By Abisola THOMPSON
Some stakeholders in the oil and gas industry have tasked the Federal Government and the incoming ninth assembly to speedily as possibly pass all pending Petroleum Industry Bill (PIB) into law.
They made the request in separate interviews in Lagos against the backdrop of their expectations towards the new government.
Mr Chikezie Nwosu, the Executive Vice-President, Business Development, Tolea Energy Limited, said this became necessary for the in incoming 9th Assembly and the presidency to enable the anticipated explosive growth of both local and foreign investments in oil and gas projects.
Nwosu said that the PIB in its current four-component form (PIGB, PIAB, PIFB & PHICDB) is long over-due for implementation into law, adding that such delays hinders growth in the sector.
According to Nwosu, “There cannot be a perfect bill that satisfies all stakeholders and, instead of waiting unrealistically for this, an 80 per cent solution is a great start, with improvements coming as we smooth out issues during implementation.
“To allow the PIB to slip beyond the end of 2019 would, in my opinion, be tantamount to gross negligence by all stakeholders.
Nwosu, who is also a former Chairman and Member Board of Trustees, Society of Petroleum Engineers (SPE) Nigeria Council gas ulitilisation is also another area that government needs to invest greatly.
“It is important for positive action, not words or copious policy documents, to be taken on utilizing the abundant gas resources in Nigeria to deliver the power, industry and export earnings needed to diversify our economy.
“This requires a partnership between government (enabling policy, environment and incentives) and the private sector (investments in upstream gas availability, midstream gas infrastructure, downstream gas delivery with the enabling market-driven commercial agreements) to unlock this potential.”
He said that government needs to ensure that a single organ be made accountable for delivering on all aspects of gas strategy.
He added that (not a behemoth, but single point accountability at the executive level) by harmonizing the strategies of the disparate ministries and parastatals without impugning on their independence to function.
Mr Adedayo Ojo, the Chief Executive Officer, Caritas Communications said that the oil lease licenses that are due for renewal should be addressed and the structure that will facilitate community co-ownership of oil E & P assets need to be formalised.
Ojo said that the first four years of President Buhari has been quite a bit for the oil & gas industry, adding that a lot has been done to lay the foundation that will herald a leap in the fortunes of the industry.
He said the framework for restructuring has been laid and there was a lot achieved in the quick wins rolled out by the Ministry of Petroleum Resources.
He said among others, the, huge debt of about seven billion dollars to International Oil Companies (IOC’s) was addressed with an agreement on payment structure.
Ojo said that alone has got a number of the IOC’s to return to implementing hitherto abandoned work programs, adding that oil production has improved and there’s been relative peace in the oil & gas communities.
The oil and gas expert said that the refineries should be sold outright and government should get out that business, saying this, will encourage market induced competition and the attendant improvement in products and services.
He, however said a good framework should be in place for government withdrawal, adding that government should pursue the reform and deregulation relentlessly.
“Half way measures won’t help. Market forces should be allowed to dictate prices and mode of operation. If that is not done, government will continue to waste money on subsidies of different aspects of the business.
“Funding of modular refineries should be a purely private sector and financial services sector affair. Those who have the licences should source funding. Government should interfere in how the licencees raise funding.
“The reform requires acceleration and sustenance. Projects such as the Liquiefied Petroleum Gas (LPG) penetration project should be implemented.
“Also, it’s about time that we had another bid round for the marginal fields. Such activity, will encourage more Nigerian participation as well as attract increased international investment in our oil and gas industry,’’ he added.
Former Chairman, Independent Petroleum Marketers Asscoition of Nigeria (IPMAN) Mr Olumide Ogunmade said that it is expected that the oil and gas sector will receive great attention from the government during the second term of the Buhari administration.
Ogunmade said that Buhari second term will possibly the long awaiting PIB bill rejuvenated and passed, adding that it is also confident that the parameters for deregulation will be set.
He said the last four years of Buhari’s administration has been that of conflicting fortunes initially.
The marketer said that Nigerians were confronted with the government determination not to increase the prices of petroleum products but when realities dawned on the administration,prices of the products we’re increased and the industry has since stabilised.
“Moreover,the framework for modular refineries we’re set and licences have been given to quite number of them with some of them have actually taken off.
“I think it’s too late for the government spending money on the refineries because this will send wrong message to the investors,with Dangote’s refinery in the offing and some of the modular refineries almost set for take off.
“Except that NNPC is first privatised and asked to take over and source for private funds to rehabilitate,but must not use public funds because what’s the sense in trying to deregulate and at the same time committing public funds in the refineries,’’ he said.
The Ex-chairman said that government’s reluctance in quickening the deregulation of the downstream sector will be challenged and queried by the coming on stream of both Dangote and the modular refineries.
He said that because of the efficiencies and innovations that would be brought about by these private projects,the apparent inefficiencies of government.
He said that this will be exposed and government will have no choice but to deregulate and privatise in order to compete and survive.
Ogunmade said that government should continue to support and encourage investors towards the take off of the modular refineries but should not commit public funds or allocate any source of funds for them because they are purely private initiatives and projects.
