Oil Producing Trade Section (OPTS) and other stakeholders have expressed concern over some clauses in the Petroleum Industry Bill (PIB) saying they are not favourable for competitiveness and investments.
Making a submission on behalf of other members at the two days public hearing on PIB by the House Adhoc committee on Wednesday, OPTS chairman Mike Sangster, said they were not satisfied with some sections of proposed amendment in the PIB.
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The OPTS is a group of 30 indigenous and international players in the Nigerian oil industry responsible for about 90 per cent of the total oil and gas production in Nigeria.
He said some of the PIB provisions do not provide a favourable environment for future investments and for the launching of new projects.
Sangster suggested that the PIB should grant deepwater oil projects a full royalty relief during the first five years of production or a graduated royalty scheme as detailed in their submission.
He added that PIB should also remove Hydrocarbon Tax considering that companies will still be subject to Company Income Tax (CIT).
“OPTS recognises the government’s right to change laws. However, to maintain Nigeria’s reputation amongst investors, it is important for the PIB to explicitly preserve base businesses and rights for existing Joint Venture licenses and leases and Production Sharing Contracts (PSC), which form the basis for future growth,” he said.
