President of the Senate, Ahmad Lawan has advocated for a reduction in
the cost of crude oil production by International Oil Companies (IOC’s)
operating in Nigeria.
Lawan made the call on Thursday in Abuja, while receiving a delegation
of Oil Producers Trade Section (OPTS) in Abuja.
He said that the Petroleum Industry Bill (PIB) at the National Assembly
would make provisions for reduction in the cost of crude oil production.
“The cost of production in Nigeria is a major concern in the oil
industry, my colleagues in the committees that are oil and gas related
know better.
“But from the little I understand, while Saudi Arabia may spend 5
dollars to produce a barrel, we are spending about 30 dollars to produce
same in some cases.
“The time has come for us to ensure that the cost of production is
beaten down to a more meaningful and profitable production cost.
“We must do everything possible together to ensure that the host
communities benefit from wherever they are supposed to benefit from.
” Not only the host community development fund, but in the Niger Delta
Development Commission (NDDC) and other areas of government
intervention,the Amnesty Programme and Ministry of Niger Delta Affairs.
“How do the host communities benefit, because we need to stabilise those
areas so that we have cheaper production costs,” he said.
Lawan, while emphasising the importance of the PIB towards advancing
Nigeria’s economy, assured that the Senate would accommodate the
interest of international investors in the bill.
He, however, decried low inflow of business investors in Nigeria,
attributing it to absence of a legal framework which the PIB sought to
address.
“In the last 20 years, investments coming into Nigeria and this industry
have been so dismal and so small compared to the size of what we have
elsewhere, maybe due to lack of a legal framework – the PIB.
“So, we are very conscious of ensuring a balance and equilibrium between
our interest as a people and a country, that we should have all the
benefits accruing from your operations.
“We need to help you by creating that kind of environment where you’re
able to argue and get the investments flow into Nigeria, instead of
elsewhere. Let me also add, that at the end of the day, this is going to
be a balanced legislation.
“For us as a country, we will not do anything that would jeopardise the
chances of our oil industry competing favourably with other climes.
“So, I want to assure you that we would look into those issues of
concern to you, and we would do exactly what we think will be in the
best interest of Nigeria and also in the interest of the OPTS,” Lawan
said.
Earlier, leader of the delegation, Mr Mike Sangster of Total Nigeria,
said the visit was to engage the National Assembly on areas to modify in
the PIB to ensure its success when signed into law.
“On behalf of all of the industry and my colleagues, I want to say that
we duly support the government’s effort to drive through the Petroleum
Industry Bill.
“We think it is really important that there’s an updated framework for
the industry.
“In our view, we are looking for something that will contribute to
Nigeria, which will bring investment to the country and growth to the
economy, and obviously jobs to the Nigerian people.
“We are looking for something that will protect our existing
investments, and also unlock opportunities so we can further grow our
businesses and production.
“We need to find ways jointly to try and reduce what we see as the cost
premium of operating in Nigeria, so we are looking at ways where the PIB
can help there,” he said(NAN)