News / Oil & Gas / politics

PIB: Buhari approved 5% for host communities, Minister changed it — Senator

A former Governor of Bayelsa State, Senator Henry Dickson, has exposed how the Minister of State for Petroleum, Timipre Sylva, allegedly proposed 2.5 per cent operating surplus to Host Communities while President Muhammadu Buhari proposed 5 per cent in the Petroleum Industrial Bill.

The Senator made the revelation when he spoke with newsmen on the contentious issue on Thursday in Abuja.

According to Dickson: “Nigerians should ask the Minister of State for Petroleum why (late President Umaru) Yar’Adua proposed 10 per cent, Buhari proposed 5 per cent, but he came to the National Assembly to propose 2.5 per cent.”

The representative of Bayelsa West Senatorial District explained that before the passage of the bill, Sylva and the Group Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari, told the Senators that it is either they agreed to 2.5 percent or no investment. He said: “Senator (George) Sekibo and I were mandated to reach out to other senators who are not in our region and we did.

“We spoke to lot of them and they all supported us for the 5 per cent.

“Before we took that deliberation and the vote, the Minister of State for Petroleum and the GMD of NNPC were invited to give us the executive perspective.

“I don’t know why it was done, but it was not parliamentary, but it was a decision the leadership took and they came supposedly to enlighten us on the technical  aspect of the bill.

“They told us that it is either we agree to 2.5 percent or no investment.

“So, I can feel how most members who had earlier given us their commitment felt when they heard the tough position by the executive.

“The minister said there won’t be investment inflow if we approve anything higher than the 2.5 per cent.…

News / Production

There won’t be petrol subsidy after Buhari signs PIB – Minister

Nigeria will no longer operate the subsidy system to regulate the cost of Petrol once President Muhammadu Buhari signs into law the Petroleum Industry Bill, recently passed by the National Assembly.

The Minister of State for Petroleum Resources, Chief Timipre Sylva, announced this on Monday.

Sylva, who spoke at: “Nigeria/Organization of Petroleum Exporting Countries: 50 Years of Partnership,” press conference in Abuja, said it was best for Nigeria that the Federal Government discontinued subsidy on petrol, stressing that the recently passed PIB had no provision for subsidy.

He said: “This (subsidy removal) is desirable for the interest and growth of Nigeria.

“Of course, everybody will have their perspectives, but from where I sit, I believe that subsidy removal is the best thing for Nigeria, not just the industry.

“So far, the discussions with stakeholders are still ongoing.

“But I will also bring it to your attention that today, when the President assents to the PIB, subsidy will become a matter of law because it is already in the PIB that petroleum products will be sold at market determined prices.

“The removal of subsidy has the potential of unlocking a lot more funds for deployment to development.

“Unfortunately, what we are doing by way of subsidy is like cutting our nose to spite our face.”

 …

News / Oil & Gas

PIB: Anger as Senate slashes host community share to 3% of oil profit

At long last, the Senate yesterday passed the much-awaited Petroleum Industry Bill (PIB), with 30 per cent of profits accruing from Oil and Gas operations by the Nigeria National Petroleum Corporation (NNPC) now to be set aside for exploration of oil in the frontier basins.

All exploration of frontier basins shall fall under the purview of the Upstream Regulatory Commission. Similarly, three per cent has been reserved for the development of host communities.

However, the Senate reached these decisions amid uproar due to disagreements on the right percentage of oil revenue for host communities.

The report of the Senate Joint Committee on Petroleum, which processed the bill, had proposed five per cent for host communities, while stakeholders had in the original bill proposed 10 per cent. But when the Senate began clause-by-clause consideration of the bill, it was reduced to three per cent.

The decision caused a moment of stalemate as Senators from the Niger Delta region rose against it. Senator James Manager (Delta State) proposed an amendment to retain the provision of five per cent in the report but he was defeated.

As Senate President Ahmad Lawan hit the gavel to re-confirm the three per cent host community provision, Senator George Sekibo ((River State) called for a division. His motion challenged the ruling of the Senate President and the floor again became tensed up.

Fearing the consequences of embarking on a division, the Senate leadership swiftly resorted to pleading with Sekibo to withdraw his motion. Senate leader, Yahaya Abdullahi, said the Senate would be ‘heading to Armageddon’ if it allowed that division to happen.

Lawan also supported the Senate leader and preached the gospel of patriotism to Sekibo who later agreed and withdrew his motion.

Chairman of the Senate Joint Committee that processed the bill, Sabo Muhammed Nakudu (APC, Jigawa West), while presenting the report explained that “the Joint Committee’s recommendation recognises the need for the country to urgently and aggressively explore and develop the country’s Frontier Basins to take advantage of the foreseeable threats to the funding of …