Nigeria’s oil reserves are stagnated at 37.5 billion barrels since 2007 due to then onpassage of the petroleum industry Bill (PIB).
This is as the situation has discouraged investments in the oil sector the PIB is required to restore, if passed.
This was revealed monday at a public hearing session organised by the Senate’s Joint Committee on Petroleum (Upstream), Finance, Gas and Judiciary on Deep Offshore and Inland Basing Sharing Contract (Amendment) Bill 2019.
In attendance were the minister of state for petroleum, Timpre Sylva, critical stakeholders in the oil and gas sectors including the group managing director of the Nigerian National Petroleum Corporation (NNPC), Kele Kyari, as well as managing directors of oil firms.
The minister said during the event that while the oil reserves increased from 22 billion barrels in 1999 to 37 billion barrels in 2007, only 500 million barrels were added to it between 2007 and 2019.
Sylva noted that the reason for the stagnation was due largely to lack of required regulatory laws for the oil sector, and that the ugly situation had driven away investors.
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“The Public Hearing being held today on Deep Offshore and Inland Basin Production Sharing Contract (Amendment) Bill 2019 by the relevant Senate Committees, will no doubt serve as precursor for consideration and passage of PIB in no distant time.
“Perhaps as a result of some level of regulations , from 1999 to 2007, we grew our oil reserves from 22billion barrels to 37billion barrels which however got stagnated between then and now (2019) with 37.5 billion barrels , meaning that for 12 years, only 500 million barrels were added to the reserves.
“The reason for this is very obvious, lack of required regulatory laws for the sector which has been driving away investors,” the minister said.
According to Sylva, the situation can only be changed if the Senate set machinery in motion and accelerate passage of the PIB to enhance growth and stability of the oil sector.
Meanwhile, the Senate president, ah mad ibrahim law an, has assured that the pib will be passed expeditiously by the 9th National Assembly.
Specifically, Lawan, while declaring the public hearing open, said the bill that had not been passed since 2007, the 9th NASS would break the jinx.
He informed that the PIB was first introduced during the 6th National Assembly, to the 8th National Assembly and it was passed but not granted assented by the President.
“Collaborative approach between the executive and the legislature is being considered in getting the PIB passed and assented to, this time around because the bill is highly needed to attract investors into the sector and widen our oil reserve base,” he said.
On the Deep Offshore and Inland Basin Bill, Lawan has said the Senate will amend the law on Production Sharing Contract (PSC) Act.
He said “it has become absolutely necessary for us to do so as a country so that we can generate more revenues from our endowments.”
