Petroleum Industry Bill
• FG looks to bid round to increase reserves
• Host communities insist on right of refusal
The Federal Government’s capacity to earn at least $10 billion or N4 trillion through the oil and gas industry, especially in the ongoing marginal fields licensing round, is dependent on a fiscal regime that will unlock about $30 billion capital stalled by delay in passage of the Petroleum Industry Bill (PIB), findings by The Guardian have shown.
Though The Guardian had last year reported that the Federal Government might earn nothing less than $5.7 billion if it succeeds with its ongoing bid rounds for 57 marginal oil fields being offered to investors, further findings showed that untapped reserves of 300 million barrels of oil from about 200 marginal fields could generate $14.1 billion or N4.314 trillion for government.
With a budget deficit of N5.2 trillion for the current fiscal year, such inflow may help reduce exposure to Bretton Woods institutions…
Source: Guardian Newspaper
