PIB - How Oil Communities Can Enjoy 10 Percent Equity, By FG
Jimitota Onoyume (Vanguard), 22 March 2010
Port Harcourt — The Federal Government has said the condition for oil communities in the Niger Delta to enjoy the proposed ten percent equity in the Petroleum Industry Bill was for them to ensure safety of oil installations in their areas.
Special Adviser to the President on Petroleum Matters, Dr Emmanuel Egbogah, made this known during a tour of NLNG facilities at Bonny Island. "We also introduced 10% profit from oil revenue to host communities in the Petroleum Industry Bill as an incentive for them to protect oil installations in their areas. "What this means is that any community that is not able to protect these installations loses its own share of this revenue," he said.
Egbogah expressed the hope that with the amnesty, the problem of lack of gas for NLNG operations would soon be a thing of the past. According to him, the peace brought about by the amnesty resulted in a rise in oil production in the country from about 1.6 billion to 2.6 billion barrels. "Oil production has risen from about 1.6 billion barrels to 2.6 billion barrels since the amnesty. That is a sign that it is working," he said.
Noting the contribution of NLNG to the nation's economy, Dr Egbogah urged the Nigerian National Petroleum Corporation (NNPC) to adopt the business model of the NLNG, as it would make the nation profitably market its gas supply. "If NNPC will duplicate NLNG model, Nigeria will be able to profitably market its gas as well as create a viable business that will boost the economic fortunes of the nation," he said. Dr Egbogah expressed satisfaction with the achievement record of the NLNG.