Stakeholders advocate unbundling of PIB for effective operation of oil sector

As the nation anxiously waits for President Muhammadu Buhari to unfold his ministerial nominee list, oil and gas sector stakeholders have advocated that he unbundles the Petroleum Industry Bill (PIB). In addition, the relevant section of the extant Petroleum Act should be amended to meet the current realities globally and position Nigeria to be globally competitive as an oil and gas country.

According to them, the industry can effectively be operated without necessarily waiting for the passage of the bill, which has been stalled in the National Assembly. The non-passage has stalled investment in the oil and gas industry for more than six years now.

The stakeholders also proposed that the government should take a bold step to reduce the contracting cycles for services and projects to three months and nine months, respectively, within the sector.

The contracting circle is the longest compared with other countries like Angola. In Nigeria, it takes about 36 months to complete with it attendants consequences on cost of projects and investments, while it takes just about eight months in Angola.

The stakeholders, under auspices of the Nigerian Association of Petroleum Exploration (NAPE), also frown at the situation in which lack of clear and coherent policies on gas-to-power had significantly hindered the integration of and long-term investments required to ensure the supply of gas-to-power plants.

Chikwendu Edoziem, president of NAPE, who made these known while unfolding the events planned for the upcoming annual international conference and exhibition, scheduled for November, also recommend that government should accelerate the funding of and completion of new gas projects in the western axis of the Niger Delta to immediately add about 2000mm standard cubic feet scf/day of gas production for the purpose of enhancing power generation in the country.

Stranded associated gas that is flared be utilised for power generations via accelerated approvals for captive power plant, he said.

The NAPE president, who noted the theme of the conference “Global Energy Dynamics and its Implications for Nigeria’s Energy Sector and Economic Security,” said the association recommended greater integration between gas supply, infrastructure and power generation to improve efficiency.

“Improvement in power supply will potentially generate significant employment opportunities, reduce cost of doing business, revitalise the manufacturing sector and make Nigeria a more attractive investment hub,” he said.

The association also called of the government to create an enabling environment and incentives to increase exploration opportunities, especially in the high risk and high-pressure frontier basin and under explored deep High Pressure High Temperature (HPTH) plays.

This, he said, could be done by given tax breaks, signing of memorandum of understanding with investors and also pay its cash call obligations promptly.