By Gift Olivia Samuel, The Sight News
Nigeria’s Minister of Petroleum Resources, Timipre Sylva has expressed optimism that the Petroleum Industry Bill (PIB) will be passed before the end of May 2020.
This is just as he said, that the PIB is at the final stage of harmonization of all existing version from 2000 to date (2009, 2012, and 2018) with consideration raised by the industry players to create enabling environment for investors as well as appropriate Government take, in all the oil and gas value chain.
Speaking at a press briefing with journalist in Abuja, Sylva said there will be no bid round until the PIB is passed; adding that new gridding, acreage management and bidding process are thoroughly elucidated in the upcoming PIB.
In his words, “Counting on the current harmony between the Executive and Legislative arms of the Government, we are optimistic that both the Petroleum Industry Governance, Administration & Host Communities Bill on one hand and Petroleum Industry Fiscal Bill on the other will be passed within the first anniversary of this administration”.
According to him, special focus will be placed on the Midstream and Downstream sectors. “We are considering two regulators, one for the Upstream (the Commission) and another for the Midstream & Downstream (the Authority).
“The Midstream and Downstream sectors will particularly open enormous opportunities to local investors and consequently create massive job opportunities in the country.
“For example, investments will be available in pipeline engineering design, procurement and construction, terminal operations, pipe mills, fabrication of pressure vessels, storage facilities, pipe transportation and laying equipments, Refineries, Central Processing Facilities and also investment in Gas-based industries (Fertilizer, Methanol, Petrochemicals, LPG and CNG) etc., open access for oil and gas transportation will be fully enhanced.
“On the upstream side, we are coming up with more robust fiscal provision, acreage management, drilling-or-drop programme, etc. We are not only going to retain investors, multitudes will join the leagues of high-value operators”, he remarked.
He expressed disappointment that the industry has not moved forward, adding that 2m pbd was produced few years ago and a projection of 3m bpd and 4m bpd.
“Today we are producing 1.774m bpd according to OPEC quota.UAE today produce 4m bpd today from 2.7m bpd as at today we are producing 1.774m bpd. We have the mandate to grow it and that’s the mandate of President Muhammadu Buhari,” he said.