Total E&P Nigeria Limited (TEPNG) has commended the forthcoming approval of Nigeria’s Petroleum Industry Bill (PIB) with high optimism that it will open the door for new investments into the country’s oil and gas industry.
“[Total] is keen to continue to invest in Nigeria and to contribute constructively to the ongoing debate about the Petroleum Industry Bill,” said Mike Sangster, Managing Director of TEPNG, at the Society of Petroleum Engineers’, Nigeria Energy Industry Transformation Summit.
“We welcome the efforts being made by the authorities to define a long-term framework for the oil and gas industry that provides clarity and certainty, but it must also provide attractive terms and a win-win solution for the country and investors in order to entice sufficient capital in an ever more competitive world.”
The approval of the Bill comes at a particularly challenging time for the industry, in which COVID-19 has forced oil and gas firms to re-examine their strategies to ensure sustainability.
Sangster stated that Total is dedicated to delivering clean, affordable energy and being part of the solution to climate change by increasing investment in renewable energy and low-cost oil and biofuels and promoting the use of natural gas and hydrogen. Total will also be investing in carbon sinks that are essential to achieving carbon neutrality.
“Our investment in the Nigerian Liquefied Natural Gas, from the beginning until now, is partly derived from our commitment to the production of cleaner and better energy,” said Sangster. “At the Group level: Total’s ambition is to become the responsible energy major and to get to Net Zero carbon emissions by 2050.”
….New Bill to Include Reduction of Taxes on Onshore, Shallow Water Licences
“Not unmindful that the industry players are of the view that the current level of taxation on onshore and shallow water operation is excessive”, Timipre Sylva, the Minister of State for Petroleum Resources, has declared.
“Therefore, proposed petroleum industry bill (PIB) should include the significant lowering on these taxes for new investments and for existing operations”, he explained.
“Lowering of royalties is contemplated, particularly for low levels of production per field”. It is therefore our hope that the future is more positive and attractive for the Nigerian petroleum industry after the passage of the PIB”. The Honourable Minister Stated.
The Minister, who made this clarification known at the Nigerian Association of Petroleum Explorationists (NAPE) forum, emphasized the present government utmost commitment and enabling environment in fighting the COVID-19 pandemic in the short term approach.
“we are proposing in the new law, a grandfathering”, which, in his view “will preserve current government while also guaranteeing investors return. It also guarantees that investors can continue with existing operations while earning favourable returns”.
“Be based on core principles of clarity, dynamism, neutrality, open access and fiscal rules of general application.” He concluded.
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