.Demands a review of template for gas pricing.
The Speaker House of Representatives Hon.Femi Gbajabiamila, Minister of State for Petroleum Resources Chief Timipre Sylva and major stakeholders in the oil and gas industry have called for the inclusion of gas terms in the production sharing contracts entered into by the Nigerian National Petroleum Corporation with some oil producing companies operating in Nigeria
They made the call separately in their opening remarks at a one day public hearing organised by the House Joint Committee on Gas Resources, Petroleum Resources (Upstream) and Petroleum Resources (Downstream) on Inclusion of Gas Terms in Production Sharing Contracts at the National Assembly.
The Speaker had in November 2020 after House resolution in a motion mandated the joint committee to engage with major stakeholders in the oil and gas industry to undertake a whole list review of gas terms in the production sharing contracts by oil sector major players.
The public hearing he said is crucial because for long Nigeria has not made effective utilization of its enormous gas resources to drive national development.
He called on the federal lawmakers to articulate the way forward to enable the nation tap from these gas deposits and further called on policy makers to ensure a review of the template for gas pricing.
Similarly, Minister of State for Petroleum Resources Chief Timipre Sylva also called for a new price regime for gas resources in the country
He further said that the Ministry has set u a technical committee to review the gas pricing template and added that it should be made available and affordable.
Also in his opening speech, Chairman of the House joint Committee Hon.Nicholas Mutu Ebomo said that there is need for a robust gas policy in the drive to reform the oil sector.
He added that the public hearing is going to provide opprtunity to attract investors into the oil and gas sector of the nation’s economy.
Other stakeholders especially the Department of Petroleum Resources DPR and Oil Producers Trade Section lauded the initiative as a key reform initiate to help drive the reform in the oil industry
DPR particularly noted that there are 26 Oil Prospecting Leases OPL awarded and signed by oil companies in production sharing contracts.
All the key note speakers at the public hearing agreed that a review of gas pricing template is crucial in the NNPC/IOCs production sharing contracts before passage of the Petroleum Industry Bill PIB pending before the National Assembly.
