Deep Water Oil Operations Fetched Nigeria $46 Billion

Deep Water Oil Operations Fetched Nigeria $46 Billion -The Managing Director of Shell Nigeria, Mr Mutiu Sumonu, said on Tuesday that the Federal Government realised $46 billion from deep water operations of the oil industry.

Sumonu made this known at a discussion on, “The Petroleum Industry Bill and the future of Nigeria’s oil Industry”, at the ongoing 18th Economic Summit in Abuja.
“There is a perception out there that government is not making money from deep water, that the multinationals are making it from the deep water.

“Up to 2011 and we actually have deep water not too long ago, 2005, that was the first one. Up to 2011, government has made about $46 billion from deep water.
“The multinationals spent $46 billion because in deep-water, the multinationals put up all the investment, government does not put up any investment.

“So the multinationals put up the $46 billion and they have also realised about $11 billion but government has realised about $46 billion, so it is not true that government is not making any money from deep water.”
He said there was the need to strike a balance between government and industry’s take to enhance investment.

He urged the government to look at the issue of cost in the PIB more pragmatically, adding that cost should not be subject to legislation because “everyone will benefit if the business is done at a lower cost”.
Sumonu said it was a wrong perception that the multinational does not want the existence of the PIB.
“That is completely untrue, we want an industry that is efficient, so we believe that the fundamental objective of the PIB if they are achieved will give us efficiency in the running of the industry. We want an industry that is well funded.”

The Group Executive Director (Exploration and Production), Nigerian National Petroleum Corporation (NNPC), Mr Abiye Membere, said the government would remain open to discussions on basic issues in the PIB.
He said the PIB would create synergy between the government and the multinational companies to strengthen the sector.

The Chairman, House Committee on Banking and Currency, Mr Chukwudi Onyereri,  said the bill had passed second reading in the lower chamber of the National Assembly.
He urged the regulators and all the stakeholders in the industry to participate in the coming public hearing that would be conducted by the committee in the first quarter of 2013. (source:PM)