The oil producing communities in the country will get about $1.1bn (N165bn) direct dividend payment from crude oil sales as soon as the Petroleum Industry Bill is passed.
According to the Special Adviser to the President on Petroleum, Dr. Emmanuel Egbogah, the planned dividend payment to the oil communities is contained in the yet-to-be-passed PIB.
Egbogah, who spoke at the Nigeria Oil and Gas 2011 conference in Abuja, also reiterated that the PIB would soon be passed.
The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, who also spoke at the event, said that the adoption of the PIB would ensure that Nigeria became part of the global league of countries with the most forward looking petroleum laws.
“The upstream will have a new acreage management system in place with robust gas fiscal terms, while incentives will be available for the small fields. Basically, a fair share of value will be allocated to the huge resources available in Nigeria, which will also drive significant growth of the domestic power sector,” she said.
On domestic gas supply, the minister, who was represented by the Nigerian National Petroleum Corporation’s Group Executive Director, Exploration and Production, Mr. Andrew Yakubu, said that the Federal Government would ensure that gas supply projections, which currently indicated the attainment of 13 billion standard cubic feet per day by 2015 (with five billion scf/d into the domestic market), became a reality.
Alison-Madueke said Nigeria had very large reserves of low-cost gas and an enormous need for power generation.
She said, “Without rapid development of the power sector and gas-based industries such as fertiliser, methanol and petrochemicals, on the basis of cheap natural gas, the nation will not achieve its full economic potential.
“The PIB proposes a new comprehensive strategy to deal with these issues, which consist of the following key provisions: attractive fiscal terms for the production of gas and condensate through royalties, which are capped at 12.5 per cent, and substantial production allowances on the Nigerian hydrocarbon tax, which creates an overall government’s take of about 65 per cent.”
According to her, the bill also proposes the application of new fiscal terms to new projects that eliminate gas flaring or develop deeper gas reservoirs and “a comprehensive gas pricing framework with substantially higher domestic gas prices, linked to international market indicators that will encourage producers to rapidly increase gas production.
According to the Special Adviser to the President on Petroleum, Dr. Emmanuel Egbogah, the planned dividend payment to the oil communities is contained in the yet-to-be-passed PIB.
Egbogah, who spoke at the Nigeria Oil and Gas 2011 conference in Abuja, also reiterated that the PIB would soon be passed.
The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, who also spoke at the event, said that the adoption of the PIB would ensure that Nigeria became part of the global league of countries with the most forward looking petroleum laws.
“The upstream will have a new acreage management system in place with robust gas fiscal terms, while incentives will be available for the small fields. Basically, a fair share of value will be allocated to the huge resources available in Nigeria, which will also drive significant growth of the domestic power sector,” she said.
On domestic gas supply, the minister, who was represented by the Nigerian National Petroleum Corporation’s Group Executive Director, Exploration and Production, Mr. Andrew Yakubu, said that the Federal Government would ensure that gas supply projections, which currently indicated the attainment of 13 billion standard cubic feet per day by 2015 (with five billion scf/d into the domestic market), became a reality.
Alison-Madueke said Nigeria had very large reserves of low-cost gas and an enormous need for power generation.
She said, “Without rapid development of the power sector and gas-based industries such as fertiliser, methanol and petrochemicals, on the basis of cheap natural gas, the nation will not achieve its full economic potential.
“The PIB proposes a new comprehensive strategy to deal with these issues, which consist of the following key provisions: attractive fiscal terms for the production of gas and condensate through royalties, which are capped at 12.5 per cent, and substantial production allowances on the Nigerian hydrocarbon tax, which creates an overall government’s take of about 65 per cent.”
According to her, the bill also proposes the application of new fiscal terms to new projects that eliminate gas flaring or develop deeper gas reservoirs and “a comprehensive gas pricing framework with substantially higher domestic gas prices, linked to international market indicators that will encourage producers to rapidly increase gas production.
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