Category: News

On Thursday, December 3 2020, I spoke with Mrs. Funmi Ogbue, CEO, Zigma Limited; Dr. Francis Adigwe, PIB Consultant to the Nigerian Senate; and Dr. Obinna Dike, Assistant Professor of Law, American University of Nigeria, on Host Community in the PIB. We discussed the background of host community, identification of host communities, sources of funding and allocation of host community funds, governance structure of the Host Community Development Trust, host community needs assessment and development plan. You may watch the video of the session below.

We had an amazing session talking with Ms. Ronke Onadeko, Principal Consultant, DRNL Consult Ltd, UK; Mr. Gbite Adeniji, Partner, Advisory Legal Consultants; Mrs. Ogechi Nkwoji, Head Economic Intelligence Research and Regulation, MOMAN; and Engr. Chichi Emenike, Head, Gas Ventures, Neconde Energy Limited on the Midstream & Downstream Regulation in the PIB.

Key points from the discussion include:

1. There should be no template or framework for the pricing of petroleum products, if we are truly operating a deregulated market. The prices should be determined by demand & supply in the market, input prices, and potential or required return on investments amongst others.
2. The PIB should not set the price of gas, as this will prove to be a disincentive for gas business in Nigeria. Gas prices should be determined in a “willing buyer – willing seller relationship”.
3. The PIB needs to address importation of petroleum products.

Watch a video of the session below.

The Petroleum Industry Bill 2020 passed the second reading at the Nigerian House of Representatives and has now been referred to the House’s Ad Hoc Committee on the Petroleum Industry Bill. This comes a few weeks after the Senate passed the same bill through second reading. Given that the year is winding down, it is likely that any public hearing on the Bill will hold in January 2021.

On Thursday, November 19 2020, I spoke with Ms Stella Duru, Partner, Banwo & Ighodalo; Dr Nuhu Habib, Special Assistant to the President on Natural Resources; and Dr Dayo Ayoade, Senior Lecturer of the University of Lagos, on Upstream Regulation in the PIB 2020. We discussed the new acreage management system, ministerial discretion in the award of licenses, the option to convert existing licences to the new licenses and the requirement for both the Environmental Remediation Fund and the Decommissioning & Abandonment Fund. You may watch the video below.

At the 3^rd session of the PIB Education Series, I will be joined by guest speakers – Ms Stella Duru, Partner, Banwo & Ighodalo, Dr Nuhu Habib, Senior Special Assistant to the President on Natural Resources and Dr Dayo Ayoade, Senior Lecturer at the University of Lagos. We will be speaking about Upstream Regulation in the PIB including the new licensing system, ministerial discretion, voluntary conversion from existing licences to the new licenses, gas flaring and the Environmental Remediation Fund amongst others. Please join us by clicking here.

On Thursday, 12th of November, 2020, I spoke with Charlotte Essiet of AOS Orwell and Israel Aye of Primera Africa Legal on the Institutional Framework of the Petroleum Industry Bill 2020.

Key points from the discussion include:

1. Need to give careful consideration on the interface between the proposed regulatory agencies to ensure that there is no unhealthy competition, which may be harmful to the industry;
2. The proposed governance structures for the regulatory authorities and the new National Oil Company, should be revised to include all executive directors/commissioners on the relevant boards.
3. The PIB should be explicit about the privatisation of NNPC.

Watch a video of the session below.

Last week I spoke with Rolake Akinkugbe-Filani and Osten Olorunsola on the “Background to the PIB”. Here’s a video of the event.

Our second session in the PIB Education Series holds this Thursday, 12th of November, 2020 at 4pm and we will be discussing the proposed Institutional Framework in the PIB 2020. I will be joined by Ms. Charlotte Essiet, Director of Corporate & Regulatory Affairs at AOS Orwell, Dr. Kelechi Ofoegbu, Technical Adviser (Legal) to the Honourable Minister of State for Petroleum Resources and Mr. Israel Aye, Senior Partner at Primera Africa Legal and Director at Aspen Energy.

Continue reading “2nd Edition of the PIB Education Series – Institutional Framework”

• 

We had an awesome time talking to Rolake Akinkugbe-Filani and Osten Olorunsola at the maiden edition of the Petroleum Industry Bill Education Series where we gave a “Background to the PIB”. The panellists started by discussing the history of the PIB and why it has taken us so long, before giving us an introduction to the global context and challenges being faced by the Nigerian oil and gas industry. We discussed energy transition, the rise of renewable energy, competition from new producing areas in Africa and across the world. A few key points to note:

1. The PIB should not only solve for the problems of the past, but for the problems of the future;
2. The Bill must derive from the overall strategic intent of the country in the energy space;
3. Nigeria needs to think about how to balance the energy mix – the choice between fossil fuels and green energy is not a zero-sum game.

A copy of the session will soon be made available in video and audio formats. We thank our panellists and attendees, and look forward to the next session – “PIB – The Institutional Framework”. We will be talking about the roles of the Minister, the new regulatory agencies, the proposed NNPC Ltd. and Incorporated Joint Ventures. Join us on the 12th of November at 4 pm. If you haven’t done so, please register here.