The passage of the much anticipated Petroleum Industry Bill (PIB) could make Nigeria the world’s 3rd largest holder of natural gas reserves, according to a former director of the Department of Petroleum Resources. Currently Nigeria holds the 9th place in natural gas reserves. The passage of the PIB would ensure that Nigeria grows its reserves and compete favorably in the global energy market.
Other benefits of the PIB passage will ensure that Nigeria becomes attractive for gas-based investments. Such investments will ensure that offshore exploration will proceed at greater depths, which can have large capital outlays. Other African countries are already leveraging their resources within the same time frame when the PIB and other required legislation was being stalled.
While countries like Algeria, which comes in at 10th place on the gas reserve list, hold the same position as the 10th largest gas producer, Nigeria holds the 28th position for gas production despite having the 9th place in gas reserves. This makes it imperative for the PIB to be assented soonest as Nigeria lags behind on oil industry issues and improvements.
The Petroleum Industry Bill (PIB) has been split into 4 parts for ease of passage; Petroleum Industry Governance Bill (PIGB), Petroleum Host and Impacted Community Bill (PHICB), Petroleum Industry Fiscal Bill (PIFB), and Petroleum Industry Administration Bill (PIAB). These bills are currently being processed and are expected to pass by 2018 ending.
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