EDEGBE ODEMWINGIE reports on fresh lobbying and a cocktail of political/ethnic strategic meetings held prelude to this week’s scheduled deliberation by the House of Representatives on the new Petroleum Industry Bill (PIB).
The freshly presented Petroleum Industry Bill (PIB) put mildly has suffered a healthy dose of delays since its introduction. The seventh legislative session undoubtedly chases history if it can see through the successful passage of the huge anticipated Bill, many will agree.
The ambitious 223-page PIB (2012) which seeks to redirect Nigeria’s oil sector has been years in the making and several other versions have been inconclusively debated by the National Assembly.
Signs of things to come are already being seen. For the second time, the House of Representatives last Tuesday resolved to stay debates on the general principle of the PIB till this week to enable its leadership receive briefing from the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke on the contentious Bill.
In July, federal lawmakers described as “curious” President Goodluck Jonathan’s decision to forward the PIB on a day lawmakers proceeded on their two-month long break.? They described Jonathan’s move as mischievous and a calculated attempt to blackmail them.
House Speaker, Aminu Waziri Tambuwal, in his submission insisted any delay in the treatment of the PIB was solely the fault of the Presidency.
Also, a cocktail of meetings on the PIB have been convened (overt and clandestine) prior to this week debates on the PIB. Notably, a meeting of the House of Representatives northern caucus was reportedly held mid-year in Ghana. Just yesterday another meeting was convened in Abuja by the House of Representatives, Leader of Opposition, Femi Gbajabiamila for all opposition parties to reach a unified understanding and position on the PIB
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Northern agenda
Meanwhile, federal lawmakers have agreed to merge the PIB with a similar private Bill seeking the creation of the National New Frontier Exploration Agency – touted as a largely northern driven bargain as part of ongoing ethnic/political positioning on the PIB.
The new Bill to establish the exploration agency which was sponsored by Hon. Kaka Kyari Gujibawu (Borno/PDP) in part, will pursue exploration and production of oil and gas in the frontier of chad basin, Dahomey basin, Imo basin, Benue trough and Sokoto basin.
Tambuwal at last Tuesday’s plenary directed members wishing to contribute to the debate to submit their names to the chief whip or deputy whip preparatory for this week’s deliberation.
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Filibuster
Opponents of the PIB are set to adopt the deviously efficient filibustering technique typically employed in several parliaments as delay tactic to frustrate in Nigeria’s case, the passage of the PIB.
A filibuster is a type of parliamentary procedure where an individual(s) uses obstructionist tactics, especially prolonged speechmaking, for the purpose of delaying legislative action. The action in some cases can outrightly prevent a vote on a given proposal. It is sometimes referred to as talking out a bill, and characterized as a form of obstruction in a legislature or other decision-making body.
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PIB Highlights
Objectives
* Enhance exploration and exploitation of petroleum resources in Nigeria for the benefit of the people
* Optimize domestic gas supplies, particularly for power generation and industrial development
* Deregulate and liberalise the downstream petroleum sector
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Tax
* Oil companies will pay tax on a percentage of the chargeable profits as follows: 50 per cent for onshore and shallow water areas; 25 per cent for frontier acreage and deep water areas.
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Petroleum Host Communities Fund
* Oil companies will contribute into the fund for Niger Delta communities 10 per cent of net profits – less royalties, deductions and allowances, hydrocarbon tax and income tax. The host fund will cover the cost of repairs to any oil facilities damaged by vandalism, sabotage and civil unrest.
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New Institutions
* The National Oil Company (NOC) will hold certain assets and liabilities of the state-owned Nigerian National Petroleum Corp (NNPC). The assets and liabilities held by the NNPC on behalf of the government, except the interests in the unincorporated joint ventures and Nigerian Gas Company shall be vested in the NOC within 12-24 months
* National Petroleum Assets Management Corp will own and manage many of NNPC’s assets not handed to the new NOC
* National Gas Company will divest up to 49 per cent of shares to the stock exchange within six years of being incorporated
* Upstream Petroleum Inspectorate will regulate oil and gas production, enforce laws, grant licenses and carry out bid licensing rounds
* Downstream Petroleum Regulatory Agency takes over from the current Petroleum Products Pricing Regulatory Agency (PPPRA).
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Other Key Highlights
* The pricing of petroleum products in the downstream product sector will be deregulated to ensure a market related pricing, in essence removing the federal government sponsored fuel subsidies.
* The president will have the power to grant oil licenses
* Gas flaring will be banned at a date to be decided by the oil minister
*Confidentiality clauses for licences, leases, agreements or contracts for upstream petroleum operations in respect of any payments of royalties, fees and bonuses of whatever nature, and taxes, shall be void and of no effect.
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Incessant queues
Wednesday, the House detailed its standing Committee on Petroleum Resources (Downstream) to investigate fuel scarcities (especially petrol) recorded in many parts of the country.
Against the backdrop of the official N97 pump price for petrol, federal lawmakers expressed worry over irregularities of petrol prices in different states – a breach of the mandate of the federal government’s Petroleum Equalisation Fund (PEF).
PEF was established mainly to administer uniform prices of petroleum products throughout the country through payment of bridging claims to local oil marketers.
Ruling on a motion sponsored by Bashir Babale (Kano/PDP), House Speaker directed the Dakuku Peterside led Petroleum Resources (Downstream) panel to undertake the investigation of the lingering fuel scarcities and submit its probe report on Wednesday at plenary.
Meanwhile, a Bill seeking to amend the National Oil Spill Detection and Response Agency (Establishment) Act, 2006 on Wednesday, passed second reading.
The amendment if successful, will compel oil exploration companies operating in the country to pay compensation to communities affected by oil spills.
The Bill was referred to the House Committee on Environment for further legislative inputs.??
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