…as Senator Albert Highlights Gains
The Senate has mandated Oil & Gas companies operating in Nigeria to relocate to their operational bases without further delay.
This follows a motion presented during Tuesday’s plenary by the Senator representing Akwa Ibom North East, Obong Bassey Albert, on the need for the companies to immediately relocate to their operational bases to ensure host communities reap the dividend of the Petroleum Industry Act (2021).
Presenting the motion for consideration, Senator Albert said the inability of Multinational and Nigerian oil and gas companies to have their operational headquarters within their host communities account for the high cost of production in the sector.
This, he said, has been the bane of the country’s oil and gas industry, which militates against maximum derivation of revenue from crude oil and gas sales to the Federation.
He highlighted the high cost of production as one of the most contentious elements limiting development of petroleum industry value chain.
The lawmaker hinted that the recent passage and signing into law of the Petroleum Industry Act, 2021 (PIA) by the National Assembly and the President of the Federal Republic of Nigeria respectively, is a major milestone towards the restoration of a lasting peace in the host communities.
According to him, the Petroleum Industry Act, 2021 places certain responsibilities on the security, peace and safety of oil and gas infrastructure on the host communities to safeguard and ensure peaceful co-existence between oil and gas companies and their host communities.
He said the PIA has provided for the restoration, recovery and rehabilitation of the massive infrastructural facilities abandoned by the various oil and gas companies in their various operational bases to ensure their full utilization
He assured that the relocation of these companies to their host communities will further boost development in those areas and enhance the corporate social relationship and strengthen the collective resolve to drastically reduce the contentious cost of production and ensure adequate returns to the federation account.
The Senate, in its resolution, mandated the Senate Joint Committee on Petroleum Resources Upstream, Downstream and Gas to liaise with the Ministry of Petroleum Resources and the Presidential Implementation Committee on the Petroleum Industry Act (PIA), to galvanise the immediate relocation of the oil and gas companies in Nigeria to their various operational bases to ensure their smooth operations.