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Reps probe IOCs over labour laws violation

House of Representatives has urged the federal government to review the contract terms in the Production Sharing Contract (PSC) with a view to accommodating gas terms such as: gas development agreements, cost recovery, profit sharing, among others. Reps probe IOCs.

The House also mandated its Committee on Gas to effect amendment of the PSC Act with a view to accommodating these gas terms accordingly. The House decision followed the adoption of a motion yesterday moved by Hon. Kolawole Lawal at plenary. He explained that the PSCs for offshore blocks were designed for oil and as a result, the terms for gas in it are either vague or non-existent and were never addressed by the Nigerian Gas Master Plan (NGMP). Reps probe IOCs.

The lawmaker said considering the fact that gas is set to take over the petroleum industry because of the quest for alternative energy sources, hence, the neglect of income from gas only spells doom for the economy as there’s no check on the fraudulent activities of operators.

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Lawal noted that the first gas supply from Bonga Field, known as OML 118, was carried out by Shell Production Distribution Company (SPDC) and was delivered via Offshore Gas Gathering System (OGGS) owned by Shell Nigeria Exploration and Production Company Limited (SNEPCO) to train three of Nigerian Liquefied Natural Gas (NLNG).

The lawmaker noted that SNEPCO and SPDC operate as separate organisations with separate managements, thus, while SNEPCO runs the PSC operations, SPDC runs the Joint Venture operations of Shell in Nigeria. Lawal, however, expressed worry about reports on OML 118 where the revenues for gas resources are not remitted as a result of the clear lack of gas clauses in the PSC governing Oil Prospecting Licence (OPL).

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