Some experts in the Nigerian oil and gas industry on Monday called on the leadership of the new National Assembly to review the Petroleum Industry Bill (PIB) passed by the 7th House of Representatives.
Seyi Gambo, former Public Relations Officer, Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), said that the bill had generated mixed reactions.
He said that the proposed higher taxes in the PIB would make exploration of oil and gas uneconomical for International Oil Companies (IOCs), adding that this might lead to low investment by the IOCs.
The expert noted that with the current draft of the PIB, it would be highly unlikely that IOCs would invest in offshore and domestic gas projects in the country.
Gambo expressed worry over the increase in gas tax from 30 per cent to 80 per cent, royalty payment from seven per cent to 12.5 per cent for big producers and the minimal tax allowances for investment incentives on gas.
Mr Chinedu Okoronkwo, National President, Independent Petroleum Marketers Association of Nigeria (IPMAN), said that one of the objectives of the PIB is to enhance government’s revenues through better tax codes and restructuring of joint ventures between the Nigerian National Petroleum Corporation (NNPC) and oil majors.
Okoronkwo said that IOCs operating in Nigeria had also expressed their opposition to certain sections of the fiscal term of the PIB over the years.
He said that they had continued to raise concerns about the proposed fiscal regime in the PIB which caused some companies to sell some of their oil blocks and suspended new investments, especially in deep offshore areas where they had been complaints that the PIB imposed stiffer conditions on operators.
Seyi Gambo, former Public Relations Officer, Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), said that the bill had generated mixed reactions.
He said that the proposed higher taxes in the PIB would make exploration of oil and gas uneconomical for International Oil Companies (IOCs), adding that this might lead to low investment by the IOCs.
The expert noted that with the current draft of the PIB, it would be highly unlikely that IOCs would invest in offshore and domestic gas projects in the country.
Gambo expressed worry over the increase in gas tax from 30 per cent to 80 per cent, royalty payment from seven per cent to 12.5 per cent for big producers and the minimal tax allowances for investment incentives on gas.
Mr Chinedu Okoronkwo, National President, Independent Petroleum Marketers Association of Nigeria (IPMAN), said that one of the objectives of the PIB is to enhance government’s revenues through better tax codes and restructuring of joint ventures between the Nigerian National Petroleum Corporation (NNPC) and oil majors.
Okoronkwo said that IOCs operating in Nigeria had also expressed their opposition to certain sections of the fiscal term of the PIB over the years.
He said that they had continued to raise concerns about the proposed fiscal regime in the PIB which caused some companies to sell some of their oil blocks and suspended new investments, especially in deep offshore areas where they had been complaints that the PIB imposed stiffer conditions on operators.
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