Connect with us

Oil & Energy

CSO Urges Oil Communities To Challenge PIA In Court

Published

on

A Civil Society Organisation, Policy Alert, has faulted President Muhammadu Buhari’s signing of the Petroleum Industry Act 2021, urging communities to test the provisions of the Act before the courts.
President Buhari had signed the erstwhile Petroleum Industry Bill, PIB, into law last Monday amidst protests from community groups and many other stakeholders that the Bill do not adequately cover the rights and interests of the host communities.
In a statement signed by its Communications and Stakeholders Engagement Officer, Mrs. Nneka Luke-Ndumere, Policy Alert, which is working for economic and ecological justice, described the presidential assent to the PIB as “grossly insensitive and problematic.
“It is sad that the bill has been assented to in the most controversial manner despite its many obvious flaws and its rejection by many stakeholders,” the statement read.
It added: “For example, the controversial provision for a direct payment of 30 percent profit oil and profit gas to the Frontier Exploration Fund potentially shortchanges the oil producing states and local governments of some of its thirteen percent derivation as it bypasses the requirement in section 162 (2) of the 1999 Constitution (as amended) which provides that all revenues be channeled through the federation account.
“This is most unfair, viewed against the ceding of only three percent of previous years’ operating expenses to the Host Communities Development Trust Fund and the punitive provision to charge costs of any damage to facilities against the community’s Fund, among other obnoxious provisions.
“That Mr. President has gone ahead to give assent to these vexing provisions only reinforces the politics of exclusion and expropriation that has for long characterised the relationship between the Nigerian state and the oil producing communities.
“We are also concerned that the host communities’ component of the legislation flies in the face of one of its stated objectives to address tensions between host communities and companies as it has all the ingredients for escalating rather than abating such conflicts.
“At a time when fossil fuel investments are being deprioritised elsewhere as a result of the global energy transition, it is unfortunate that this Act failed to provide a bridge between the current era of fossil fuel dependency and the low-carbon energy future that Nigeria aspires to within the framework of government’s much vaunted commitments under the Paris Agreement.”
The statement also said: “Granted, the new legal framework introduces some predictability and clarity to the governance and fiscal arrangements in the oil and gas industry. We are also not oblivious to certain clauses that respond to some of our earlier demands, such as those providing that the Board of Trustees of the Host Communities Development Trust will now be determined in consultation with the host communities, with  membership drawn from community members. But that is just as far as it goes.
“As a tool for improved benefit sharing to host communities, the Act falls flat on its face. It actually ridicules the exertions of the host communities and advocacy groups that have clamoured over the years for a law that yields some space for participation, direct socio-economic benefits and environmental remediation for oil-rich communities.
“The theatre of action will now have to move to the communities and the courts of law. As implementation of the Act gets underway over the next 12 months, we urge host communities and civil society groups to begin to seek interpretation of some of its more controversial provisions before the courts.”

Continue Reading

Oil & Energy

BUA Group, A’Ibom Sign MoU For Refinery’s Access Road

Published

on

Bua Group has signed a memorandum of understanding, (MoU), with Akwa Ibom State Government, and the host communities in Ibeno Local Government Area, for the construction of access road to the proposed Bua Refinery and Petrochemical plant site in Ibeno, last week.
Akwa Ibom State Commissioner for Power and Petroleum Development, Dr. John Etim, who presided over the signing of the MoU, applauded BUA for their commitment to the project, prompt documentation and the preparation of the site towards the construction of the refinery.
Etim said that the refinery project will bridge the gap between host communities and Akwa Ibom State, thereby bringing about more developments in the oil and gas sector of the State.
The Commissioner called on all parties concerned to be committed to the terms of agreement and to ensure that peace dominates their relationship, while appealing to the host communities to protect the facilities which is now in their custody
“The refinery and petrochemical project is in line with the Governor’s vision to industrialise the State, develop local capacity in key industries where value can be added and raw materials sourced locally.”
Speaking shortly after the MoU signing, the Chairman of Ibeno local government, Williams Mkpa, expressed delight over the development, describing it as a giant stride in the industrialisation vision of the Akwa Ibom State Government.
The paramount ruler of the area, Owong Effiong Archianga, assured the company of his people’s unalloyed support and cooperation to see to the actualisation of the project.

Continue Reading

Oil & Energy

Kyari Tasks Greenfield Refinery On Fuel Importation

Published

on

The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, has charged members of the Board of the NNPC Greenfield Refinery Limited (NGRL), to explore all available options to bring an end to the current challenge of petroleum products importation.
Mallam Kyari gave the charge Thursday while inaugurating the Board of the newly incorporated subsidiary of the Corporation, NNPC Greenfield Refinery Limited (NGRL), at the NNPC Towers, Abuja.
The NNPC Greenfield Refinery Limited is a subsidiary of the Corporation set up in December 2020 with a mandate to oversee the establishment and operation of new refineries.
The GMD, who is also the Chairman of the NGRL Board, challenged members of the Board to focus on profitability in order to remain afloat and avoid liquidation.
“As a business, this is a big opportunity for us and this company’s balance sheet must change positively. Going forward, with the Petroleum Industry Act (PIA), I can tell you that if you continue to post negative for three years, you are out. So, there is really no excuse”, Mallam Kyari stated.
He urged the Board and Management Team of the new company to set up a proper structure with the required skills, technology and financing to drive the company’s operations, adding that he was optimistic that the company would be able to achieve its mandate.
“Our company must grow and we can’t do well except we are able to process our production whether it is the liquid or gas. If we don’t monetise it then we have done nothing. This is really a new chapter and we are committed to making it work,” he said.
The NNPC helmsman stated that all the Corporation’s initiatives in the areas of new refineries, condensate refineries and equity acquisition in credible private refineries were geared towards ensuring energy security for the country.
In his remarks, the Alternate Chairman of the Board and Group Executive Director, Refinery and Petrochemicals, Engr. Mustapha Yakubu, declared that the operations of the company would be guided by the principles of cost effectiveness in line with the new Petroleum Industry Act (PIA), noting that profitability would be the key focus.
Speaking in similar vein, the Group General Manager, Greenfield Refineries and Project Division (GRPD) and Managing Director of the NGRL, Engr. Bege Talson, disclosed that the Division was working with third party investors to establish greenfield, modular and condensate refineries with a combined capacity of 250,000barrels per stream day (bpsd).

Continue Reading

Oil & Energy

Centre Writes Buhari Over Licences For Repentant Artisanal Refiners

Published

on

The Youths and Environmental Advocacy Centre, YEAC, has urged President Muhammadu Buhari, to issue modular refinery licenses to repentant artisanal refiners, who have formed and registered themselves into co-operative societies, in order to dissuade them from returning to the creeks.
YEAC in an open letter to the President, recalled that Vice President Yemi Osinbanjo, (then Acting President) in 2017 had assured of the establishment of modular refineries for youths involved in artisanal crude oil refining in the Niger Delta, as a way of curbing oil theft, vandalism and environmental pollution in the country.
Executive Director of YEAC, Fyneface Dumnamene Fyneface, also recalled that the Minister of State for Environment, Mrs. Sharon Ikeazor, had also directed artisanal crude oil refiners to register and form into co-operative societies, for the easy issuance of modular refinery licenses.
Fyneface, who is also the National Facilitator, Project with Artisanal Crude Oil Refiners for Modular Refineries in the Niger Delta, said as a result, the group has commenced the process of registering artisanal refiners for the formation of co-operative aocieties for modular refineries, since 2019.
He spoke at the inauguration and presentation of three cooperative societies in Delta State to the Federal Government, namely, Delta North Modular Refinery Multi-Purpose Co-operative Society Ltd, Delta Central Modular Refinery Multi-Purpose Co-operative Society Ltd, and Delta South Modular Refinery Multi-Purpose Co-operative Society Ltd.
Advocacy Centre also announced that the group was on the move to inaugurate more modular refinery co-operative societies in other Niger Delta States.
“It is against these brief backgrounds that we write you this open letter to formally present to you, three Modular Refinery Multi-Purpose Co-operative Societies of artisanal crude oil refiners in Delta State for you to issue them Modular Refinery Licenses as promised.
“They are; Delta North Modular Refinery Multi-Purpose Co-operative Society Ltd with Christian Obokana (08033938770) as President; Delta Central Modular Refinery Multi-Purpose Co-operative Society Ltd with Cyril Oghenevwede (08032364268) as President and Delta South Modular Refinery Multi-Purpose Co-operative Society Ltd, with Clever Donokoromor (07065439069) as President.
“These three co-operative societies are also today collectively inaugurated as the pioneer members of “Delta State Association of Modular Refinery Multi-Purpose Co-operative Societies” with Clever Donokoromor as the Chairman.
“These are the authentic platforms of the real artisanal crude oil refiners who have stopped and embraced your policy on Modular Refineries as alternative means of livelihood in Delta State. In the days ahead, we will inaugurate and also present to you, Modular Refinery Co-operative Societies in other Niger Delta States.”
Again, the Advocacy Centre appealed to the Federal Government to established a scheme similar to PAGMI, to polish and streamlined artisanal refiners just like it was obtainable with artisanal gold miners in the North.
“While thanking you for taking this bold step to address issues around youths and artisanal crude oil refining in the Niger Delta through modular refineries, it is our recommendation that you speed-up the process and also kindly consider and establish a “Presidential Artisanal Crude Oil Refining Development Initiative (PACORDI)” for artisanal crude oil refiners in the Niger Delta, similar to the “Presidential Artisanal Gold Mining Development Initiative (PAGMI)” in parts of the North and Western Nigeria.
“We look forward to having you issue Modular Refinery Licenses to these Co-operative Societies so that they do not cite Government unseriousness and return to the creeks to cause more damage to oil facilities and our fragile environment.
“On our part as an organization, we will continue partnering with your government to address this and related issues in the Niger Delta and strengthen our facilitation of international development partners to co-fund the Modular Refinery projects for artisanal crude oil refiners in the Niger Delta.”

Continue Reading

Trending