Group Calls for Speedy Passage of PIB

The Campaign for Growth in the Nigerian Oil and Gas Industry (CGNOGI) has called on the National Assembly to speedily debate and pass the 2012 Petroleum Industry Bill (PIB) into law.

The CGNOGI said a speedy passage of the bill will help place the Nigerian oil and gas industry on a modern pedestal and replace the existing laws which do not adequately reflect global realities. Besides this, the bill will open a new chapter of development in the nation’s oil and gas industry as it aspires to increase indigenous participation, address underdevelopment of oil bearing communities and safeguard the environment against pollution.

According to Mallam Abubakar Kalto, Executive Secretary of CGNOGI, the National Assembly is on the edge of writing its name in gold by passing the most significant legislation governing the oil and gas industry. ‘The National Assembly is on the threshold of making history by approving this all-important legislation which has taken several years to draft. We cannot allow this opportunity slip through the fingers again’.

The CNOGI boss called on members of the national assembly to set aside their differences irrespective of political affiliation and coalesce effort to pass the bill. ‘We wish to call on our legislators to rally together no matter their political party or ideological persuasion to accelerate deliberation on this bill. They must not allow differences with the Executive arm of government come into play in making the decision about this bill because the interest of Nigeria supersedes any other consideration’, he stated.

Kalto said that contrary to claim by some people that western countries are opposed to the bill, the 2012 PIB enjoys support of the international community. He cited recent comment by Mr. Vincent Cable, Business Secretary of the United Kingdom pledging support for the bill as proof. ‘The international community has pledged support for the PIB. Mr. Vincent Cable’s call for the passage of the PIB which places the interest of Nigerians above any other consideration lends credence to the comprehensiveness of this bill and highlights the need for the National Assembly to treat it with urgency’, he said.

The CNGOGI boss said the 2012 PIB reflects the wishes of Nigerians for a reformed and vibrant oil and gas industry which would guarantee economic growth and prosperity. He added that the bill would place Nigeria on path to achieving the target of 40 billion barrels of reserve within the next decade.

Speaking on the impact of the delay in passing the bill, Mallam Kalto lamented that it has created investment uncertainties as potential investors have kept a safe distance while existing players have withheld plans of increasing their investment until the outcome of the bill is determined.

On the concerns of the international oil companies regarding fiscal terms as contained in the PIB, Kalto allayed their fears and said the IOCs should rather embrace the bill as it contains favourable fiscal terms which should serve as incentive for increasing their investment in the industry.

‘We note with sadness the opposition of the IOCs to the current draft of the 2012 PIB which President Goodluck Jonathan sent to the National Assembly. While their concerns are understandable, the fiscal provisions contained in the 2012 PIB remain favourable to them more than other existing legislation governing the oil and gas industry’, he stated. 

Kalto called on the media to remain unfazed in their support for passage of the bill. According to him ‘the Nigerian media has done a lot towards shaping public discourse around the bill. We call on them not to rest on their oars as there’s still more work to be done. The media should do more to ensure that our legislators understand the need to speed up action on this bill’.

He charged Nigerians to put pressure on their representatives at the National Assembly to expedite action on the bill. ‘We call on Nigerians to keep drumming on the doors of their representatives at the National Assembly. Nigerians should ceaselessly petition them until they do the right thing. We cannot mortgage the interest of this country on the altar of ethnic and parochial considerations’, he said.

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.