Speakers at the KPMG oil & gas breakfast seminar held in Lagos were unanimous in their submission that Nigeria’s oil and gas sector is currently missing investments opportunities worth between $200billion and $400billion.
These oil and gas experts linked this due largely to uncertainty resulting from regulatory environment which puts on hold these investments, said
These speakers at the breakfast seminar linked the inability of these investments to berth in the oil sector to poor/unclear investment case for investors, unclear subsidy regime, misalignment between/within the industry, unfavourable access to capital market, poor enforcement of rules and regulations, unrealistic targets, and unclear/overlapping roles within the oil sector.
Bernard Bos, vice president, finance, Shell Exploration & Production Africa said “There are many more investments in Oil & Gas sector across the world compared to many years ago. In the U.S. for instance, government revolution has lured people into exporting gas. Oil and gas production from existing fields is declining and new investments are required. PIB is an ambitious bill leading to additional complexity, uncertainty and time consuming implementation. Draft PIB raises serious concerns as enablers are insufficient.”
He said: “the proposed PIB Joint Venture (JV) terms are not competitive when compared with other oil producing countries. Proposed PIB PSC terms are not competitive when compared with the global deepwater regimes. Non-fiscal PIB outcomes are highly uncertain for industry. NNPC and industry are not aligned on the impact of proposed PIB.”