This could be a positive for the EEZ, JDZ , CHAD, and Kenya. IMO.
PIB Back on IOC Hot Seat
Date: Friday, September 28, 2012
Nigeria's Petroleum Industry Bill (PIB), which has been making the rounds for
years in various forms, will halt new investment if it is passed, an ExxonMobil
executive told a forum on the bill in Lagos. Mark Ward, head of the US
supermajor in Nigeria said that the if the PIB is passed into law in its current
form, it would stop new investments from foreign firms due to its onerous fiscal
terms.
Nigeria's minister of oil, Diezani Alison-Madueke said the bill was fair to the
government, oil firms, and Nigerians, however the major E&P firms operating
there do not agree.
"Quite frankly, the extremely large investments that are needed are seriously at
risk under the proposed PIB [Petroleum Industry Bill] terms," Ward told the
forum. If the bill passes without significant changes, "the government's
aspirations to grow the business and the industry will not be met," he said.
Ward went on to say that the PIB could push the government's take of oil
revenues to above 90%, leaving operators with not much left for their effort.
"Nigeria is already one of the most onerous fiscal regimes and now the
government wants to make it tougher?...That is something we don't understand,"
Ward said.
Any hopes of expanding lucrative offshore production would be quashed if the
bill passes unchanged, Ward said. "For deepwater: we're done. There are no
investments that can be supported under the current terms of the PIB," Ward
said.
AI
Market Data 
Markets 
