Exit of IOCs from Nigeria: Senate to investigate implementation of PIA

4 mins read

The Senate has mandated its Committee on Petroleum Upstream, Downstream and Gas to conduct a holistic investigation on the implementation of the Petroleum Industry Act (PIA) with regards to potential exit of International Oil Companies (IOCs) from Nigeria.

This was sequel to a Motion brought before the Senate by the Senator representing the Akwa Ibom North-East Senatorial District, Senator Aniekan Bassey, during Thursday plenary.

Senator Bassey, in his Motion, titled “Urgent Need for Enquiry into Implementation of the Petroleum Industry Act (PIA) 2021 with Regards to Potential Exit of International Oil Companies (IOCS) from Nigeria: Case of ExxonMobil in Akwa Ibom State,” prayed the Senate to intervene urgently in order to salvage the situation.

Read more: ‘You are not worthy’ Nigerians blast Tinubu after victory speech

The Senator expressed concern about the potential adverse effects of the exit of ExxonMobil from Akwa Ibom State including high loss of jobs, exit of professionals and service companies from Akwa Ibom, loss of revenue as well as abandonment of certain yet to be satisfied obligations.

He expressed worry that the new company taking over the assets and liabilities of ExxonMobil may not have sufficient capacity to successfully step into the ExxonMobil footprints and/or muscle the pending obligations hitherto managed by ExxonMobil in the oil producing states and host communities especially where clean-up is required or where capital intensive corporate responsibilities were commenced.

Senator Bassey noted that the processes regarding exit of ExxonMobil in Akwa Ibom State cannot be left in the hands of the NNPC and other regulators alone.

The lawmaker added that there was real need to involve all stakeholders for purpose of mapping, profiling, marking up, inventorizing and analyzing what ExxonMobil was doing in the oil producing states and host communities with a bid to obtaining clear undertaking that whoever takes over ExxonMobil would, in the interest of the state and her people, also take over all or a reasonable volume of those responsibilities previously undertaken by ExxonMobil.

Senator Bassey said he was “Aware that ExxonMobil offered to sell its entire onshore and shallow water facilities and business in Akwa Ibom State which is established fields and high-quality operations with a highly skilled local operational teams, track record of safe operations, high production rate as well as crucially extensive footprint in Akwa Ibom State, preparatory to its exit from its onshore and shallow water operations in the State and to focus on deepwater production.

Read more: We will  promoting local content to close skill gaps– Sanwo-Olu

But curious that the NNPC has the Right of First Refusal (RFR) and has notified ExxonMobil of its intention to exercise that Right of Pre-emption on ExxonMobil’s planned sale of its entire asset in Nigeria’s onshore and shallow waters but ExxonMobil proceeded to seal a deal with Seplat Energy Plc for that purpose.

“PIA has not made clear implementation plans for situations such as the now emerging trend of exit of the IOCs and has not holistically resolved issues bothering on protection of interest of the Federal Government, producing states, host communities or provided future assurances in the handling of situations such as the issue now in focus,” he explained.

Leave a Reply

Your email address will not be published.

Latest from Blog