PIB – A Contrarian’s Fury

Last week on this platform I did an analysis of the current version of the Petroleum Industry Bill (PIB) – that contentious bill that has turned every Tunde, Emeka and Haruna to oil industry expert. The analysis received both kudos and knocks – with more of the former. However, like I mentioned, oil is one topic Nigerians discuss with fervour and passion. I was therefore not surprised at the reactions of both the protagonists and antagonists of the bill.

I got the article posted on Nairaland, Nigeria’s biggest online forum and I found rather interesting a knock from one of my co-forum members. JP Phillips– as his moniker goes- literally tore the bill into shreds.

Read him:

Jarus

It is disheartening that you carefully outlined the rosy prospects of the PIB but failed to include any implementation framework for those anticipated roses to really turn red. How I wished I was still in the kindergarten where we once believed that goats can fly.

You claim that the bill seek to achieve this: Create a conducive business environment for petroleum operations

My question is, how?

The PIB is clear on areas of increased taxation for producing companies which in your euphoria we expect our brothers to join that league soon.

My question is: how does increased taxation achieve your quote above?

That phrase above is too vague to be taken seriously, tell us in clear terms how the PIB wish to achieve that quote.

You also said PIB will enhance exploitation and exploration of petroleum resources in Nigeria for the benefit of Nigerians.

This is another silly and vague statement.

Which laws in the PIB will achieve the above?

The last time I checked, Nigerians especially the Niger Deltans have been at the receiving end of pains, agony and environmental degradation precipitated by oil exploration, I have not seen any part of the PIB that addresses that, or have you seen?

Which agency or MDA has the PIB empowered to handle that?

I was not surprised when you carefully skipped the flaring part of the PIB, where it stated that it will encourage Zero flaring with a caveat that Madueke will have the authority to issue renewable flaring permits.

How does that solve the green house issues associated with flaring? Or another Madueke’s gimmick for creating “choppings” for her exalted office. Let me ask you, how much do you think Madueke will charge through the backdoor for flaring permits? Your guess is as good as mine.

We cannot be bamboozled that the so called PIB is in the interest of Nigerians.

I have it on good authority to state here that 95% of indigenous oil and gas workers have no single insurance welfare.

We are talking about men and women who kiss their loved ones goodbye on a daily basis to face one of the riskiest activity in the history of mankind yet their ignoble employers deem it unfit to insure their lives.

Again, I ask, where does the PIB address that?

If an insurance policy does not mean well for Nigerians in the oil industry, I wonder what does.

In case you forgot, the Americans rated oil and gas exploration as the 8th riskiest job in the world which over the years has defined a noble welfare package for her citizens in that field.

Let me ask you again, where in the PIB does the Nigerian government peg a living wage for oil and gas workers in lieu of their occupational hazard?

If all these are not in place, how did jarus come to the sane conclusion that the PIB addressed the interest of Nigerians?

One may argue in ignorance that my concerns above are basically the duty of the union but I stand to be corrected that neither NUPENG nor PENGASSAN has a legal shot if they were to go to court in the absence of fundamental laws.

What leverage does an oil and gas employee have if he or she institutes a court action against an employer who has failed in the above regard?

Let me reiterate for the umpteenth time that oil and gas operations are not like teaching, banking or other conventional jobs, it a career where faith dangles life and death before anyone who is actively involved. From the terrain, non adiabatic conditions, logistics, climate, flammability of hydrocarbons to mention a few.

For the PIB to conveniently ignore those lucid but unequivocal challenges that average Nigerians face in the oil industry is an insult to people who live through it and a reflection of the incompetence Madueke is made of.

You said again and I quote: “(PIB will) optimize domestic gas supplies especially for power generation and industrial development”

This part is the most laughable. How I wish you read further to appreciate Madueke’s ingenuity. Madueke told Nigerians that her gas solution is a DSO from MNC’s.

Rightly put, Madueke wants to go begging for gas from multinational companies.
No doubt the PIB outlined modalities of expansion for NGC (Nigerian Gas Company),
my question is this: what has NGC achieved for over a decade of operation?

The case before the senate instituted by the Delta State elders has spoken volume of the modalities of acquisition Madueke has in mind for both NGC and NPDC.

Who are the so called partners, financiers, JV operators of the much touted marginal fields? Let me guess: politicians? Lip sealed.

Mr Jarus, we know the real beneficiaries of the PIB the Nigerian people are far from it.

Back to the issue of gas, in the last decade, SHELL, our minority JV partner, has been investing heavily in gas gathering projects, Chevron (another minority JV partner) has not relented because the last time i checked their EGTL project has gotten to phase 3b.

Every sane mind knows that gas is the future from increasing gas prices to local demand viz power plants, Madueke’s PIB is still solving Nigeria’s gas crises with her archaic DSO.

Jarus, please help me ask Madueke to mention any sane country with gas deposit as much as Nigeria that is practicing her DSO model?

Is it not commonsensical for Madueke to come out with a gas gathering blueprint to harness our abundant gas resources like our JV partners are doing? This gas we are flaring to the tune of $2.3b annually.

The last time she begged for refineries and now gas and Jarus is taking Madueke serious.

JP has very strong arguments no doubt, only that, out of his fury, he forgot that I had only done an analysis of the PIB. I was neither part of those that drafted it nor claimed to have spoken for Madueke.

I however concede that, in my analysis, I should have mentioned the low-sides of PIB too. My essay appeared a full endorsement of the PIB as flawless. I agree I should have included a paragraph, at least, to highlight the downside of PIB too, if not for anything, for balance.

Yet, I disagree with Philip that PIB is useless. The problem with Nigeria is hardly laws, but implementation. That is my biggest fear for PIB, even if all of JP’s holes are fixed. Are the people to implement PIB going to come from Mars? That is my own biggest worry, yet I give them benefit of doubt.

I also take exception to JP’s reduction of PIB to Madueke alone. Yes, the buck practically stops at her desk for now, and we cannot deny the fact that she has strong influence in PIB, but we should not forget that the bill predates her. The bill has been on the table before Madueke became petroleum minister, and we cannot say everything put in the first draft of the bill has been substituted for her wishes.

Save a couple of areas of divergence listed above, I agree with JP that PIB is not may not be a cure-all pill. I also have reservation about the treatment of gas flaring in the draft. But I still believe PIB, as it is, if well implemented, will still add value to the country at the end, no matter how marginal