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Friday, June 14, 2024

Another Oil Crisis May Soon Occur – PENGASSAN Report

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The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGESSAN) has warned that the oil sector will soon be extreme unstable as a result of the outgoing 7th Assembly to pass the Petroleum Industry Bill (PIB).

PENGASSAN, speaking via a recent report made available to Punch availed that the delay in th passage of the bill will elicit anxiety within the host communities of oil companies who ought to benefit from the 10 per cent Host Community Fund.

The PIB was passed by the House of representatives but was not passed by the Senate and is expected to clarify rules and procedures that will instill good governance, transparency and accountability in the oil and gas sector.

The report said: “There is the need for an all-inclusive stakeholders’ summit involving industry operators/players; representatives of the Presidency; National Assembly; security and service chiefs; state governments; ministries, departments and agencies of the government; the Nigerian National Petroleum Corporation; the Nigerian Extractive Industry Transparency Initiative; revenue offices; Nigeria Labour Congress/Trade Union Congress; the Nigeria Union of Petroleum and Natural Gas Workers/PENGASSAN, among others.

“The summit should be aimed at harmonising the grey areas in the bill and ensuring its accelerated passage in a fair and equitable manner. While the PIB is being attended to, government must resolve the foggy issues in fiscal stability and predictability of the extant laws and the regulatory framework; uncertainty around the portfolio assets leasing to allow the operators the first right of renewal; and pending cash call on the JV operation expenditure and improved funding of capital projects.”

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