Senate Investigates Poor Implementation Of PIA

The Senate has commenced investigation into the poor implication of the Petroleum Industry Act (PIA).

The red chamber has mandated its committees on Petroleum (Upstream), Down Stream, and Gas to conduct a holistic investigation into the implementation of the Petroleum Industry Act (PIA), with regard to the potential exits of International Oil Companies (IOCs) from Nigeria.

The Senate passed the resolution following its consideration of a motion on the “Urgent need for an inquiry into Implementation of the Petroleum Industry Act (PIA) 2021 with regards to the potential exit of International Oil Companies (IOCS) from Nigeria: Case of ExxonMobil in Akwa Ibom State,” sponsored by Senator Aniekan Etim Bassey (PDP, Akwa-Ibom North-East).

Leading the debate on the motion, Bassey noted how the discovery of gas and oil in commercial quantities in Nigeria led to the entry of international oil companies (IOCs), in Nigeria with the intention of advancing the sector’s exploration, development, and production.

According to him, “the IOCs went into Joint Venture (JV), contracts with the federal government through the NNPC (Now NNPC Ltd).

RELATED

Singer Darey Art Alade, Wife Escape Unhurt After Their Car Catches Fire On 3rd Mainland Bridge

6 minutes ago

Civil War Was For Unity, Not Hatred — Gowon

37 minutes ago

In the case in point, the NNPC holds 60 per cent while ExxonMobil holds 40 per cent shares in the JV between the NNPC and ExxonMobil.

The responsibilities for the injection of capital expenditure into the JV and the proceeds of the same are shared in corresponding proportions.

“ExxonMobil offered to sell its entire onshore and shallow water facilities and business in Akwa Ibom State which had established fields and high-quality operations with highly skilled local operational teams, track record of safe operations, high production rate as well as a crucially extensive footprint in Akwa Ibom State, preparatory to its exit from its onshore and shallow water operations in the state and to focus of deepwater production.

“The NNPC has the Right of First Refusal (RFR) and has notified ExxonMobil of its intention to exercise that Right of Pre-emption on ExxonMobil’s planned sale of its entire asset in Nigeria’s onshore and shallow waters, but ExxonMobil proceeded to seal a deal with Seplat Energy Plc for that purposes.”