Public Hearing commenced at 10:28 with presentations from OPTS and its members
OPTS Chairman
- PIFB
- JV oil will grow
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- Sanctity of contract generally observed
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- Deep offshore royalties significantly increased
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- Exclusion from production allowances does not incentivize the production of oil or gas in deep water
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- The sales of gas to the domestic market
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- Multiple levels of ring-fencing may inhibit simplicity of implementation and may be a source of dispute
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- Excessive powers of the Commission – the setting of rents, metering points
- PHICB
- Excessive financial burden on OPTS members in view of all the taxes and levies imposed on the industry
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- Does not take into account the CSR obligations to communities outside
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- Recommendation that the contribution should be deducted from current contributions to NDDC
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- The bill as proposed imposes significant administrative burden
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- No clear definition of Host and Impacted Communities – Bill should set clear guidelines
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- Disputes to be resolved by the Commission – state governments should be accorded a role in disputes resolution
MD Exxon Mobil
- PIFB
- JV gas projects will be negatively impacted
- Small and medium-sized deepwater developments will remain stranded
MD Chevron
- PIFB
- Lack of incentives for deepwater fields – only 4% in the current portfolio as opposed to 49% under the existing fiscal terms
- Small and medium-sized deepwater fields will be stranded – specific terms based on field size should be proposed
- PHICB
- Definition of Host and Impacted Communities ambiguous