PIB 2020 will transform Nigeria as the most transparent in Africa-Expert

    0
    324
    spot_img

     

     

    The Petroleum Industry Bill 2020, PIB, is set to transform Nigeria as the most transparent in Africa as it will ensure that acreages will only be awarded through open and competitive bid process. So also all contracts, licenses, leases and side letters will no longer be confidential and must be published on website of the regulator. So also summaries of all payments to Government by each contractor,  licensee or lease  must be published and geological, geophysical,  geochemical and  technical data will  be accessible to  all interested  parties and be  available in the  National Data  Repository.

    The Senior Partner, Primera Africa Legal Director, Aspen Energy, Israel Aye, made this known while speaking at a recent Stakeholders Forum in Lagos, with the theme: The Petroleum Industry Bill 2020 Overview.

     

    “The PIB 2020 will ensure that acreages will only be awarded through open and competitive bid process. So also all contracts, licenses, leases and side letters will no longer be confidential and must be published on website of the regulator. So also summaries of all payments to Government by each contractor,  licensee or lease  must be published and geological, geophysical,  geochemical and  technical data will  be accessible to  all interested  parties and be  available in the  National Data  Repository,” he said.

    “Align acreage management law and practice with global best practice, create framework for responsible management of environment, allow greater private sector participation, and create a framework for domestic utilization. The provisions encourage efficient exploration and production operations and transparent allocation of petroleum rights and assets. Environmental obligations are backed by cash and ensures that the promises to the environment are kept. Petroleum operations likely to be private sector led leaving government to regulate effectively. Domestic utilisation of oil and gas will create opportunities for local benefits,” he added

    He further stated that the Bill will decommission and environmental remediation funds, redefined Government participation, domestic crude oil and gas delivery obligations, align acreage management law and practice with global best practice, create framework for responsible management of environment, allow greater private sector participation and create a framework for domestic utilization.

     

     

    Aye

    The Legal luminary further listed other advantages of the Bill to include: good governance, competitiveness, global best practices, ease of doing business, while paying attention to the following as our Guiding Principles: Early revenues for Government, simplicity of administration, equity and fairness, competitiveness, and transparency.

    Others are predictability, responsiveness, best practice, sustainability, role clarity. Primary Goal: Accelerating the Economic Growth: PIB will contribute in two important ways to the acceleration of economic growth in Nigeria: such as offering on a voluntary basis a conversion contract exchanging a significant relinquishment of acreage for somewhat improved fiscal terms.

    The Bill according to him will create an NNPC Ltd. As a public limited Liability Company with an objective of commercial efficiency, no longer a statutory corporation. Ostensibly run by an independent board and management, no more appropriation of public funds.

    “NNPC is lacking well-defined mandates and an objective of commercial efficiency. Needs to be focused, adding that NNPC is run as an extension of the Presidency and totally lacking accountability to the public,” stated Aye.

    “Commercially defined priorities for the National Oil Company, NOC. However, the mandate of the NOC, especially against the background of the global operating environment needs to be better clarified as appointment of Board by Mr. President antithetical to the stated objectives of being accountable to the public, commercial efficiency and a clear mandate.  There is room for that to be refined,” he stressed.

     

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here