The call for certainty in fiscal reforms taking place in the oil and gas industry was a major focus of the recently concluded Nigeria oil and Gas Exhibition,(NOG). The participants were very vehement in their assertions that unless the country is sure of what it wants and also ready to create a win win situation between it and other investors, our production would remain stagnant.
This call is not new, as it as old as the time when the government initiated the Petroleum Industry bill when it became clear to the oil and gas investors that the she wants to increase it stakes in terms of revenue coming out from the oil and gas production.
Fiscal certainty, which would serve as incentive to global investors seeking to unlock billions of potential investments in Nigeria’s oil and Gas sector is their demand.
The steps being taking by the government is really not bad and this is expected because to meet other social and economics demands it needs more revenue. But in doing so it must make sure the economy it wants to build is not hurt by her actions. This is why it must listen to the calls by the international oil companies that have be asking her to take a critical look at some of the fiscal terms in the current PIB and still have some discussing with them before it is passed into law.
Clearly there are more countries I even in Africa these day that have better enabling environment where there has been oil discoveries that are attra
Government lack of serious could cost the country to loss great opportunities that can still be explored now to boost her production before it is too late. As any attempt to foot drag could result in investors taking their money to other places where they are equally need
Apart from concerns of fiscal certainty,the stakeholders also urged the federal government to ensure reforms being done through the Petroleum Industry Bill are wholistic and attract international investors into Nigeria’s oil and Gas sector.
Nigeria’s deputy Minister of Petroleum Resources,Emmanuel Ibeh Kachikwu has repeatedly said that Nigerian Oil and Gas sector requires to the tune of $100bn to open up investment into the sector,and attract more capital inflow into the nation’s economy.
Paul McGrath-Chairman and managing director Mobil producing Nigeria unlimited said, “To unlock investment potentials in the country,we need fiscal certainty to attract global industry players with huge capital into Nigeria’s oil rich resources”
There is the need to have the right framework in place to have global competitive fiscal price policies in place to help lift the opportunities in the sector. There is no doubt that Accord to the when we talk about investment potential in the country; there is a huge potential in that regard.
There are works that has been done on the Petroleum Industry Bill, both by the executive and the Legislature which needs to have an end result which is inadvertently to attract international investment.”
The Nigerian government must be ready to have reforms that will unlock the potentials in the sector and also which should continue to attract international investments.”
Also, Jeff Ewing,Chairman and managing director,Chevron Nigeria Ltd, acknowledged that the federal Government has been making efforts on competitiveness and on the ease doing business, and to enable them have a wider understanding of the implication of the competitiveness of their Industry.
The IOCs agreed that the government has made some good steps on the Petroleum Industry Bill. They said they are also looking forward to continuous engagement to ensure Nigeria continues to grow investment in the deep water and Gas.
The government needs to make joint venture JV in Gas and deep water deals should be made to draw more investment into the Nigerian economy.
There is need to have a fiscal policy to drive investment in the sector and also fiscal policy terms to drive deep water Gas investments, while pushing those Gas reserves into market place.
