Abuja — International Oil Companies, IOCs, operating in Nigeria have commended the National Assembly for passing the Petroleum Industry Bill, PIB, after almost two decades of trying.
The leaders of the oil and gas industry who spoke at the ongoing Nigeria Oil and Gas Conference in Abuja praised the federal legislators for doing a fantastic job on the PIB.
The Chair, Shell Companies in Nigeria and Managing Director, Shell Petroleum Development Company of Nigeria, Mr Osagie Okunbor in his comments on a panel session however pointed out that oil host communities would play a crucial role in the sector’s sustainability.
Okubor who congratulated the House of Representatives members and Senators for passing the bill explained that “We tried to hold them responsible during the Nigeria Petroleum Summit and we are happy to hear that the bill has been passed.
“We want to believe that the harmonised bill will meet the demands and expectations of the industry”, he said.
On the role of oil host communities, he said: “Protecting the infrastructure is key, when they are affected, production is affected.
Most pipelines are needs reconciliation factors because only about 56 per cent of products is being delivered, 44 per cent disappears and these are material for the country.
“If we get the bill right and incentivise the host communities, we will all be better for it,” he added.
On his part, Managing Director, TotalEnergies PLC, Mike Sangster, said the industry was looking forward to seeing how the harmonized version of the PIB will look like.
He said: “Navigating to pass the PIB by the national assembly is a great one and both the federal government and the assembly deserve commendation.
“We look forward to the harmonisation of the bill and we hope to see a working document that will enhance the sector.
“The collaboration between the Executive and the Legislature is very important for the desire to have a bill that will work for the country”.
Sangster noted that Nigeria has a huge reserve of oil that will take about 50 years to develop, stressing that no one knows how the demand will be in the future.
The TotalEnergies boss who stated that the PIB would go a long way to facilitate the needed investment that would drive growth and stability in the sector explained that with a global drive for energy transition, Nigeria must work hard to ensure that it continued to remain relevant in the system.
Also speaking, Chairman and Managing Director, Chevron Nigeria Limited (CNL), Mr Rick Kennedy, said the national assembly did a fantastic job in the passage of the PIB.
“We are looking forward to seeing the final version which will believe will enhance operations in the sector,” he said.
Kennedy identified low carbon emissions, gas development, effective industry policies, collaboration for cost reduction, and digital technology/innovation as strategic imperatives for fortifying the Nigerian oil and gas industry for economic stability and growth.
He noted that the entire industry continues to face strong headwinds ranging from the challenges associated with the COVID-19 pandemic, among others, stating that the global community has continued to scale up the collaboration towards lowering carbon emissions.
“Chevron supports global efforts to reduce carbon emissions and is actively investing in operations to improve environmental performance while also working with industry to develop new innovative technology and best practices to achieve these objectives.”
He added that in 2021, the company plans to spend some millions of dollars to advance projects in key focus areas: energy efficiency, flare reductions, venting and fugitive reductions, renewables, and carbon capture, utilization, and storage.
Vanguard News Nigeria