Live Blogging the Senate Public Hearing

Good morning. Day 2 of the public hearing starts with the representative of the Rivers State Government. Points made include:

  1. Petroleum should be vested in the Federal Government and the petroleum producing states;
  2. Petroleum producing states should nominate members to the Upstream Petroleum Regulatory Commission;
  3. The Upstream Regulatory Commission should not be responsible for frontier exploration;
  4. Midstream Gas Infrastructure Fund should be expunged;
  5. Petroleum data should belong to both the federal government and the government of the petroleum producing states;
  6. NNPC’s shares should not be sold and any decision regarding the disposal of assets should be made with the approval of the petroleum producing states.

The second set of presentations is being given by the Host Community Association:

  1. Host communities as a critical stakeholder should be granted a 10% equity position in all licenses – 5% from the government and 5% from investors;
  2. Gas flaring fees and penalties should be transferred to the host communities.
  3. The Bill should ensure that there is host community participation in environmental issues;
  4. Ensure that the principles of sustainable development is enshrined in the Bill;
  5. Establish a national body called Oil and Gas Producing Development Commission, which should be replicated at the States and Local Government levels;
  6. 25% of Royalties from Upstream production should go to the Host Communities;

The representatives of DAPPMAN:

  1. Expunge the levy imposed on the wholesale price of petroleum products;
  2. Regulatory decisions should be made on a level playing field;
  3. Board of the Authority should include senior industry representatives;
  4. All provisions in relation to the regulation petroleum product pricing should be deleted and prices should be determined by the market;
  5. Tariff regulation also not necessary because there is sufficient competition in the petroleum products market;
  6. PIB should include minimum license terms for the downstream sector;
  7. Competition regulation should be exercised by the Federal Competition regulator;
  8. Third party access provisions should only relate to uncontracted capacity;
  9. Storage depots should not be required to contribute to the host community funds as they are low margin businesses.

National Oil Spill Detection and Response Agency:

  1. Concerned about the powers granted to the Commission and the Authority in relation to environmental matters;
  2. Environmental functions should remain in the hands of the Ministry of Environment;
  3. Environmental management plan provisions conflict with the general environmental impact assessment provisions.

Petroleum Technology Association of Nigeria:

  1. This bill does not promote local content;
  2. The Commission and the Authority should be merged;
  3. The power to revoke and assign licenses should not be delegable;
  4. NCDMB and PETAN should be included in the board of the Commission and the PETAN should be included on the board of the Authority.


  1. The Bill should follow the existing government policy and adopt the single regulator model;

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