Ahead of final consideration and passage of the Petroleum Industry Bill ( PIB ) by both chambers of the National Assembly Thursday this week, leaders of oil and gas producing host communities have declared that anything short of 10% equity share for the communities would not be accepted.
The Presidency had in the executive bill forwarded to both chambers of the National Assembly last year, proposed 2.5% operational cost share for the Host Communities.
Though the proposal was kicked against during public hearings on the bill in February this year by leaders of the oil producing communities but the Minister of State for Petroleum, Timipre Sylva said the 2.5% operational cost proposed as share for the Host Communities was far better than 10% equity share.
What the Bill seeks to achieve
Among other things, the bill seeks to scrap the NNPC and the Petroleum Product Pricing Regulatory Agency (PPPRA).
It also proposes the creation of Nigerian National Petroleum Company Limited-after all the assets and liabilities of the NNPC have been identified by the ministers of petroleum resources and finance.
Similarly, it seeks to establish the Nigerian Upstream Regulatory Commission and the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
Concern raised
At January hearing, many participants raised their concern ranging from higher operating expenditure to gender representation.
One of such concerns came from the host communities who insisted 10% equity shares remained the best for them.
Making the position known in a statement in Abuja Wednesday, President Host Communities of Nigeria Producing Oil and Gas (HOSTCOM) High Chief Benjamin Tamaranebi said the 10% equity share must be given.
The PIB, the statement said, would amount to nothing if the 10% equity share is not approved for the Host Communities.
Titled “Passage of PIB without 10% equity shareholding for Host Communities is a fruitless exercise,” the statement said: “Host Communities of Nigeria Producing Oil and Gas use this medium to reiterate our position, especially on the 10% equity share holding for which we have said that the shares are pro-rata as NNPC and the Oil or Operating Companies to arrive at 10%.
“It should be worthy of note that, in 2008 the 6th and 7th National Assembly proposed 10%, which was subsequently reduced to 5% during the 8th Assembly.
“Unfortunately, the Federal Government in conjunction with the International Oil Companies and their subsidiaries reduced the percentage to 2.5% which we the Host Communities refused and rejected in totality during public hearings on the bill in February this year.
“We therefore appeal to Mr. President and the 9th National Assembly, ahead of the passage of the Bill and also with the Spirit of Love and Unity which is the country’s mantra, consider the plight of the Oil bearing Communities.
“For 63 years we have been the recipients of the negative effect of exploitation and exploration, therefore, for all these years endured the impacts of air pollution, environmental degradation, ecosystem desecration, surface and underground water contamination, Gas flaring, Oil spill and climate change.
“Following the concordance of the Political Class, Opinion Leaders, Governors of the Nine States, evident in the Nine States Houses of Assemblies, Traditional leaders of the region in support of the 10% equity share holding clamored by the Host Communities; it would be sacrilegious to upturn the agreed position of all in the region and other Producing States.
“Therefore, we refuse and reject any attempt to forestall our position which is sacrosanct as it would endanger the peace presently being enjoyed”.
…Sylva, Kyari appear before Senate
Meanwhile, the Minister of State for Petroleum Resources, Mr Sylva, will appear before the Senate Thursday (today).
Also to appear before the Upper Chamber is the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC) Mele Kyari.
Senate President Ahmad Lawan made the announcement at the plenary Wednesday.
He said the duo were invited to brief the Senate on the outcome of the public hearing on the bill as well as provide technical details to the lawmakers.
The briefing, Lawan said, would be done behind closed doors and last about an hour.
He also said Thursday’s plenary will be dedicated to the consideration of the report on the bill.
“Tomorrow, we hold a closed session to listen to the Minister of State for Petroleum Resources as well as the GMD NNPC on some of the details and clarifications on the PIB.
“That closed session will start at 10 a.m. so that we’ll have some time before we start our plenary and tomorrow’s session will be dedicated to the consideration of the PIB for the whole day,” he said at the end of plenary.
“This is for those of us who are not members of the committee to hear some technical details of some of the provisions of the bill. It will also enable us to ask questions and seek clarifications before plenary to consider the report. Every senator is being given a copy of the report on PIB and…the whole of tomorrow will be dedicated to the PIB,” he further said.
Lawan’s comments came a day after the Chairman Joint Committees On Petroleum (Upstream, Downstream) and Gas Resources, Senator Mohammed Sabo (Jigawa South-west), laid the report before the Senate during plenary.
The report was submitted five months after the public hearing on the bill.
