Chevron urges FG to fast-track PIB enactment

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8 years ago

Acting President, Yemi Osinbajo will deliver a keynote address at the first summit on financing the creative industry.

Oil giant, Chevron Nigeria Ltd (CNL), has called on the government and to fast track the ongoing enactment of Petroleum Industry Bills (PIB) now at the National Assembly.

The call was made on Tuesday by the General Manager, Down Stream, CNL/Middle East/Africa, Mr. James Okereke during a presentation at the Pan Atlantic University (PAU), Lagos.

He expressed worries over delays in getting timely approvals from government within the budget period of a contract where foreign exchange and inflation differentials will not change the original narrative of the budgetary preparedness for a particular job.

Okereke listed critical impediments frustrating development speed in the sector to include delays in contracting process policy of the government, weak implementation of industry laws and regulation, multiple taxation up to 14 in the industry and security.

While giving details in his presentation at the 2017 set of Advanced Writing & Reporting Skills (AWAReS), School of Media and Communication, PAU, Lekki, the CNL boss said “Oil and gas remain the main contributor to the federal government’s revenue as it make well over 90 per cent or more from oil production sharing contracts (PSC)”.

According to him, the major challenges facing several production contracts in the industry is undue delays in getting timely approvals from government within the budget period of a contract where foreign exchange and inflation differentials will not change the original narrative of the budgetary preparedness for a particular job.

Okereke explained further that it always amounts to huge loss when a company targets to get an approval for a contract within few weeks only to get it after several months when costing of implementation logistics have all changed either due to forex scarcity or even relevance of the job in question.

He listed major development plans of the company for 2017 that are already ongoing which included sustained onshore developments, consolidated its NNPC/CNL JVs leading status by following its major capital projects safely and continuing the pursuit of alternative financing for JV projects alongside serious focus on corporate responsibility using Global Memorandum of Understanding (GMoU) policy in producing communities.