Senate to focus on Fiscal, Host Community Bill in 2 weeks

Having passed the Petroleum Industry Governance Bill (PIGB), the first in a series of long awaited petroleum industry laws, the Senate is set to shift focus to the Petroleum Industry Fiscal Bill and the Host Community Bill, with the second reading in two weeks’ time.

The chairman, Senate Committee on Gas, Senator Bassey Akpan, made this known during a facility visit by the committee to Ovade-Ogharefe Gas Processing Plant, operated by Pan Ocean, under a joint venture agreement with the Nigerian National Petroleum Corporation (NNPC).

“By passing the PIGB, the Senate has sent a signal to the world that Nigeria’s oil and gas industry is ready for business”, said Akpan. He said that the reason for the successful passing of the PIGB is because “this is the first time the National Assembly is championing reforms in the oil sector” adding that the PIGB passed by the upper legislative chambers, proves that “our laws for the oil industry are concise, the clarity very defined and transparent”.

The PIGB seeks to ensure value addition to the petroleum industry through the creation of efficient and effective governing institutions with clear and separate roles for the petroleum industry. The Petroleum Industry Fiscal Bill focuses on fiscal framework that encourages further investment in the petroleum industry, while optimising revenues accruing to the government. The Host Community Bill will take care of special interests and all community issues.

“We believe that if the area you are operating is safe, you can derive maximum benefit from your operations.  We want to use this opportunity to allay the fears of the people of the Niger Delta and reassure them that the Host Community Bill will take care of all their expected interests”, said Akpan.

The Senate Committee chairman on gas, said the intention is to robustly engage all stakeholders on the Host Community Bill and take the engagement to every state in the country, so that “we can talk to the real people, actually feel their pulse and their pain.”

Senator Akpan commended Pan Ocean Oil Company, adding that members of the committee were impressed with the progress the company has made. He said that due to the importance of Ovade-Ogharefe Gas Processing Plant to domestic gas utilisation, the committee will pay attention and monitor the project closely.

“It is a huge investment and we are looking forward to the benefits Nigeria will derive from the company by the time Phase 2 of the gas processing and all the other aspects, like the liquefied petroleum gas (LPG) and propane come on stream. We are passionate about gas. It’s time to domesticate all the advantages that can accrue through ramping up utilisation in the country”, Akpan said.

Monday Ikhureigbe, Operations Base Manager, Pan Ocean, said the company is in the fore front of gas flare-out in the country, and that by the time phase two fully comes on stream, the company will move from 130 scfd to 200mscfd, in addition to 450 metric tonnes of LPG.

Pan Ocean is the operator of OML98 (Joint Venture with the NNPC), Production Sharing Contract OPL 275 and Ovade-Ogharefe Gas Processing Plant (OOGPP).  The OOGPP Phase 2 off-take project incorporates the production, storage and dispensing of Propane, LPG and Lean Gas.  Pan Ocean is also constructing the 67km deeply-buried Amukpe-Escravos pipeline.

 

FRANK UZUEGBUNAM