• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
Nairametrics
No Result
View All Result
Home Sectors Energy

IOCs reject deep water provisions in PIB

Chike Olisah by Chike Olisah
January 27, 2021
in Energy, Spotlight
Total Nigeria Plc
Share on FacebookShare on TwitterShare on Linkedin

International oil companies in Nigeria have expressed their fears that proposals in the long-awaited Petroleum Industry Bill (PIB) will discourage investment in new offshore projects.

They said that the bill, which is before the National Assembly for consideration and passage, is seen as unfavourable for deepwater projects, and urged the Federal Government to offer royalty relief programmes.

This disclosure was made by the Managing Director/Chief Executive of Total Exploration and Production Nigeria Limited, Mike Sangster, to the lawmakers during a public hearing on the PIB in Abuja, according to Bloomberg.

RelatedStories

Dangote Refinery

Dangote refinery begins gasoil exports to West African countries, as imports from Europe decline 

July 2, 2024
3 Controversial National Assembly bills of 2021 

3 Controversial National Assembly bills of 2021 

January 2, 2022

READ: PIB may be passed by first quarter of 2021 – Sylva

What the Managing Director of Total told lawmakers

Mike Sangster, in his statement, said, “Our review of the Petroleum Industry Bill shows that deepwater provisions do not provide a favourable environment for future investments and for the launching of new projects.”

While speaking on behalf of the Oil Producers Trade Section (OPTS), a group of 30 oil producers that include Royal Dutch Shell, Exxon Mobil Corporation, Chevron Corporation and Eni SpA, which he also chairs, Sangster said that to encourage new investment, the proposed law should grant deepwater oil projects full royalty relief for the first 5 years, or a graduated royalty programme.

READ: NNPC GMD says AKK pipeline, Nigeria’s biggest gas project is 15% complete

Making a presentation on gas, Sangster said, “The PIB should provide a clear path for transitioning to a free market-based pricing, not add additional compliance conditions on domestic gas delivery obligations as a precondition for export gas supply.”

On the preservation of terms of existing investment, Sangster said, “We recognize the government’s right to change laws but the PIB must explicitly preserve rights. Operators should be allowed to retain the entirety of their lease areas and new terms should apply to new contracts, licenses and leases.”

He noted that Nigeria was facing growing competition for new investments, as the country was able to attract only $3 billion or 4% out of the $70 billion that was spent on new projects in Africa between 2015 and 2019.

READ: Oil firms’ debt status: How it affects Nigerian banks

What you should know

  • The passage of PIB, which has faced a couple of setbacks for almost 2 decades, has been held up by political disagreement and objections from International oil companies who say that government is asking for an excessive increase in revenue.
  • The bill seeks to introduce pertinent changes to the governance, administrative, the regulatory and fiscal framework of the Nigerian oil and gas industry in order to ensure transparency, strengthen the governing institutions and attract investment capital, among other objectives.
  • The oil firms desire a critical look into their concerns about the PIB as at least half of Nigeria’s total crude output is from offshore oilfields, helping to offset declining production from mature onshore assets. But recent discoveries have remained undeveloped in the face of regulatory and legislative uncertainty.

READ: UK court dismisses $1.1billion Nigerian corruption lawsuit against Shell, Eni


Follow us for Breaking News and Market Intelligence.
Tags: Business NewsPetroleum Industry BillPIBTotal Exploration and Production Nigeria
Chike Olisah

Chike Olisah

Chike was a banker with over 11 years experience in retail and commercial banking, risk management, treasury portfolio management and relationship management. He also acquired some experience in financial management and do have some special interest in investment analysis and personal finance. He had stints with financial institutions like the former Intercontinental Bank and Fidelity Bank.

Related Posts

Dangote Refinery
Energy

Dangote refinery begins gasoil exports to West African countries, as imports from Europe decline 

July 2, 2024
3 Controversial National Assembly bills of 2021 
Budget

3 Controversial National Assembly bills of 2021 

January 2, 2022
Gas is the new petrol - FG to Nigerian car owners, intervention fund, NCDMB, output cut, Petroleum Industry Bill to be passed by mid-2020, says Sylva, FG discovers crude oil in north, says there’s more , OPEC, non-OPEC countries to meet as Saudi, Russia price war affects Nigeria’s budget, FG considers fuel price reduction, OPEC deal: Nigeria to generate additional $2.8 billion revenue as FG reacts
Business News

Minister says FG will hold equity in trust for federation in new NNPC Limited

August 20, 2021
PIB: Unlocking investment opportunities in the petroleum sector
Op-Eds

PIB: Unlocking investment opportunities in the petroleum sector

August 17, 2021
NEITI says Nigeria lost $2.77 billion to oil theft in 2019
Business News

PIB signing shows government’s resolve to strengthen governance processes – NEITI

August 17, 2021
Why it could get worse for Nigeria’s oil and gas sector in 2023 
Energy

Six things you need to know about the PIB signed by President Buhari

August 17, 2021
Next Post
Microsoft snubs Nigeria for SA in locating data center; What Nigeria stands to lose

High demand for Azure, homework tools boost Microsoft earnings

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Emple
nlng
first bank








DUNS

Recent News

  • Canadian province shuts family reunification intake for spouses, adult dependent children until June 2026 
  • Lagos State orders immediate halt to reclamation activities at Orange Island over drainage violations 
  • FG sets new rule mandating SON certificate for contractors bidding on public projects

Follow us on social media:

Recent News

Canada

Canadian province shuts family reunification intake for spouses, adult dependent children until June 2026 

July 12, 2025
Lagos State orders immediate halt to reclamation activities at Orange Island over drainage violations 

Lagos State orders immediate halt to reclamation activities at Orange Island over drainage violations 

July 12, 2025
  • iOS App
  • Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer
  • Copyright Infringement

© 2025 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Social Media Auto Publish Powered By : XYZScripts.com
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
    • Economy
    • Nairalytics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Company Results
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Agriculture
    • Aviation
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Health
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Renewables & Sustainability
    • Tech News
  • Business News
    • Budget
    • Public Debt
    • Funds Management
    • Tax
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
    • Research Analysis
  • Recapitalization
    • Access Holdings Offer
    • Fidelity Bank Offer
    • GTCO Offer
    • Zenith Bank Offer
  • Login
  • Sign Up

© 2025 Nairametrics