By Adewale Sanyaolu

The Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote has stated that the Petroleum Industry Act (PIA) 2021 will enable the development of host communities, reduce funding pressure on government, boost capacity development in identified skills gaps, and stimulate investment in Nigeria’s oil and gas industry.

He made the assertion at the Association of Energy Correspondents of Nigeria (NAEC) 2021 Strategic International Annual Conference held recently in Lagos.

Speaking through the Director, Monitoring and Evaluation, Mr. Tunde Adelana, Wabote said the PIA will foster development of critical infrastructure and enhance the utilisation of gas resources for national development. He stated that the PIA provides legal governance, regulatory and fiscal framework for the oil and gas industry in Nigeria, and development of Host Communities.

The Act, he said, contains 5 Chapters, 319 Sections, and 8 Schedules dealing with Rights of Pre-emption; Incorporated Joint Ventures; Domestic Best Price, and Pricing Framework.

According to him, the PIA will bring about the formation of NNPC Limited, its Functions; Gas Flare and Gas Infrastructure; Midstream Operations; Fiscals, Taxes, and Royalties; and Host Community Development with a bid to engage the business of renewables.

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Wabote noted that the PIA Petroleum Profits Tax (PPT) replaces the National Hydrocarbon Tax, alongside royalties reduced for onshore areas, shallow water, deep offshore and frontier basins, and natural gas.

Speaking on other aspects of the oil and gas value chain, the Wabote indicated that the midstream activities would compel  operators within the sector to ensure the National Strategic Stock, enhance the decommissioning and abandonment fund and eliminate government’s regulation on pricing of petroleum products.

He added that the Act will ensure gas flaring penalties, establishment of Midstream Gas Infrastructure, and special regulation for Midstream and Downstream Gas Operations as well as Natural Gas Prices for strategic sectors.

In all, he maintained that the Act will boost local content implementation in the oil and gas industry.

In a presentation on “Boosting the Nation’s Economy through Gas Utilisation”, the Managing Director and Chief Executive Officer of Nigeria LNG Limited, Dr. Philip Mshelbila, discussed  the context of energy transition in the light of cleaner, cheaper and sustainable energy.

The NLNG boss who was represented by the Manager, Corporate Communication and Public Affairs, Mrs. Sophia Horsfall, stated that giant technological advancements have been made in the area of renewable energy and battery storage.