House of Reps Public Hearing Day 2 – Eket community

  • NDDC should be downsized financially, restructured and given specific areas of intervention
  • Monies reduced from NDDC should be given to the host communities
  • remuneration to host communities should be according to specific criteria that take into account the levels of degradation suffered by the communities
  • every host community should be allotted a marginal field

House of Reps Public Hearing Day 2 – Ministry of Petroleum Resources

  • PIFB
    • The PIFB does not tackle profit based erosion and profit sharing
    • The PIFB does not have a robust midstream fiscal system
    • Propose a clear link between product price and crude oil price
    • Consequential financial impact of increasing the tenor of the licences
    • There should be greater conformance with the government’s fiscal policy
  •  PHICB
    • Do not create additional burdens to operators
    • State governments should be involved in funding the community trust
    • Overwhelming burden should be on the part of the government
  • PIAB
    • Generally welcome the concept of a bill which deals specifically with
    • Ability of the Minister to supervise the Ministry is denuded by the bill
    • Who will regulate the regulator?
    • Minister should be involved in the licensing processes
    • For checks and balances the minister should determine when
    • Minister should have the power of approval
    • Acreage should revert to the state
    • Data ownership should reside with the state
    • Review the provisions regarding back-in rights
    • Grant of flared gas dree of costs should be retained by the government
    • Grant of ownership in petroleum should be explicitly stated
    • Grandfather the provisions of Petroleum Production and Distribution (Anti – Sabotage) Act;
    • Align gas flaring issues with the proposed Gas Flaring Bill
    • Review the provisions regarding signature bonuses
    • No provisions on venting
    • Impose scheduled process of asset disposal
    • Same duration for leases in all terrains be maintained
    • Confidentiality clauses should be revisited
    • Unfettered access to data for educational research
    • Who makes the decision to back-in?
    • Clear process on back-in
    • National Strategic Stocks – not a regulatory function but a commercial activity

House of Reps Public Hearing Day 2 – Pandef, PCTS & Ovia Ethnic Nationality

Petroleum Contractors Trade Section

  • Give consideration to global competitiveness
  • Adverse impact of the fiscal terms on deepwater will have a significant impact on jobs in the industry


  • Hostcom should be empowered to set up the National host community trust fund
  • 10% equity contribution with 5% taken from NNPC and 5% from the IOCs

Ovia Ethnic Community

  • Communities to be shareholders in the oil and gas companies
  • Shares should be given to Nigerians
  • Host communities should be properly identified
  • Headquarters of oil companies should be where oil is produced

House Public Hearing Day 2 – Bayelsa State Government

  • 10% equity stakeholding for communities
  • gas flaring penalties to be paid to the host communities
  • headquarters to be located where the oil producing companies have their highest production
  • oil producing companies must establish institutes of training in the states where they are located
  • final solution lies in operating a truly federal government

House of Reps Public Hearing Day 2 – Itsekiri Ethnic Nationality

  • recognise and appreciate the effort taken thus far
  • Host community should be involved in the appointment of trustees
  • recognition should be for ethnic nationalities
  • it should not be based on headcount but on the quantum of resources derived from the community
  • the contribution to the host community fund should be 7.5% of the production of the settlor
  •  recognise the difference between contributions to host communities as opposed to impacted communities

House of Reps Public Hearing Day 2 – Host Community Oil and Gas

  • Incorporate a National host community trust fund
  • trustees should be appointed by the Host Communities of Nigeria
  • existing CSR obligations should not be migrated but continued
  • 10% equity participation to be paid to the Host Community Trust Fund
  • adopt the constitution of the National Host Communities of Nigeria
  • gas flare penalties to be included in the trust

House of Reps Public Hearing Day 2 – NNPC

  • Ownership of oil and gas should be explicitly vested in the State
  • The bills should incentivise the development of oil and gas in the country
  • Simplify fiscal systems for ease of administration
  • Regulatory issues should not be included in the Bill but left for the Regulator
  • The government should be able to clawback where there are excess profits
  • Should not legislate on issues which should be dealt with by contract

House of Reps Public Hearing Day 2 – Nigerian Gas Association

  • Significant improvement on previous bills, but needs to address gas in a way to realise its potential
  • Gas should be treated as an enabler rather than a source of tax revenue
  • If gas is used properly it has a significant leverage effect on the economy
  • Incentives similar to AGFA should be put in place
  • Cost efficiency factor should not apply to gas
  • Gas royalties should be paid in Naira
  • Condensate should be treated as gas
  • A clearer definition of upstream, midstream and downstream
  • Sample calculation tables should be included in the bill to avoid disputes with the FIRS
  • All royalties should be in tranches
  • Marginal fields should be specifically protected