‘Ghana, Angola beneficiaries of non-passage of PIB’

Ghana, Angola and other African countries with hydrocarbon potentials have been named as beneficiaries of the non-passage of the long awaited Petroleum Industry Bill (PIB).

Funso Lawal, in-coming chairman of the Petroleum Club Lagos and the chairman of Sogenal Oil and Gas, said this in a chat on the sidelines of the club’s 2014 annual general meeting in Lagos.

He said that investments especially in the deep offshore of the oil and gas sector were leaving the country in droves for other hydrocarbon hotspots due to the non-passage of the bill.

Lawal, however, said that a lot of activities were still going on onshore and in shallow offshore and expressed optimism that PIB would be passed before the end of the year.

Imo Itsueli, out-going chairman of Petroleum Club Lagos and the chief executive of Dubril Oil, said that the on-going divestment of investments by international oil companies (IOCs) was a good omen for local investors.

He said that Nigeria would benefit immensely from divestment of investments by IOCs, adding that there is no cause for alarm.
According to Itsueli, “We should understand the fact that when one company is leaving and it is a Nigeria company that is taking over, we are not losing anything. All these IOCs employed Nigerian engineers; our people know these oil fields inside out. It is our people and not the expatriates that are the geologists; it is Nigerians like me and you that drilled it. What remains is to find finance, so we are not losing but gaining.”

“Before the divestments, the indigenous production from Nigeria’s 2.5 million barrels per day was just 3 percent. But with Seplat, Niger Delta Company and the marginal field operators, the percentage has now risen to about 9 percent. By the time we see another set of divestment in the next three to five years, indigenous production will grow up to 20 percent. The idea will be for indigenous companies to keep moving in their production in volume so that in the next 10 years, we see indigenous companies producing 40 percent. This will create more jobs for our people,” he said.

Earlier, in his address, Itsueli said that the club has made appreciable impact in making inputs on serious issues concerning the petroleum industry.

He said that the club has been invited at different times to make inputs to the PIB, participated in Federal Government delegations and has engaged serious and committed stakeholders in the economy.
According to Itsueli, Petroleum Club has also collaborated with other advocacy groups like the Nigerian Economic Summit Group and the Nigerian-Canadian Business Association.

FRANK UZUEGBUNAM