‘PIB will affect gas venture agreement’

Mark-WardThe Chairman, Oil Producers Trade Section of the Lagos Chamber of Commerce and Industry, Mr Mark Ward, has said if the Petroleum Industry Bill (PIB) is passed into law in its present form, it will affect the Joint Venture Gas Agreement between the Nigerian National Petroleum Corporation (NNPC) and the international oil companies (IOCs).

Delivering a paper titled: ‘’Fiscal provision and challenges to investment in the petroleum industry,’’ at a power summit in Lagos, Ward said the PIB will not benefit the foreign oil companies that are parties to the agreement.

He said PIB would encourage local participation in oil and gas, as well as affect the stake holdings of multinational oil companies in the project.

He said: ‘’Studies have shown that PIB will affect the involvement of oil majors in Nigeria’s oil and gas industry. PIB will make Joint Venture Agreement on Gas fiscally uncompetitive. The reason is because PIB will increase participation in the gas sector, thereby affecting the foreign oil companies. The cost of gas project is higher than the regulated gas prices in Nigeria.’’

He said crude production would drop by 800,000 barrels per day by 2022, unless the government took steps to resolve issues such as oil theft and pipeline vandalisation.

He argued that Nigeria will have one of the harshest fiscal regimes when the PIB is passed because there would be less foreign participation in the oil industry.


[The Nation]



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