By BASHIR BELLO, Abuja.
Chairman Senate Committee on DownStream Petroleum sector and the chairman of the PIB at the National Assembly, Senator Sabo Mohammed Nakudu has expressed satisfaction with the passage of the Petroleum Industrial Development Bill into law by the 9th Assembly.
He revealed that the among the highlights of the PIB bill passed into law, the senate has approved 3 % of the total earnings to be set aside for the development of areas where oil are explored.
He explained that oil firms involved in exploring oil in host communities are now required to set aside 3% of their total earnings in a year. The earnings would be put in a special account.
“If there is a pipeline rupture, monies would be drawn from the special account and used to repair the pipe.
If there is an oil spillage, monies would be drawn from the fund to clear up the community where the oil spill occured.
“If any member host community burns a vehicle belong to oil company, monies would be drawn from the account and replace the burnt vehicle.
“So if any oil community wants to develop, it would ensure the smooth operation of oil firms, the Senator said.
However, Senator Nakudu also explained that the 13% for oil development areas still remains.
On the Frontier Exploration, Kudu said that 30% derivation fund has been set aside to be for the development of areas where there are oil deposits but no investors are willing to invest in such areas. The Chairman, Joint Committee on PIB and Gas added that the Nigerian National Petroleum Corporation is empowered to prospect for oil within such areas with the 30% derived funds.
Speaking further, Nakudu added that with the passage of the bill, the NNPC is no longer a government parastall but an oil firm just like shell, Chevron and other foreign oil corporation.