Senate Investigates Poor Implementation Of PIA

The Senate has commenced investigation into the poor implication of the Petroleum Industry Act (PIA).

The red chamber has mandated its committees on Petroleum (Upstream), Down Stream, and Gas to conduct a holistic investigation into the implementation of the Petroleum Industry Act (PIA), with regard to the potential exits of International Oil Companies (IOCs) from Nigeria.

The Senate passed the resolution following its consideration of a motion on the “Urgent need for an inquiry into Implementation of the Petroleum Industry Act (PIA) 2021 with regards to the potential exit of International Oil Companies (IOCS) from Nigeria: Case of ExxonMobil in Akwa Ibom State,” sponsored by Senator Aniekan Etim Bassey (PDP, Akwa-Ibom North-East).

Leading the debate on the motion, Bassey noted how the discovery of gas and oil in commercial quantities in Nigeria led to the entry of international oil companies (IOCs), in Nigeria with the intention of advancing the sector’s exploration, development, and production.

According to him, “the IOCs went into Joint Venture (JV), contracts with the federal government through the NNPC (Now NNPC Ltd).

In the case in point, the NNPC holds 60 per cent while ExxonMobil holds 40 per cent shares in the JV between the NNPC and ExxonMobil.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top