Akpan Bassey, chairman of the Senate Committee, Upstream oil and gas has said that the recently passed Petroleum Industry Bill (PIB) will arrive at the desk of President Buhari for assent next week.
Speaking at the 20th Nigerian Oil and Gas Conference held in Abuja on Wednesday, Akpan said that the cooperation between the executive, legislators, and industry operators will ensure a speedy assent by the president.
At the same event on Tuesday, vice president Osinbajo also said that the bill will be given accelerated passage when it comes to the national assembly.
Currently, both committees of the national assembly are working to harmonise the bill and resolve differences especially in the host community element of the bill.
Akpan said that the bill has captured scenarios that will move the sector forward including deepening the downstream sector and getting a clearer focus on driving gas as an investment resource.
Read also: Kanu: Buharis most notable achievement in six years
“With this, we will be moving where the world is heading, what interests me is the concept of the management of the host community and the structure to ensure transparency and effectiveness to make them take their destinies in their hands,” Akpan.
Osagie Okubor, country manager for Shell in Nigeria said the host community aspect is a critical aspect of oil and gas sector operators. Citing the case of one of Shell’s critical pipelines where 44 percent of the product is lost before it gets to the terminal has an impact on their operations as well as the country.
The executive had recommended 2.5 percent of the previous year’s operating expenditure as host community allocation but the national assembly increased it to 5 percent.
“After engagement with operators, we believe that for peaceful coexistence, that a chunk of production cost goes to activities in the host community, we believe an increase of 5% percent and placing responsibility for the protection of the assets to the host community will achieve their buy-in,” said Bassey..
Akpan said that lawmakers excluded the state government to prevent interference and now make it between the settlor and the host community
The host community aspect will be reconciled by the two communities in the upper and lower chamber where the senate has proposed 3 percent while the house of representatives has proposed 3 percent for the host community trust fund.
