annual conference of the National Association of Energy Correspondents (NAEC) held at the Eko Hotels & Suites, Victoria Island Lagos. Based on theme of this years’ conference PIGB: Emerging Issues and Concerns, Dr. Baruwho was the lead speaker ably represented by the Deputy General Manager NAPIMS, Mr. Rowland Ewubaresaid that the PIGB “seeks to create an avenue for better investment opportunities, make the petroleum sector more transparent and ensure better accountability of revenue derived from the nation’s vast Oil & Gas resources by clearly delineating the functions and role of the three key institutions (policy, commercial and regulatory)”. He went further to break down to participants some of what the PIGB says – stating that the bill in the case of the NNPC requires the Minister to within six months after its enactment to take necessary steps under the Companies and Allied matters Act to incorporate the two entities, the Nigerian Petroleum Assets Management Company (NPAMC) and the Nigeria Petroleum Company (NPC) as companies limited by shares which will be vested with certain liabilities and assets of the NNPC.
The NPC shall be an integrated Oil & Gas company operating as a fully commercial entity across the value chain. it shall also be responsible for all assets currently held by the NNPC with the exception of the PSCs. It shall be registered under Companies and Allied Matters Act as a limited liability company, the initial shares shall be held by the Ministry of Petroleum Incorporated (40%), the Ministry of Finance Incorporated (40%) and the Bureau of Public Enterprises (20%). Within five and 10 years from incorporation, 10% and an additional 30% respectively of the shares of the company shall be floated on the Nigerian Stock Exchange.
A major prospect of the bill is the ability of the NPC and NPAMC to recover its cost of operations before crediting the Federation Account against the current situation where revenues flow first from the Federation Account and then budgeted for NNPC. This will prevent the companies from being subjected to delayed budgetary process and approvals adding that this was the reason for the significant cash call arrears build up. These and other significant changes were highlighted by MaikantiBaru.
However significant these changes are they surely would come with challenges and in anticipation of such, the GMD stated that “the split of NNPC into two entities if not properly communicated to staff of the NNPC is bound to generate some tension between the unions” and therefore called for concerted efforts to tackle them when the time comes and suggested that engagement with staff and consultation with individuals and establishment with memory of how the issue of staff movement was handled when the Department of Petroleum Resources (DPR) was expunged from the NNPCis necessary.
He concluded by calling on the energy correspondents to continue its role of shaping the perception and being the link between the government, agencies and the public.