Port Harcourt — The Executive Secretary of the Nigerian Content Development and Monitoring Board, Engr. Simbi Wabote, says the Petroleum Industry Act 2021, will enable the development of host communities, reduce funding pressure on government, develop local capacities in identified skills gaps and stimulate investment in the country’s oil and gas industry.
Wabote explains that the PIA will foster the development of critical infrastructure and enhance the utilization of Gas resources for national development; adding that the Act provides legal governance, regulatory and fiscal framework for the oil and gas industry and development of host communities.
The NCDMB boss who stated this at the just concluded National Association of Energy Correspondents’ 2021 Strategic International Annual Conference in Lagos, said he Act contains five Chapters, 319 Sections, and eight Schedules dealing with Rights of Pre-emption; Incorporated Joint Ventures; Domestic Best Price, and Pricing Framework.
According to him, “the PIA will bring about the formation of NNPC Limited, its Functions; Gas Flare and Gas Infrastructure; Midstream Operations; Fiscals, Taxes, and Royalties; and Host Community Development with a bid to engage the business of renewables.”
Wabote Speaking through the Director, Monitoring and Evaluation, Mr. Tunde Adelana, noted that the PIA Petroleum Profits Tax replaces the National Hydrocarbon Tax, alongside royalties reduced for onshore areas, shallow water, deep offshore and frontier basins, and natural gas.
Speaking on other aspects of the oil and gas value chain, the Executive Secretary indicated that the midstream activities behoove operators within the sector to ensure the National Strategic Stock, enhance the decommissioning and abandonment fund and eliminate government’s regulation on pricing of petroleum products.
He also added that the Act will ensure gas flaring penalties, establishment of Midstream Gas Infrastructure, and special regulation for Midstream and Downstream Gas Operations as well as Natural Gas Prices for strategic sectors. In summary, he maintained that the Act will boost Local Content implementation in the oil and gas industry.
In a presentation on “Boosting the Nation’s Economy through Gas Utilization”, the Managing Director and Chief Executive Officer of Nigeria LNG Limited, Dr. Philip Mshelbila discussed the context of energy transition in the light of cleaner, cheaper and sustainable energy.
The Chief Executive who was represented by the Manager, Corporate Communication and Public Affairs, Mrs. Sophia Horsfall, stated that giant technological advancements have been made in the area of renewable energy and battery storage.
“However, renewables alone cannot meet the energy demand in a sustainable manner and natural gas is the next cheapest option. It is the smart option to renewables”, Dr. Mshelbila asserted.