PIB must review process for awarding oil, gas licenses

Ambrose Nnaji

The Program Coordinator, Nigeria Natural Resource Charter (NNRC), Tegi George-Ikoli has said that the new licensing system in the Petroleum Industry Bill (PIB) must review the process for awarding oil and gas licenses.

She stated this during the launch of the 2019 Benchmarking Exercise Report (BER), in Lagos, with the theme: “Examining Nigeria’s Management of Her Petroleum Wealth, 2019”

Nation Update gathered that the Natural Resource Charter (NRC) was a set of principles intended for use by governments, societies and the international community to determine how best to manage natural resource wealth for the benefit of current  and future generations of citizens.

The Nigeria Natural Resource Charter (NNRC) George-Ikoli said implements the NRC in Nigeria adding that it’s a non-profit policy institute that promotes the effective management of natural resources for public good.

She said a good petroleum industry bill must clarify who is responsible for awarding licenses, provide a framework for the transparent award of licenses. Again, it must limit discretionary powers in the award of licenses, and outline the process for screening license applicants as well as provide legal backing for periodic license rounds.

She added beyond the award of licenses, a good PIB also needed to address how the licenses awarded were monitored. According to George-Ikoli, the bill must provide for clear legal rights and obligations for the licensee, empower the regulator to monitor the licensee’s performance under its license through appropriate funding, capable personnel among others.

The PIB must also ensure the rigours applicable to the award of licensees were extended in its regulation of the transfer of licenses to fresh licensees, she added.

The NNRC according to her implements the Natural Resource Charter (“NRC”). The NRC “was a set of principles intended for use by governments, societies, and the international community to determine how best to manage natural resource wealth for the benefit of present and future generations of citizens”, adding the charter has twelve precepts which address different policy issues and areas to govern the petroleum industry of a country successfully.

She noted that the institutional framework of Nigeria’s oil and gas industry was a central plank/board of the proposed PIB reforms adding the NNRC’S seeks to link Nigeria’s overall national strategy for the oil and gas industry to the legal and institutional frameworks which underline them.

She insisted that “resource management should secure the greatest benefit for citizens through an inclusive and comprehensive national strategy, clear legal framework and competent institution.

George-Ikoli also said the PIB must streamline and clarify the objectives of the National Oil Companies (NOC), and put in place a robust governance framework, and ensure it was able to appropriately fund its activities among others.

She noted the PIB offered an opportunity to reform the NOC and ensure that it provided more value for Nigerians.