Page 10 - AfrOil Week 04 2021

AfrOil PERFORMANCE AfrOil

The three other initiatives, which will require 70% of domestic demand. Most of the increase
$11bn in investments, are in the feasibility study occurred after the launch of the Hassi Messaoud
phase. Algeria’s national oil company (NOC) refinery within the framework of a campaign to
Sonatrach is in search of foreign joint venture develop downstream projects.
partners for these projects. The increase is expected to help the North
Algeria has already succeeded in lifting African country achieve self-sufficiency in vehi-
diesel production to a level where it satisfies cle fuel supplies. ™

POLICY
Nigerian Senate leader sees PIB

passed in April and signed in May

NIGERIA AHMAD Lawan, the president of Nigeria’s outdated laws. These challenges include those
Senate, said earlier this week that he expected dictated by global practices, the persistent calls
to see the Petroleum Industry Bill (PIB) signed for the deregulation of the downstream sector,
by President Muhammadu Buhari and enacted the agitation of the oil-producing communities
within the next four months. and the unbundling of the NNPC [Nigerian
“The National Assembly will pass the bill by National Petroleum Corp.]. All these [develop-
April, and I’m sure it will get presidential assent ments] underscore the need for urgent legisla-
by May this year,” Lawan said. He was speaking tive reform.”
during a two-day public hearing on the PIB that
was organised by the Senate’s Joint Committee Industry criticism
on Petroleum Sector (Downstream), Petroleum Among the attendees at the same hearing was
Resources (Upstream) and Gas. Mike Sangster, the chairman of a local industry
Both houses of Nigeria’s National Assembly association, the Oil Producers Trade Section
have already passed the PIB in the first two read- (OPTS). Sangster spoke critically about the PIB,
ings. Buhari submitted the bill to the Senate and saying that it did not do enough to encourage
the House of Representatives in August 2020, and safeguard investment in oil and gas projects.
saying he hoped to secure passage of the bill by “If the PIB is passed in its current form, it will
the end of the same year. However, the legislative not meet the government’s objectives of mak-
process has moved less rapidly than anticipated, ing Nigeria the leading destination for oil and
partly because legislators focused on the 2021 gas investment ... Nigeria faces ever-increasing
budget bill in November and December. competition for investment and despite hav-
According to Lawan, these delays underline ing the largest reserves, only $3bn out of the
the necessity of moving ahead with the PIB. “The $70bn committed in Africa for projects sanc-
Ninth Senate, in its wisdom, made the passage of tioned between 2015 and 2019 were attributed
the bill a priority in its legislative agenda and has to Nigeria, representing a meagre 4%,” he said.
since in conjunction with critical stakeholders “This lack of competitiveness is caused in part by
been working assiduously to get the bill passed the high cost of doing business in Nigeria, with
this year,” he commented. “Arguably, Nigeria’s oil overall project costs and operations costs being
and gas industry has experienced several shocks 69% and 42% higher than the global average
and challenges over a long period as a result of respectively.”`

Nigerian Senate President Ahmad Lawan (Photo: Premium Times)

P10 www. NEWSBASE .com Week 04 27•January•2021