Monday 11 October 2021 / 09h00 / Oluwatamilore Adeniran for WebTV/ Header image credit: NBCC
The Nigeria-British Chamber of Commerce (NBCC) as part of its advocacy role in economic policy, trade and development hosted a webinar that discussed the “The Oil Industry Law (PIA): a reset, a setback or a status quo?“.
In a highly interactive session moderated by Olu Verheijen, MD, Latimer Energy, which brought together seasoned experts including Yemisi Awonuga, Partner, Templars Law Firm; Gbite Adeniji, Managing Partner, ENR Advisory; Adewale Ajayi, Partner and Head of Fiscal and Energy Resources, KPMG Nigeria and Ademola Henry Adigun, Independent Oil and Gas Consultant, The 10 Year Vision for the Nigerian Oil and Gas Sector in Industry Law Waiver oil (PIA) was discussed as well as the challenges of the PIA and recommendations for improvement.
Yemisi Awonuga believed that the nation should have a wholesale market, and a system where gas players have an important place. She further explained the ripple effect of the oil and gas sector on road construction, education and security. She called for focused leadership that understands the benefits gas can bring to the nation’s economy.
For Adewale Ajayi, this is cautious optimism, as it depends on a properly implemented PIA that will catalyze activity in the oil sector.
On how the incorporation of Nigeria National Petroleum Company (NNPC) Limited could be a game-changer for the industry, Yemisi said setting up the state oil company to become a stand-alone entity is a not in the right direction. According to her, the PIA contains many interesting provisions which, if properly implemented, can achieve the set goals and create many benefits for Nigerians.
She stressed the need for competent people to lead the transition of NNPC into a commercial entity, stressing that it will be vital for the viability of the state-owned oil company when it is finally listed on the capital market.
Assessing the evolving role of two new regulators and government in the industry, Mr. Gbite Adeniji raised major concerns about the possible conflict between upstream and downstream / upstream agencies. He called for careful management of the relationship and a design that ensures agency independence.
Regarding the implications of having two regulatory agencies in the oil industry, Ademola Henry Adigun noted that there are around 80 countries around the world involved in oil and gas exploration, while 65 have a dual regulatory system.
He argued that having just one regulator could make them too powerful and could create management problems. He further stressed that Nigeria should facilitate an intermediate development strategy.
Providing his take on PIA and growing oil production or reserves, Adewale Ajayi said that when the nation increases its reserves, it can also increase production. Ajayi noted that the needs of the PIA are extremely large, that the country is stuck at 7 million barrels and that Nigeria has not been able to meet the production quota.
For him, the PIA is focused on the problems that have not allowed Nigeria to improve production and increase its reserves – from oil reserves to focusing on gas production.
Speaking on the widely debated issue of oil subsidies in the country, Ademola Henry Adigun said the high cost of living in Nigeria cannot support the cost of oil without a subsidy. He added that there is no clear subsidy plan yet since the nation is still in the transition period. The government according to him will continue to work to determine the ideal price for Nigerians.
In the area of âânet emissions reduction and sustainability, Gbite stressed that it is not just about renewables. He recognized the energy transition from fuel to gas, which is being conducted as a policy in the country. He said the PIA is addressing the issue of gas flaring and noted that once the provisions surrounding it are implemented, Nigeria will experience one of the largest climate programs implemented in the world.
The NBCC speech on the PIA had as its main host, President of the Nigerian-British Chamber of Commerce, Bisi Adeyemi, who said the speech was organized to educate and enlighten members and the public on the new realities that are likely to arise. to burst. following the implementation of the PIA.
Watch the full video of the speech HERE
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