PIB: Reps approve establishment of petroleum host communities’ fund, 3 others

The House of Representatives on Thursday approved the establishment of the petroleum host communities’ fund (PHCF) in the Petroleum Industry Bill (PIB) being considered in the Committee of the Whole.

Clause 116 provides for the establishment of the fund, clause 9 provides for the establishment of the Petroleum Technical Bureau (PTB), clause 43 provides for the establishment of Downstream Petroleum Regulatory Agency while clause 73 provides for the establishment of Petroleum Technology Development Fund.

The PTB, according to the bill, is to develop exploration strategies and portfolio management for the exploration of unassigned frontier acreages in Nigeria as well as stimulate the interest of local and international oil and gas companies in exploration of the frontier basins in Nigeria to increase Nigeria’s petroleum resources.

The House, however, stepped down the consideration of clause 117 of the PIB which provides that the fund “shall be utilised for the development of the economic and social infrastructure of the communities hosting petroleum fields in the petroleum industry.”

The Petroleum Technology Development Fund is to be used for training of qualified Nigerian graduates, professionals, technicians and craftsmen in the field of engineering, geology, science and management and other related fields.

The lawmakers also adopted clause 111 which provides that the net surplus revenue recoverable from a petroleum products marketing company shall be calculated based on the volume of the affected products sold on zonal basis and to the amount by which the uniform prices at which the products were sold exceeded, or were less than the prices of those products prevailing immediately before fixing of the uniform prices of the products.

According to clause 112 of the bill, PPMC board is empowered to impose 10 per centum of the amount unpaid per month on any operator who fails to pay the surplus revenue within 21 days.

On the reporting standard, the House adopted Clause 114 which provides that all petroleum product importers including National Oil Company and petroleum products marketing companies shall prior to but not later than 21 days of each importation, report details of all petroleum products imported into Nigeria to the Equalisation Fund including the quantities, date of delivery and place of discharge.

It also provides that all licensed petroleum product storage facilities, including storage facilities belonging to National Oil Company shall on monthly basis, deliver to the board, the log of product movements into and out of the facilities and returns of bridging and equalisation allowances collected from petroleum products marketing companies and remitted to the board.