Energy

Expert explains how new PIB will drive oil sector reform, urges FG to send it to NASS

By NAN

Mr Bank-Anthony Okoroafor, former Chairman, Petroleum Technology Association of Nigeria (PETAN) has urged the Federal Government to send the new Petroleum Industry Bill (PIB) to the National Assembly.

Mr. Bank-Anthony Okoroafor, former Chairman, Petroleum Technology Association of Nigeria (PETAN).

Okoroafor in an interview with the News Agency of Nigeria (NAN) in Abuja, on  Sunday said the bill was imperative to the reforms needed in the sector.

The News Agency of Nigeria recalls that the Minister of State for petroleum Resources, Chief Timipre Sylva  had on  July 14  announced that the PIB would be sent to the NASS in two weeks

NAN also reports that the National Assembly (NASS) said it is expecting the new PIB  soon for deliberations and debate  to begin on the much-awaited piece of legislation

“ It is imperative for the executive to send the bill to the NASS because timely conclusion of the ongoing industry reforms guaranteeing legislative certainty and clarity on Petroleum issues is needed now.

“ This is holding down lots of FID’s and critical investment.

“ It is important to send a signal to the market that this government is serious about the oil reform agenda.

“ The uncertainty created by the lack of passage of the reforms have significantly affected investments in the Nigerian oil and gas sector.

“ Oil is being found everywhere around the globe, time is of essence now to pass this PIB. There is no better time than now,’’ he said

Okoroafor also the Managing Director of CB Geophysical Solutions Ltd, a seismic data acquisition, processing and interpretation company said that the PIB is panacea to economic growth in the country.

He commended the effort of Sylva and Group Managing Director of the Nigerian National petroleum Corporation (NNPC) for their steadfastness, doggedness and determination on the PIB.

He further said that government should assent to and speedily sign the PIB Comprising the Petroleum industry Fiscal Bill (PIFB), PIAB Petroleum Industry Administration Bill(PIAB) and  Petroleum Host and Impacted Communities Development Bill(PHICDB).

` Work with National assembly and critical stakeholders to actualise this because it is holding down lots of FID’s and critical investment.

“ The passage of and the assent by Mr President to the PIGB is important to send a signal to the market that this government is serious about the oil reform agenda.

“The uncertainty created by the lack of passage of the reforms has significantly affected investments in the Nigerian oil and gas sector,’’ he added.

He also called on the legislators to expediate the passage of the relevant bills associated with the section 16 of the petroleum act and incorporate feedbacks from the public hearing

“Our production is declining 10-15 per cent annually. To maintain two million barrels oil production per day, we need to be spending about 10 billion dollar capital expenditure annually.

“To grow to your target daily production of three million barrels per day, we need to be spending between 20 to 30 billion dollars capital expenditure yearly.

“This will guaranty activity level to achieve and maintain the desired level of daily production,’’ he said.