This summary has been provided to us by Sandra Gini.
- Hearing opens at 11:20am
- National Anthem and opening prayers
- Opening remarks by Senator Marafa
- Senate President Bukola Saraki delivers opening speech and declares the hearing officially open.
- Senator Alaosadura thanks the Senate President
Continue reading “Senate Public Hearing Day 1 – Summary of proceedings before live blogging”
The Senate public hearing on petroleum industry reforms was closed at 2:00 pm by the Chairman of the Joint Committee, Senator Marafa who emphasised the resolve of the National Assembly to pass these bills imminently.
We will publish a summary of the presentations given on Day 1 before our live blogging commenced.
The Senate public hearing commenced at 12:40
Natural Resource Governance Institute – PIAB
- include checks in the presidential discretionary award of licences;
- introduce beneficial ownership;
- emphasise issues of transparency in asset register;
- clear guidelines on bidding rounds.
Petroleum Training Institute Effurun
- want to be included in the bill
Nigeria Gas Association
- fiscal terms to be reduced and incentives to be provided for gas development;
- AGFA should be retained;
- cost efficiency factor should not be applied to gas development;
- need for clarity in the definition of upstream and midstream;
- worked examples should be included in the fiscal bill;
- specific provisions for marginal fields and indigenous companies.
- third party access may discourage investment;
- bill does not make provisions for entities in Free Trade Zones;
- clarity on the host community provisions;
- clear tenor for the advisory committee in the petroleum host community bill.
Below are links to a few articles published on the petroleum industry reforms today.
Joint memorandum between Delta State government and its host communities
- settlor and communities should appoint the trustees
- trusts should be established within 3 months
- 5% of gross revenue;
- 50% of gas flaring penalties should be given to the host communities;
- take off grant to include 20% of license fee;
- objective should include creation of employment opportunities;
- members of the board of trustees should serve for only 4 years;
- secretary of the board of trustees should come from the host state;
- allocation of a specific sum for traditional rulers and for the management of the fund;
- surveillance contractors should be appointed in consultation with the host communities;
- state governments should be involved in dispute resolutions;
- legacy projects should be split into phases;
We arrived late at the Senate’s public hearing on the three public hearings today. We will give a summary of all the presentations earlier.
Ministry of Petroleum Resources – Fiscal Bill
- many fiscal abuses in the current Fiscal Bill;
- lack of fiscal neutrality in the bill;
- bill does not sufficiently reward the domestication of oil
- more reflection on the powers of the Minister;
- opportunity for checks & balances over the Commission by the Minister;
- there should be a requirement for bid rounds every 3 – 5 years;
- the decision on bid round should be a political decision;
- Minister to give guidelines;
- who regulates the regulator?
- provisions for acreages to the commission to be amended and explicitly granted to the state;
- more provisions for contract transparency;
- gas flaring provisions are scaled back in this bill;
- national strategic stocks should be handled by a regulated entity;
It has been just over a week since the Public Hearing at the House of Representatives. Enough time to have mulled over some of the issues raised by investors, the Federal Government & the public on the Petroleum Industry Administration Bill, the Petroleum Industry Fiscal Bill & the Petroleum Host & Impacted Communities Bill. Here are 5 takeaways from the hearings. Continue reading “House of Reps Public Hearing – A Few Takeaways”