NNPC’s new Group Managing Director, Mr. Andy Yakubu announced that Nigeria’s oil production has increased from 2.4 million barrels per day to 2.7 million barrels per day. This was primarily attributed to the improving security situation in the Niger Delta Area. The Punch newspaper report can be found here.
Nigeria’s Petroleum Minister, Mrs Diezani Alison-Madueke is reported by Bloomberg commending the potential benefits of the PIB for investment in the Nigerian oil and gas industry. According to Alison-Madueke, the PIB is designed to create “a fair balance between small and big operators in the same terrain.” The Minister’s comments are likely to refer to the provisions for Production Allowances in Schedule 5 of the PETROLEUM INDUSTRY BILL 2012, which give producers an allowance in accordance with their levels of production. As an example, under those provisions, small oil producers in onshore areas that produce less than 27,300 barrels of oil per day would be entitled to oil production allowances of the lower of US$ 30 per barrel or 30% of the official selling price.
Ifeanyi Nwabugu of the Nation writes on the importance of the Petroleum Industry Bill and the need to fast track its passage here.
Odujinrin & Adefulu’s Energy Practice Team announces the launch of its new website/blog www.petroleumindustrybill.com. The blog will publish up to date information and analysis on the PETROLEUM INDUSTRY BILL 2012 approved by the Federal Executive Council and forwarded to the National Assembly in July 2012.