The Nigerian National Petroleum Corporation (NNPC) has assured investors in the nation’s oil and gas industry, specifically joint venture partners, that the fiscal regime which would emerge from the Petroleum Industry Bill (PIB), when passed, would make Nigeria a more conducive environment for business in the West African sub-region.

Group Managing Director of NNPC, Engr Austen Oniwon gave the assurance at the just-concluded 35th edition of the Society of Petroleum Engineers (SPE) Nigeria Annual International Conference and Exhibition (NAICE) 2011 while presenting a paper entitled, “Gas Utilisation For Long Term Clean Energy And Economic Growth”, in Abuja.

Oniwon reasoned that the non-passage of the bill should not be an excuse for indecision as the opportunities available in the industry would not wait as others would come and fill the gap, if joint venture partners fail to act promptly.

Acknowledging their doubts about the fiscal regime in the PIB, the NNPC boss said, “but I can tell you from what I know from the PIB, that the fiscal regime that will emerge is not going to be any worse than what operates in the West African sub-region.

“I believe, if you can do business under these regimes, then those that would do business under the PIB would be very happy to do business in Nigeria”, the GMD emphasised.

The Tide gathered that the bill stipulates how resources and profits should be shared between government and operators in  the industry, and conditions under which the companies will operate.

But The Tide understands that some major international oil companies (IOCs) had kicked against the PIB, alleging that it contains a punitive fiscal regime, and therefore, may undermine their business interests.

Sources said that this feeling had resulted in observed reluctance of the IOCs to invest in new exploration and production operations in the country, which has adversely impacted available crude oil reserves.

But in a bold strategy to shore up core investors’ confidence in the PIB, Oniwon pledged the corporation’s resolve to optimise the nation’s oil and gas potential by encouraging investors to expoit the wide opportunities that exist to boost their drive towards business expansion.

According to Oniwon, with proven gas reserves put at 187 trillion cubic feet (tcf) as at January, 2007, the country’s gas reserves creates a solid platform for environmentally-sustainable economic growth, nothing that as the seventh largest producer in the world, Nigeria’s gas remains of high grade quality without any sulphur content.

On the need to enhance gas utilisation, the GMD said, “Nigeria is said to be one of the fastest growing emerging economies with an expanding middle class, and expected growth in the energy and power sectors”, adding that, “existing energy supply and demand imbalance widening as a lack of past investment in infrastructure has hindered development of Nigeria’s natural gas resources.”

Oniwon stressed that, “government’s objective is to increase power generation capacity to 10,000megawatts from the current 6,000megawatts, of which less than 50 per cent is utilised due to gas supply constraints.”

He noted that the dearth of domestic infrastructure has made diesel and petrol the main source of fuel supply for electricity generation in Nigeria, and added that the realisation of the full potential of natural gas would require enormous efforts and collaboration.

The NNPC’s top director reiterated the Federal Government’s vision of using the gas industrialisation project for the economic transformation of the country, adding that the strategic initiative is anchored on planned investments such as petrochemicals, fertiliser and methanol plants, aimed at shooting up gas utilisation and monetisation windows.

Vivian-Peace Nwinaene