Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called for a legislation that will compel multinational oil companies set aside a percentage of their crude oil production to refine locally.
PENGASSAN, in a statement, also called on the National Assembly to enact a law to compel International Oil Conpanies (IOCs) operating in Nigeria to build refineries in the country to bolster domestic supply of petroleum products.
“There should be a legal framework allocating certain percentage of the production by International Oil Companies (IOCs) operating in Nigeria for refining in the country through a policy that would compel them to build refineries in Nigeria,” the union said.
Nigeria produces around 2 million barrels per day of crude oil and the multinational companies including Shell, Mobil Producing, Chevron, Total and Agip, account for 90 percent of this output.
However, the country currently imports more than 85 percent of its fuel needs due to the inadequate local refining capacity as well as the poor performance of the existing four refineries managed by the Nigerian National Petroleum Corporation (NNPC).
The massive importation come at a huge cost to the Federation Account, which at the last count, amounted to N774 million a day, according to NNPC estimates.
PENGASSAN, while commending lawmakers for the passage of the Petroleum Industry Governance Bill (PIGB), 13 years after the first draft was submitted to the National Assembly, further urged “the lawmakers to expedite action on the Petroleum Industry Administration Bill, the Petroleum Industry Fiscal Bill and the Petroleum Host Community Bill to ensure the delivery of the full benefits of the intended Oil and Gas Reforms.”
The PIGB is yet to be sent to President Buhari for assent, more than 30 days after passage by the parliament.
TheCable
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