PIB is fair to All – Alison-Madueke
Says New Fiscal Regime will Increase Production
The Minister of Petroleum Resources and Chairperson of the Board of Directors of the Nigerian National Petroleum Corporation, NNPC, Mrs. Diezani Alison-Madueke Tuesday described the draft Petroleum Industry Bill recently sent to the National Assembly by President Goodluck Jonathan as a viable document capable of providing a win-win scenario for all stakeholders in the oil and gas industry in Nigeria.
Speaking at a High Level Investment Summit in London organised by the Ministry of Trade and Investment in conjunction with the Bank of Industry, Mrs. Alison-Madueke in a presentation titled: Investment Opportunities in Nigeria’s Downstream Oil and Gas Value Chain, called on investors around the globe to take full advantage of the enormous opportunities the proposed oil industry reform law has to offer.
The Minister noted that apart from providing a healthy deregulated environment for private sector participation in the downstream sector, the PIB offers a refreshing fiscal regime with strong incentives for production.
“We have a fiscal regime by royalty and tax which is now predicated on production as opposed to terrain and investment as was previously done. Royalty by production as we have outlined in the bill will capture the output of company as opposed to its location; it will create a fair balance between small and big operators operating in the same terrain, it will give operators the opportunity to make fair returns during field decline, and it proposes lower rates on condensate from large fields as well as ultra deep water fields,’’ Mrs. Alison-Madueke said.