HeadlinesOil & Gas Senate passes PIB, as host communities gets three per cent operating expenditure By maritimemag July 2, 202160 views ShareTweet 0 Chinazor Megbolu The Senate has on Thursday passed the Petroleum Industry Bill (PIB) as host communities gets three per cent operating expenditure of oil companies. The bill, which was passed after a much heated argument from members, has been ongoing since the tenure of former President Olusegun Obasanjo between 1999 and 2007. The PIB was passed after a third reading by the Chairman, Joint Committee Petroleum (upstream and downstream) and gas, Mallam Mohammed Sabo, presented a report and its clauses were put to voice vote. He said the legislation is aimed at promoting transparency, good governance and accountability in the oil and gas industry. Sabo also noted that the committee recommended that 30 per cent of Nigeria National Petroleum Corporation (NNPC) profit from oil and gas should be used to fund exploration of frontier basins. “The various obsolete laws currently in operation in the country have been updated and consolidated in this chapter to meet global competitiveness and best practices. “A total of 355 amendments were recommended to this chapter while others were retained,” Sabo said. During the consideration of the bill in the committee of the whole as well as at the public hearing, representatives of the host communities demanded for 10 per cent allocation even though five per cent was proposed. The joint committee recommended three per cent after a meeting of the Senators with the Minister of State for Petroleum Resources, Timipre Sylva and the Group Managing Director, NNPC, Dr. Mele Kyari, which three per cent was accepted as what is due to host communities. Meanwhile, the Senator representing Delta south, Mr. James Manager, in his remarks, said five per cent was not too much for the host communities. However, the bill, which has five parts, eight schedules and 319 clauses, was finally passed. © 2021, maritimemag. All rights reserved.