From Adanna Nnamani, Abuja
The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has thrown its weight behind the allocation of three per cent of the oil companies’ operating expenses (OPEX) to the trust fund created for host communities in the recently passed Petroleum Industry Bill (PIB) currently awaiting presidential assent.
Speaking to journalists at the launch of “PENGASSAN Security Awareness Campaign” in Abuja at the weekend, the National President of the association, Mr Festus Osifo, said that the three percent operating expenditures for host communities was a good start regardless of the fact that the figure is mired in controversy.
He added that host communities can seek for redress in the long run but should not allow the issue to be bogged down in disputes. On deregulation, Osifo said the association had never been against the policy as long as it is not dependent on importation.
The association also condemned incessant attacks on its members, stating that it has decided to partner with the various law enforcement agencies to create awareness and find ways to strengthen the security system of the country.
Osifo said: “When people speak about percentage, they forget to talk about the basics. The question to ask is: three per cent of what? For example, if it is three per cent of profit, it is different from three per cent of the Capital Cost (CAPEX) and different from Operational Cost (OPEX).
“So, if it is three percent of profit, it means that any year there is no profit, it means there will be no three per cent. But in this case, the National Assembly is talking about three per cent of operating expenditure.
“That means the three percent is relatively constant. To me, the National Assembly could have done better to a minimum of five per cent, but looking at where we are coming from, it was zero percent before now, now it is at three percent.“
For us in PENGASSAN, three percent of operating expenditure is a good place to start. Let the bill be signed to end the uncertainty that shrouded the petroleum industry. The host communities can then seek amendment.”