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Late live blogging at the Senate public hearing continued

HOSTCOM

  • Relationship should be a tripartite relationship between FG, Host Community & Oil Companies;
  • 10% equity partnership;
  • Representatives in the board and management committees of oil companies;
  • No multiple trusts with various oil communities;
  • A National trust fund should be administered by Hostcom and traditional rulers;
  • Hostcom to nominate those who will be responsible for managing the funds;
  • Hostcom should serve on the board of the regulatory commission;
  • IOCs must set up refineries in Nigeria;
  • Gas flaring penalties should be paid to Host Communities;
  • Communities should not be penalised for pipeline vandalism;
  • Nigeria must control majority shareholding in the national oil company;
  • Hostcom must be included in every government institution;
  • Host communities must have the first right of refusal in any privatisation.
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Late live blogging of the Senate Public Hearing on Petroleum Industry Reforms

We arrived late at the Senate’s public hearing on the three public hearings today. We will give a summary of all the presentations earlier.

Ministry of Petroleum Resources – Fiscal Bill

  • many fiscal abuses in the current Fiscal Bill;
  • lack of fiscal neutrality in the bill;
  • bill does not sufficiently reward the domestication of oil

Administration Bill

  • more reflection on the powers of the Minister;
  • opportunity for checks & balances over the Commission by the Minister;
  • there should be a requirement for bid rounds every 3 – 5 years;
  • the decision on bid round should be a political decision;
  • Minister to give guidelines;
  • who regulates the regulator?
  • provisions for acreages to the commission to be amended and explicitly granted to the state;
  • more provisions for contract transparency;
  • gas flaring provisions are scaled back in this bill;
  • national strategic stocks should be handled by a regulated entity;
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House of Reps Public Hearing – A Few Takeaways

It has been just over a week since the Public Hearing at the House of Representatives. Enough time to have mulled over some of the issues raised by investors, the Federal Government & the public on the Petroleum Industry Administration Bill, the Petroleum Industry Fiscal Bill & the Petroleum Host & Impacted Communities Bill. Here are 5 takeaways from the hearings. Continue reading “House of Reps Public Hearing – A Few Takeaways”

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Light-hearted analysis of the Petroleum Industry Fiscal Bill

Dr Ekpen Omonbude of Bargate Advisory recently published this light-hearted but weighty analysis of the PIFB. In it, Dr Omonbude highlights 5 key issues in the Bill and the potential impact on investors and the Nigerian government. As a former advisor in the Commonwealth providing advice to countries seeking to set up or reform their natural resources fiscal policies, he is in a good position to examine the government and investor perspectives on the terms of the Bill.

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This week on petroleumindustrybill.com

Please find below a list of some of the issues we’ll be covering this week on petroleumindustrybill.com:

  • On Monday we will bring you a light-hearted review of the Petroleum Industry Fiscal Bill (PIFB) by Dr. Ekpen Omonbude, formerly of the Commonwealth, now of Bargate Advisory. Dr. Omonbude has advised a number of countries in the Commonwealth on their natural resources fiscal framework and in his usual style, makes the provisions of the PIFB accessible to readers;
  • We will also be highlighting key takeaways from the public hearing at the House of Representatives;
  • Further analysis of key terms of the PIAB will also be provided over the course of the week.

We thank you for following our blog.

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Senate Public Hearing will not hold this week

We understand that the public hearing at the Senate on the petroleum industry reform bills will not hold this week as previously indicated. We do not have any information on the rescheduled dates and we’ll advise once we do.

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House of Reps Public Hearing Day 2 – Dangote Industries Limited

  • PIAB
    • concerns about the third-party access – will not encourage investment
    • price control provisions are worrisome
    • specific protection to be given to facilities in the midstream sector
    • entities operating in the Free Trade Zone not covered by these provisions
  • PIFB
    • attempt to reduce allowable expenditure – provisions of the PIFB should be aligned with CITA
    • companies should be able to appeal Federal High Court decisions
    • re-consider the basis for penalising failure to self assess
    • withholding tax penalties should be aligned with CITA
    • harmonise potential conflicts in definitions of midstream and downstream