PIA has opened vista of opportunity for the Country-NCDMB

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    The Nigerian Content Development and Monitoring Board, NCDMB, has congratulated Nigerians on the passage of Petroleum Industry Bill in to Act.

    Speaking at the Association of Energy Correspondents of Nigeria, NAEC 2021 International Conference with the theme ‘Petroleum Industry Act: Energy Transition and the Future of Nigeria’s Oil and Gas held on Tuesday in Lagos, the Executive Secretary, NCDMB, Simbi Wabote, said,  the passage of the PIA has opened a vista of opportunities for the Industry which will foster the development of critical infrastructure and enable the utilization of gas resource for national development

    Represented by the represented by Tunde Adelana, Director, Monitoring and Evaluation, NCDMB, he said, the PIA will enable development of host communities, reduce funding pressure on the Government among other things and stimulate the much-needed investment in our Oil and Gas industry.

    “Overall, PIA will bring a host of opportunities to the Nigerian Oil & Gas Industry”, he maintained.

    He listed the PIA implementation area of Focus to include Extract Commitment, break up of companies and Energy Transition.

    Speaking further, he said the PIA will ensure the establishment of  Host Community Development Trust, establishment of Host Community Development Trust Fund, allocation of Funds, Host Community Advisory Committee and financial contribution to an environmental remediation fund.

    The PIA according to him will see to the establishment of the NNPC Ltd. Functions – Section 53, possible to restructure Joint Venture agreements into IJVC and NNPC Ltd is to engage in the business of renewables.

     

    Wabote noted that the PIA Petroleum Profits Tax, PPT, is regime rate replaced with the National Hydrocarbon Tax. So also royalties reduced for onshore areas, shallow water, deep offshore/frontier basins, and natural gas.

     

    Speaking on the Midstream Activities, he said it charges operators within the sector for financing the National Strategic Stock to set up a decommissioning and abandonment fund and eliminates government’s regulation on pump price of petroleum products.

     

    On gas Development, he said, PIA will ensure gas flaring penalties, establishment of Midstream Gas Infrastructure Fund and special Regulation for Midstream & Downstream Gas Operations and Natural Gas Prices for strategic sectors.

    On governance he noted that the Powers of the Minister – Section 3, Establishment of Nigerian Upstream Regulatory Commission – Section 4, Establishment of Midstream & Downstream Regulatory Authority – Section 29.

    The Administration he said, the PIA takes care of administration of acreage & vesting of data, National Grid System, licenses & leases, Petroleum Exploration License, Petroleum Prospecting License, bidding & award process, Petroleum Mining Lease, Duration & renewal of leases & licenses.

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