PIB will fail without strong regulation – Avuru

10 December 2012, Sweetcrude, Abuja – The Managing Director/CEO of SEPLAT Petroleum Development Company, Mr Austin Avuru says the oil industry needs “a strong, independent regulator” for the Petroleum Industry Bill (PIB) to work.

He made the case at the 18th Nigerian Economic Summit, held in Abuja where he presented a paper titled, “The PIB and the Future of Nigeria’s Oil Industry.”

Avuru noted, however, that controversy has dogged the reform process in the
oil and gas sector because of a misalignment of priorities and reduction of the whole PIB process to “a debate about fiscal provisions.”

The Seplat boss, a Fellow of the National Association of Petroleum Explorationists (NAPE), told the gathering that the PIB is “the result
of an elaborate institutional reform process for the oil & gas sector, initiated in 2000″.

He cited examples from successful reform efforts in the telecoms, power, aviation and maritime industries, where he pointed out that reforms have worked largely due to strong regulators like “the NCC for telecoms and NERC for power as well as a focus on private sector as a source of new investments”.

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  • We agree the oil and gas industry needs a strong regulator. However, it is going to be difficult for a strong operator to operate successfully owing to the stronger politics of patronage played in the country.

  • Only when our leaders show the will and zeal towards a policy in Nigeria, the oil and gas industry has been captured by the corruption hawks of our time and they don‘t desire a change like we saw in other sectors…. God is our only help!!!