Jonathan orders review of Petroleum Industry Bill
News Written by Hamisu Muhammad, Monday, 19 April 2010 23:09
Egbogah said this yesterday at the Nigerian Association of Energy Economics (NAEE) conference in Abuja, that the “acting president has instructed me to look at all the projects in question to ensure the IOCs get the deserved rate of return”.
He said initial reviews of the same projects have already probed that the projects in question have good rate of return. The international oil companies have been complaining over the fiscal regime in the new law which proposed for more tax especially on deep offshore projects.
The IOCs complained that their billions of dollar-worth investments are at risk if the bill is pass the way it is now.
But the proponent of the PIB said the IOCs are only jealous because government wants more take in the oil and gas revenue which as proposed in the bill. “We went round and we did project by project review of all the oil and gas projects in the country especially the deep offshore projects. During our review we have established that the rate of return is far higher than the expected 56.7”, said Egbogah. He said his team will go back again and review the projects again on the 23th April, 2010 in order to verify more of their claims.
The new Group Managing Director of the NNPC Shehu Ladan said in Lagos that the government is going to look at the issues that generate controversies between it and the international oil companies.