Royal Dutch Shell Plc’s oil drilling unit in Nigeria is calling on the government to pass long-delayed laws to reform the country’s petroleum industry, which the Senate plans to start this month.
“For every month and every week that we delay, the mutual fund moves elsewhere,” said Bayo Ojulari, Managing Director of Shell Nigeria Exploration and Production Co., at an oil conference in Abuja. “We have the promise that it will appear in June. We’ve heard that before and we’re waiting to see it. “
First introduced in the Nigerian Parliament in 2008, the law would streamline the operation and financing of power plants in Africa’s largest oil producer. It would also regulate the oil industry and, according to lawmakers, attract more investment into the sector. Senate President Ahmad Lawan said Monday he expected the law to be passed this month.
Known as the Petroleum Industry Bill or PIB, the move has been halted by political disputes and objections from international oil companies that the government is demanding excessive revenue increases. The current version of the law includes contributions from all stakeholders.
“It is important to adopt the PIB, but we must all think together about how we can implement it to ensure that the energy transition does not make the PIB obsolete on the day it is adopted,” said Ojulari.
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