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PSC Act vs IOCs: Stella Odua accuses NNPC of negligence

The Senate on Wednesday asked three committees to investigate seven international oil companies over their alleged refusal to remit about $21bn to Nigeria’s national treasury.The was based on a motion by the Vice Chairman, Senate Committee on Petroleum Resources, Ifeanyi Ubah. Ubah in his submission informed the Senate of the IOCs alleged refusal to honour the provisions of the Production Sharing Contracts Act.

According to the Senator, the Act of the National Assembly regulates the sharing of additional revenue between the Nigerian National Petroleum Corporation and the various oil companies.He also explained that the Deep Offshore and Inland Basin Production Sharing Contract Act Cap D3 LFN 2004 became effective on January 1, 1993 and was first reviewed in 2004.

Ubah asked the Senate to: “Mandate the Senate Committee on Petroleum Resources Upstream to investigate the reasons for the failure to review the salient provisions of the PSC Act, identify the best fiscal regime for the PSCs and review the provisions of the PSC Act to ensure that beyond the crude oil price of US$20, the share of the Federal Government of Nigeria (FGN) in the additional revenue is adjusted in accordance with the provisions of the Act.” Senator Stella Oduah, (Anambra North) equally blamed the NNPC for its lack of vigilance in ensuring that the IOCs keep their own part of the agreement.

“The price of crude oil has been on the increase since we make $20 the benchmark. Anytime it goes beyond that, they bring the balance to the table to share. They haven’t been doing that. I see it as NNPC negligence and recklessness. I do solely support that we call NNPC to order and ensure that this contract is implemented to the letter.” He submission was unanimously adopted and was put to voice vote by the Senate President.

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