An expert in the oil and gas industry, Adegboyega Adegoke, has warned that the Petroleum Industry Bill (PIB), may face litigations from aggrieved stakeholders should the National Assembly fail to harmonise all the grey areas in the bill before it eventually becomes law.
Adegoke, who is a Director of OES Energy Services Limited, said the need to harmonise the grey areas before the bill is assented to by the President is to satisfy the interest of major stakeholders.
Senate and House of Representatives recently passed the PIB with the upper chamber recommending 3 per cent and the lower chamber approving 5 per cent for host communities.
Adegoke however urged the Senate, House of Representatives and the executive arm of government to quickly use political solution to resolve all the pending issues in the Bill.
Speaking shortly after he received an award of excellence given to him by the Inner Wheel Club District 913-Nigeria, during the investiture of Sherifat Ojoele-Ayoola, as the 35th District Chairman, he said part of the grey areas to resolve include the 30 per cent of the profit earmarked to be spent on frontier basins for oil and gas exploration.
Other awardees include Teslim Folarin, represented by Lowo Obisesan, Funso Omokurolue and Toun Soetan.
Also at the event were Deputy Governor of Oyo State, Rauf Olaniyan, Sharafaden Alli, and many other dignitaries.
The Ajia Balogun of Ibadanland, however hailed the National Assembly for the passage of the Bill, describing it a welcome development coming after many years.
He said, "First of all, it is a welcome development because we have been on it for several years, 17 years for that matter, but now we have been able to do something. I want to add that non-passing of the PIB has led to reduction in investment in the Oil and Gas sector in Nigeria.
"It is same Oil and Gas globally, so if one country is not serious, you will take your money to other countries and that's what has been happening in Nigeria. Now it is one step forward but there are lots of grey areas in the bill to be addressed.
"There is the need for House of Representatives and the Senate to meet to harmonise some grey areas. House of Representatives recommended 5 per cent while Senate recommended 3 per cent allocation for the host communities.
"Another grey area is the recommendation of 30 per cent profit of the NNPC to be spent on frontier basins, which are mainly in the Northern part of the country. This implies that the funds will be channelled into looking for oil and gas in those areas.
"To me it looks somehow in this era of borrowing from China, and that the little NNPC is making, 30 per cent of it will be spent on oil and gas exploration we are not sure of, even if we get oil from those basins, it cannot be in commercial quantity.
"This money is supposed to be spent on infrastructure, supporting the Niger Delta where the oil is coming from. But all in all we need political solutions to all these grey areas."
