International Oil Companies operating in Nigeria have said the delay in the passage of the Petroleum Industry Bill has completely slowed down their N17.2tn ($109bn) proposed investment in the oil industry.
The bill, subjected to stakeholders’ debates for about 12 years, is still being discussed at the National Assembly.
Oil majors, who spoke under the aegis of the Oil Producers Trade Section of the Lagos Chamber of Commerce and Industry, said the planned projects were no longer economical due to the fiscal terms of the bill.
Members of the OPTS are Royal Dutch Shell, Total, Chevron, ExxonMobil and Agip.
Speaking at a session organised by the Petroleum Technology Association of Nigeria during the recent Offshore Technology Conference in Houston, Texas, the OPTS Chairman, Mark Ward, said, “$109bn in planned investments is not progressing as new projects are no longer economical.”
Ward, who also doubles as the Chairman/ Managing Director, ExxonMobil Nigeria, said the operators had planned to invest $33bn in the next five years but lamented that the fiscal terms of the PIB, if not reviewed, might jeopardise this.
Ward said the PIB lacked clarity in implementation and had no transition plan.
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