Page 13 - AfrOil Week 35

AfrOil PERFORMANCE AfrOil

EPRA responded by taking steps to make more had changed as a result of the government’s deci-
gasoline and diesel available across the country, sion to raise motor fuel prices.
she said. “In order to bridge the gap, emergency The rate hike took effect on August 14, caus-
tenders were called [earlier in August] through ing gasoline and diesel prices to climb by 20%
the open tender system, thereby alleviating sup- and 17% respectively.
ply constraints,” she was quoted as saying by the Kenya has seen motor fuel consumption lev-
Nation. els rise significantly since the end of June. EPRA
These extra volumes should help cover any data show that traders in the East African state
gaps that may occur as traders ramp up imports, sold 174mn litres of gasoline and 217mn litres of
she said. diesel in August, up from 144mn litres of gaso-
Mutung’a also noted that market conditions line and 187mn litres of diesel in July. ™

POLICY
Sylva says PIB will reduce tax burden

on oil and gas operators in Nigeria

NIGERIA NIGERIAN Minister of State for Petroleum Sylva explained that Nigeria’s government
Resources Timipre Sylva has indicated that the had drawn up the final draft of the PIB, which
government’s proposed Petroleum Industry Bill was submitted to the National Assembly for
(PIB) will reduce the tax burden on the oil and consideration on August 18, with the intent
gas sector. of establishing an investment climate capable
Speaking at a meeting hosted by the Nige- of compensating for losses sustained during
rian Association of Petroleum Explorationists the coronavirus (COVID-19) pandemic. He
(NAPE), a local industry group, Sylva said that also stressed, though, that Abuja also hoped to
federal authorities were “not unmindful that the ensure that current investors could continue to
industry players are of the view that the current operate profitably in the country.
level of taxation on onshore and shallow-water To this end, he said, Nigeria will offer oil and
operation is excessive.” As such, he stated, offi- gas companies options for renegotiating (or pre-
cials in Abuja sought to ensure that the new oil serving) their contracts. “Investors in existing
law would offer more favourable conditions. assets will be able to sign conversion contracts to
More specifically, he said, the PIB seeks to obtain better terms for existing production and
lower taxes on new investments, as well as ongo- be able to explore and produce parts of the exist-
ing projects. Though he did not say exactly how ing blocks under the new terms,” he declared.
far rates might fall, he did describe the planned “Investors that also want to continue operating
cuts as “significant.” He was also quoted by under current fiscal terms can elect to do so.”
Africa Oil + Gas Report as saying that the PIB He added that Abuja was keen to ensure
would reduce royalties, especially for fields that outside investors supported social welfare
where production levels are low. programmes. “Host communities will be ade-
“[It] is therefore our hope that the future is quately covered to foster sustainable prosperity
more positive and attractive for the Nigerian within the communities, [ensuring] direct social
petroleum industry after the passage of the PIB,” and economic benefits from petroleum opera-
he declared. tions [for] the host communities,” he said.™

Sylva says the PIB will lower taxes for greenfield and brownfield projects (Photo: File)

Week 35 02•September•2020 www. NEWSBASE .com P13