Prof. Yinka Omorogbe, President of the Nigerian Association of Energy Economics (NAEE), has sought clarification of the 30% NNPC Limited oil and gas profit transfer to the frontier exploration fund recommended in the recently enacted Petroleum Industry Bill (PIB).
Omorogbe announced at the NAEE’s 14th annual conference in Abuja yesterday.
She praised the National Assembly for passing the measure, saying it was critical for the sector’s future.
Those who have the actual data, she believes, should provide them for clarity, as this will assist to lessen the dispute over percentages
The PIB was passed by the National Assembly on July 1 after much debate, mainly over problems of the host community and revenue repatriation.
In this season of change, we cannot be left behind. We cannot be the country that remains frozen in debilitating discussions on whether or not a bill that will provide a new legal framework for the petroleum industry must be passed or not because of controversial clauses that can be amended.
As the nation debates the bill, it is necessary to focus on its actual contents and not on interpretations that are not always supported by fact.
It is important for those who can, to come out with actual numbers and eschew the present discussions on percentages, based on the perception that they refer to the same thing when in fact they do not.
Daily we hear about three per cent as against 30 per cent. three per cent of what? “ She asked.
Recall that, the Frontier Exploration Fund will be 10% of rents on petroleum prospecting licenses and 10% of rents on petroleum mining leases, as well as 30% of NNPC Limited’s profit oil and profit gas as part of the production sharing, profit sharing, and risk service contracts, according to Section 9(4) of the House draft of the PIB.