PIB Will Not Victimize IOCs - Oniwon
ABUJA, August 01, (THEWILL) - The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Engr. Austen Oniwon has reassured the International Oil Companies operating in Nigeria that the Petroleum Industry Bill, PIB, currently before the National Assembly, is not designed to victimize them but rather to simplify and streamline the process of doing business in the Nigerian oil and gas sector in such a way that all investors would operate on a level playing field.
Engr. Oniwon made this clarification during a meeting with the French Ambassador to Nigeria, His Excellency Jean- Michel Dumond who paid a courtesy call on him at the NNPC Towers, Abuja.
He disclosed that some of the concerns raised by the IOCs about doing business in the country have been reflected in the bill and urged France and other western countries to invest in the downstream, midstream and upstream sub-sectors of the petroleum industry in Nigeria.
Engr. Oniwon noted that the Bill, when passed into law, would transform the NNPC into a commercially driven and profit oriented national oil company that would not only cease to be a regulator but focus mainly on operating proficiently without government intervention in its business.
The NNPC helmsman reassured the French Ambassador that the PIB would not put any of the IOCs at a disadvantaged position; rather it would create a win-win situation for all operators.
"The PIB will change the energy business environment in Nigeria for the better. The objective of the bill is to simplify the operations of the business and not to complicate it as is being speculated by some IOCs. There is no effort in that bill to reduce the profitability of business rather NNPC and other IOCs will be operating on a level playing field. I can assure you that the bill will not victimize any IOC," Engr. Oniwon confirmed.
He called on the Ambassador to invite Total to invest in the downstream sector of the value chain by building refineries in Nigeria. He also reiterated the Federal Government’s commitment to the deregulation of the downstream sector in order to allow market forces to control the prices of petroleum products.
"Deregulation has already started as the only product that is still regulated is gasoline and I can assure you that the Federal Government is committed to the policy," Engr. Oniwon opined.
The NNPC GMD reiterated that the Corporation is solvent and meeting all its financial obligations. He emphasized that crude production has stabilized and that the Corporation regularly meets its OPEC quota of 1.69 million barrels.
Responding, Jean- Michel Dumond commended Nigeria for its quest to promote transparency and accountability through the PIB and expressed the readiness of France to sustain its strategic business partnership with Nigeria, disclosing that France is the second largest investor in the petroleum sector in Nigeria.
He applauded the Federal Government for the amnesty programme and said the programme has brought peace and stability to the Niger Delta hence ensuring the security of lives and property of the IOCs in the area.