Sen. Lawan Defends Amendment Of Production Sharing Contract Law

The Senate President, Ahmad Lawn has justified the move by the Senate to amend the production sharing contract law in the oil sector.

The Senate President said ” “it has become absolutely necessary for us to do so as a country so that we can generate more revenues from our endowments.”

Lawan disclosed this at the opening of the public hearing of the Deep Offshore and Inland Basin Production Sharing Contract 2004(amendment) Bill 2019.

He stressed that the Senate would ensures its maintained a competitive environment for businesses to continue to thrive while amending the law. Adding that the Senate would also ensured oil and gas business in Nigeria remained profitable.

The bill was sponsored by Senator Albert Bassey Akpan.

Lawan said “We want to attract more investments and therefore it is absolutely necessary that we engage in a process that we produce a win-win situation” for Nigeria and the business concerns in the oil and gas industry.

“Let me assure everyone here that the national assembly is determined to pass this bill and of course that will be a precursor to our determination to pass the Petroleum Industry Bill next year.”

The bill seeks to amend section 5 of the PSC Act to bring the provisions of that section into conformity with the generality of provisions of the Act and into congruence with the intendment and essence of Production Sharing Contracts.

It could be recalled that the Petroleum Industry Bill was first introduced in 2007 and the bill is yet to be passed in its entirety.

Lawan however noted the Senate would take another approach to ensure the passage of the PIB.

He said “We want to see a situation where the Legislature and the Executive work very closely to have a PIB that will attract investment into the oil and gas sector in Nigeria.

“An investment climate that will be competitive; we know we have other countries who have this product, and therefore we have to be competitive, we have to have an environment where the businesses make profit.

“This is a journey that involves everyone. We want both government – and that includes the legislature and executive on one hand and IOCs (International Oil Companies) to work together to ensure that this environment we are trying to create is an environment that will work for all of us.”