Don't Miss


Home   >   Business   >   Industries   >   Energy   >   We are Worried About the Petroleum Industry Bill – Shell

We are Worried About the Petroleum Industry Bill – Shell

By on October 5, 2012

Shell HQ, Netherlands

Royal Dutch Shell’s Vice President for finance and strategy in sub-Saharan Africa, Bernard Bos, has made it clear that the PIB is giving many oil majors operating in the country sleepless nights.

The oilman said Nigeria has the scope for $400 million in new oil and gas investments provided the environment for investment improves.

He said, ““Many in the industry are worried about what the petroleum industry bill will do,” he said, referring to legislation to reform the regulation and funding of Nigeria’s oil and gas industry. “We need to try and unleash that investment.”

The PIB in its current form is proving unattractive to oil majors involved in crude ooil exploration and production as the new legislation ensures Nigeria benefits more from the revenues derived from production.

Last week, the minister of Petroleum Resources, Diezani Madueke said the new Production Sharing Formulas were in line with international best practices and countries like Angola, and Brazil were already ahead of Nigeria in ensuring that their countries secured fairer conditions for partnerships with the oil majors.

However the senior Shell executive said that the PIB would drive investments from Nigeria into other African countries and Australia.