Players in the global oil and gas industry are set to step up efforts targeted at ensuring the enactment of new petroleum legislations in Nigeria and Iraq based on the prime position of the two countries.
Nigeria and Iraq are frontline members of the Organisation of Petroleum Exporting Countries, OPEC, with 37 billion barrels and 187 trillion standard cubic feet and 143 billion barrels and 128 trillion standard cubic feet of crude oil gas respectively.
The countries, which petroleum industries have common features also have the promise of boosting global
supply through increased investments, ensuring new finds and additional reserves.
However, the players, who gathered in Abu Dhabi to review crucial issues in the Kurdistan region of Iraq, which is under the control of communities in the area, noted that both Nigeria and Iraq have not witnessed much investments in the past few years in the sector as a result of the inability of their legislators to pass the necessary bills into law.
The President and Founder of Global Water and Energy Strategy Team, Mr. Paul Michael Wihbey said in an exclusive interview that the world was worried about developments in Nigeria and Iraq.
He said: “Like other experts here, I am worried that Nigeria and Iraq have not been able to pass their proposed petroleum bills into law. The bills are very important, especially as they would attract substantial investments into the oil and gas industries in these nations.
“The Nigeria’s Petroleum Industry Bill, PIB, was first sent to the National Assembly in 2008. It is surprising that the PIB has not been passed into law.”
He said the PIB was initially delayed because of the interests of stakeholders, including oil communities, oil companies and the Federal Government which made strong cases for their interests to be reflected.
“The same thing applies to stakeholders, especially the people of Kurdistan region, who control and regulate part of the Iraqi oil and gas industry.
“The people of the region have rejected to take $5 per barrel of oil as documented in the nation’s proposed oil bill. The region has insisted that it would continue to control 100 per cent of the resources in order to generate adequate revenue for the development of the region.”
Wihbey, who noted that the situation has discouraged many International Oil Companies, IOCs, from investing in the country despite the high prospect of making new oil finds, said many experts would be willing to assist in producing the PIB if needed.
A former researcher in OPEC, who is now a consultant in Dubai, Dr. Ali Hussain said the oil dispute between the Iraq Government and the Government of the region of Iraqi Kurdistan has been going on for many years.
He said the problem was that each of them interprets the Iraqi constitution in a way that suits its action in dealing with development of the oil industry resources within its respective territory.
However, despite the strong concern by the international community, the PIB may not be passed into law this year, especially as the legislators seem to be interested in the politics of 2015 than the bill.
An Energy Expert, Mr. Zaka Bala told our correspondent that the National Assembly has not shown enough enthusiasm in passing the bill.
He said: “The lawmakers have not shown enough commitment to the passage of the PIB. Members of the parliament have to be committed.
“They should know that the delay in passing the bill has affected the nation in many negative ways. For instance, many IOCs and even indigenous oil and gas companies have reduced their operations because of some uncertainties which the PIB is expected to clarify.”
Bala stated that many oil firms have gone to invest in other economies that are blessed with attractive legislations, policies and incentives, including Angola and Ghana.
“The legislators and others should know that these companies have already invested huge monies to explore and produce crude oil and natural gas in other countries.
“Even in Africa, other emerging nations, especially in West Africa and East Africa have started to attract significant investments,” he added.
Meanwhile, the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, yesterday blamed the current scarcity of petrol nationwide on the diversion of the commodity by some marketers.
The minister made the accusation after an unscheduled inspection of 15 filling stations in Surulere, Ikoyi, Ajah and Iponri areas of Lagos.
“We have enough fuel to serve the country, the challenge we are having is that, some drivers will not supply the lifted products to designated filling stations.
“Having gone round the state, it is not just the filling stations at Ikoyi that appeared to be without product, but other extreme locations like Ajah and other parts in Surulere.
“It appears there are lots of factors militating against efficient delivery of fuel.
“We learnt that some of the marketers instructed their drivers to change the number plates of their trucks to make it difficult for tracking.
“I have directed the heads of the agencies – Department of Petroleum Resources, DPR, Pipelines Products Marketing Company, PPMC, and Petroleum Pricing and Regulatory Agency, PPPRA – to give me a clear picture and timeline in terms of numbers of trucks coming into Lagos.
