The PIB Public Hearings held on the 25th & 26th of January, 2021 at the Senate and the 27th & 28th at the House of Representatives. Despite initial concerns about COVID-19, both Hearings were well attended by OPTS stakeholders.
OPTS made a strong showing with IOC MDs either present or represented. The OPTS Chairman’s presentations at the Hearings was supported by each company MD present. The messaging on PIB was well coordinated from both indigenous and international IOCs with the collaboration with Independent Petroleum Producers Group (IPPG).
Key takeaways from the Public Hearings were:
- The National Assembly (NASS) is eager and determined to pass the PIB by May 2021.
- There is general acceptance that uncertainty and lack of competitiveness have stalled investment in Nigeria’s O&G industry
- Therefore PIB has to be competitive in order to attract investment
- There appears to be more willingness for further engagement
- Several stakeholders’ messages were in alignment with OPTS positions
- Several host community stakeholders pushing for representation on the board and administration of the HC trust fund, with some suggesting 5%-10% of Operating cost or revenue as the levy
- Opportunity for further engagements with National Assembly and FGN teams remain.
OPTS engagements with stakeholders continues in earnest, both at the Executive and Legislative arms of Government.
During the week of the PIB Hearings, OPTS leadership also paid a courtesy visit to the Senate President. OPTS was well received with the Chairman speaking on OPTS’ position on the PIB. President of the Senate, Ahmad Lawan while receiving a delegation of OPTS advocated for a reduction in the cost of crude oil production. He said “The cost of production in Nigeria is a major concern in the oil industry, my colleagues in the committees that are oil and gas related know better. He added that “The time has come for us to ensure that the cost of production is beaten down to a more meaningful and profitable production cost. While emphasising the importance of the PIB towards advancing Nigeria’s economy, he assured OPTS that the Senate would accommodate the interest of international investors in the Bill. He, also decried the low inflow of business investors in Nigeria, attributing it to absence of a legal framework which the PIB sought to address.
The OPTS Chairman, said the visit was to engage the National Assembly on areas to modify in the PIB to ensure its success when signed into law. He said, “On behalf of all of the industry and my colleagues, I want to say that we duly support the government’s effort to drive through the Petroleum Industry Bill. “We think it is really important that there’s an updated framework for the industry. “In our view, we are looking for something that will contribute to Nigeria, which will bring investment to the country and growth to the economy, and obviously jobs to the Nigerian people. “We are looking for something that will protect our existing investments, and also unlock opportunities so we can further grow our businesses and production. He concluded by saying “We need to find ways jointly to try and reduce what we see as the cost premium of operating in Nigeria, so we are looking at ways where the PIB can help there.”
See below picture reel of the courtesy visit to the Senate President. To read more please click on this link
