NGO launches Oil industry enlightenment campaign

The Campaign for Growth in the Nigerian Oil and Gas Industry (CGNOGI) has launched a nationwide public enlightenment crusade aimed at providing public education and promote informed discourse on issues affecting the oil & gas industry.

The non-governmental organization which published the maiden edition of the public enlightenment campaign on Wednesday, said the initiative became imperative in view of the need to ensure that all stakeholders have all the facts and can meaningfully contribute to public debate on issues. The NGO argued that for too long a small group of individuals and corporate bodies have consistently monopolized the discussion of issues for selfish interests, arguing that in this age of information explosion, there is need for citizens to be adequately informed.   

Explaining the rationale for the campaign, the Group said the oil and gas sector is strategic to the aggregate economy; pointing out that anything that happens in the industry will easily have multiplier effect on other sectors.

In view of this, the Executive Secretary of the Group, Mallam Abubakar Kalto noted that rather than expedite the reform required to move the industry forward, the current debate over the provisions of the draft PIB, which is before the National Assembly is aggravating the challenges in the sector.

According to him, the PIB is very important as it aims to overhaul the industry that has not been blessed with such legislation for several years. Contrary to the view of many operators that the PIB will scuttle their operations if allowed to pass into law, Kalto explained that the overhaul will touch on indigenous and foreign operators in the sector.

The CGNOGI boss therefore stated that the goal of the Public Enlightenment Series is to put the record straight by educating the operators and investors alike about the critical issues that are causing what he called undue delay in the passage of the bill into law by the National Assembly.

In its message released to the public on Wednesday, CGNOGI highlighted the fact that Nigeria has an estimated 37.1 billion barrels of oil in reserves and produces an average of over 2 million barrels per day in compliance with the allocated production quota from the Organisation of Petroleum Exporting Countries (OPEC). His words: “The gas reserves are in excess of 165 trillion cubic feet and like its oil, Nigeria’s gas is rich in liquids and low in sulphur.”

According to Kalto, the legal framework that has guided the industry to date is the Petroleum Act, which was enacted in 1969. The Act, he stated, vests the entire ownership and control of all petroleum in, under or upon any lands within the territory of Nigeria in the State. The legal framework, Kalto said, gives the power to grant the minister the exploration, prospecting and production rights. Aside the Petroleum Act, CGNOGI identified the Deep Offshore and Inland Basin Production Sharing Contracts Act No. 9, Laws of the Federation of Nigeria 1999 as another laws that govern the industry.

Kalto said the modern legislation that is expected to bridge the gap is the draft 2012 PIB that is intended to spell out a new legal framework that will govern the operations and activities of the oil and gas industry. He therefore advised that Nigerians and her business partners, the international oil companies to embrace the PIB because it is designed for the benefit of everyone.