Reps suspend PIB report over contentious clause

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Division among members of the House of Representatives over the provison of Clause 209 of the Petroleum Industry Bill (PIB) has led to the suspension of the consideration  of the report of the Ad-hoc Committee on PIB.

The lawmakers were at variance over how much should accrue to the country from exploratory licences issued to prospective companies in the petroleum industry.

The arguement degenerated into a North – South issue after the contentious clause was found missing in the report.

This led to the suspension of the consideration of the report till a Committee saddled with the responsibility of examining the grey areas reports back to the House next week.

The observation of Kyari Gujbahu of the All Progressives Congress (APC), Borno, centered on the clause that deals with holders of exploratory licence to prospective operators in the industry and the monetary benefit therein.

According to him, as contained in the draft report, revenue from activities of oil companies to be used for the take off of River Basins exploratory activities was pegged at $4 per barrel of gas and 20 cents for a barrel of crude.

He said: “In the draft report which was referred for final compilation by committee, the sharing formula between government and oil companies for the development of River Basins across the country was $4 per barrel.



“I now wonder why that has disappeared from this clause as contained in this report.”

Abdurahman Terab (APC, Borno) supported him, saying, “This suggestion is not a new thing in play in countries where there is oil. It’s been in use in Chad, Niger and even Ghana.

“This fund is not meant to develop the areas where the Basins are located but meant for the development of the Basins for the purpose of exploration of resources therein in furtherance of the nation’s economic growth”.

On the other hand, Sokonte Davies (APC, Rivers) disagreed noting that it is impossible to peg it at $4 per barrel as it would have been too much to be used as a take off fund.

“Even the 20 cent per barrel is a lot of money that can be used to kick start any exploration activity anywhere.

“If we must do it, let’s leave it at 20 cents per barrel of gas and 2 cents per barrel of crude”.


Source: the Nation online

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