There are strong indications that the Federal Government is looking to review the commercial terms of deep-water Production Sharing Contracts in order to increase its share of revenue from the PSC production.
The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, dropped the hint at the 45th Convocation Ceremony of the University of Nigeria, Nsukka, where he made a presentation on ‘Oil Resource Management and Implications on National Security and Economic Survival, a copy of which was obtained by our correspondent.
The nation’s oil and gas production structure is majorly split between joint ventures onshore and in shallow water with foreign and local companies and PSC in deepwater offshore.
According to him, the terms were supposed to have been reviewed in 2005 when oil price exceeded $20.
He noted that inefficient JV cash call management system resulting in underfunding of government equity interest and huge unpaid cash call arrears (estimated by the industry at over $5bn) remained an issue, “in addition to low government revenues from deep water PSC production due to government inability to effect review of commercial terms since the commencement of production from Bonga Oil field in 2005 when oil price exceeded the $20 per barrel review threshold.”
Highlighting the plan for the Nigerian oil and gas industry for the next three years, Kachikwu disclosed that there would be “adjusted government take in large deep offshore oil fields in line with the provisions of the Deep Offshore and Inland Basin Act.”
He added that the ambiguities and current impasse between PSC contractors and government in the interpretation of certain clauses of the Act would be addressed.
According to the minister, the nation’s current production level of about 2.2 million barrels per day comes from JVs with international oil companies which account for about 46 per cent of production; PSCs account for about 42 per cent of production, while independents and marginal field operators account for about 12 per cent.
He said the government would establish stable, simple to administer and competitive oil and gas fiscal framework that would encourage continuous investments by global industry players and deliver optimum royalties and taxes to government.
Kachikwu said significant improvements in governance, macroeconomic and fiscal policies were critical to harnessing oil and gas resources for the sustainable development of the country.
According to the minister, part of the three-year plan is to relieve government of monthly cash call funding and create a sustainable self-funding arrangement for government equity in existing JVs where operating costs and capital allowances are retained to maintain current production while capital requirements for growth in oil and gas production are sourced through part of generated profits and external loans.
University Of Ibadan (UI) Goes Digital, Releases Timetable for Virtual Academic Session
University of Ibadan (UI) on Friday announced it is going ahead with resumption on February 20 despite the second wave of COVID-19.
In a statement released by the school, the First Semester of the 2020/2021 academic session will commence virtually on February 20, 2021.
The virtual academic session will last for 13 straight weeks and end on Friday May 12, 2021, while the matriculation ceremony will hold on Tuesday March 16, 2021.
The University of Ibadan also scheduled one week for the Finalization of Continuous Assessment, to begin from Mon. 17 May and ends Friday 21 May.
The rising number of COVID-19 cases has compelled the Senate to approve the virtual academic session in an effort to ensure the tertiary institution abides by the protocols established by the Federal Government to curb the spread of the pandemic.
“It, therefore, agreed that the 2020/2021 First Semester lectures will be delivered online. In this regard, students will not be accommodated on campus,” a statement from the school said.
“Senate also approved the cancellation of the 2019/2020 session. The next session is, therefore, renamed 2020/2021 Academic Session. Consequently, students who have been admitted for the 2019/2020 session will now be regarded as the 2020/2021 intakes.
“Kindly note that online opening of Registration Portal and Orientation Programme for the 2020/2021 intakes may commence ahead of the Sat 20/02/21 date indicated above,” the statement said.
House of Representatives Impeached Trump Over Capitol Invasion
The United States House of Representatives on Wednesday impeached President Trump for the second time after instigating the US Capitol invasion.
Led by Speaker of the House, Nancy Pelosi, 232 representatives, including 10 Republicans, voted to impeach the outgoing president against 197 that voted for him to remain in the office for the next six days when he would handover to the president-elect, Joe Biden.
The ten Republicans were Representatives Liz Cheney of Wyoming, the party’s No. 3 leader in the House; Jaime Herrera Beutler of Washington; John Katko of New York; Adam Kinzinger of Illinois; Fred Upton of Michigan; Dan Newhouse of Washington; Peter Meijer of Michigan; Anthony Gonzalez of Ohio; David Valadao of California; and Tom Rice of South Carolina.
Speaking before the vote, Pelosi said “a constitutional remedy that will ensure that the Republic will be safe from this man who is so resolutely determined to tear down the things that we hold dear and that hold us together.”
“He must go. He is a clear and present danger to the nation that we all love,” she said, adding later, “It gives me no pleasure to say this — it breaks my heart.”
Republicans, who unanimously stood behind president Trump in 2019 during his first impeachment, were divided this time over the attack on Capitol.
A Republican representative from California, Kevin McCarthy, said “The president bears responsibility for Wednesday’s attack on Congress by mob rioters,” Mr. McCarthy said. “He should have immediately denounced the mob when he saw what was unfolding.”
US Congress Declares Joe Biden as The 46th President of The United States After Trump Mob Left
The joint congress of the United States on Thursday, January 7, 2021 certified Joe Biden as the 46th President of the United States following President Trump’s mob action that disrupted the congress joint proceeding on Wednesday.
After ordering his followers to disrupt proceedings on Wednesday, President Trump later announced that there will be an orderly transition on January 20.
“Even though I totally disagree with the outcome of the election, and the facts bear me out, nevertheless there will be an orderly transition on January 20th,” Trump said in a statement issued by White House Deputy Chief of Staff Dan Scavino.
“I have always said we would continue our fight to ensure that only legal votes were counted. While this represents the end of the greatest first term in presidential history, it’s only the beginning of our fight to Make America Great Again!” Trump added.
While the certification was just a mere formality as Biden had secured enough electoral college votes (270) required to clinch the world’s most powerful seat, the refusal of Donald Trump to accept the results of the November 2020 election made the session a keenly watched, especially after Trump mob disrupted a joint session of the Senate.
Finance4 weeks ago
Central Bank Closes 42 Microfinance Banks
Finance4 weeks ago
Zenith Bank Invests Over N12 Billion in Targeted Interventions, Posts N178 Billion PAT
Finance4 weeks ago
CBN Closed All Naira Accounts of IMTOs
Cryptocurrency4 weeks ago
US Securities and Exchange Commission Goes After Ripple(XRP)
Crude Oil4 weeks ago
Brent Crude Oil Dropped 1.9 Percent Amid Fast-spreading New Coronavirus
News2 weeks ago
Heartbroken American Mistress Displays Dangote’s Buttocks in a Viral Video
News4 weeks ago
Nigeria Prefers NIN Linked SIM Cards to Health as Crowd Gathers at NIMC Enrolment Centres
News2 weeks ago
FCMB Group MD Links to Death of Tunde Thomas, Husband of Married Staff He Fathered Her Kids