In a recent webinar organized by the Natural Resources Energy and Environment Committee (NREEL) of the International Law Association Nigerian Branch, in collaboration with Piquancy Solicitors, experts and stakeholders convened to discuss the critical issues surrounding the Petroleum Industry Act (PIA) and its impact on Nigeria’s oil and gas sector. The event, titled “The Impacts of Petroleum Industry Act (PIA) on the Development of Oil and Gas in Nigeria,” occurred on September 28, 2023, and featured insightful discussions and recommendations.
Dr Ayodele Oni an Energy Expert from Bloomfield LP during the Webinar advocated the need to strengthen the Petroleum Industry Act (PIA) for the stabilization of the nation’s oil and gas sector.
The webinar titled “ The Impacts of Petroleum Industry Act (PIA) on the Development of Oil and Gas in Nigeria” was organized by the Natural Resources Energy and Environment Committee (NREEL) of the International Law Association Nigerian Branch in collaboration with Piquancy Solicitors and moderated by the Secretary of the Committee, Mr Feranmi Kehinde.
The session had in attendance the Vice President of ILA Nigeria Branch,Oludayo Olorunfemi among the many other participants that attended the webinar
While commending the efforts of stakeholders especially the legislature in the enactment of the law, Dr Oni, however added that, ” a great piece of legislation isn’t sufficient to attract investors as it is no guarantee of a good business environment.”
According to him, willing investors apart from considering the PIA, would looked into othe factors such as the geological and many other considerations before commenting their resources into the sector.
He said, ” Investor considerations would start with the geology of the area i.e., the availability of oil and gas, as this ensures that after investing in exploration and exploitation, oil and gas would be found in commercial quantities to justify the investment; the fiscal consideration such as taxation, monetization and the Contractual & Legal factors that deal with this kind of contractual arrangements, joint ventures and production-sharing contracts.
” Nigeria must do more than just promulgate a new regulation, as the current investment realities of the Nigerian oil and gas sector confirms that the inflows of foreign investments crashed by Twenty-eight percent (28%) to US$1.1 Billion in Q1 2023 from 1.65 billion in Q1 2022. The performance in comparison with Q4-2022 represents an improvement of 6.8%, based on data provided by the Nigerian Economic Summit Group.
” According to The National Bureau of Statistics (NBS”), foreign investment inflow into the oil and gas sector accounts for 0.13% of fresh foreign investments in Q1 2023.”
He advocated , ” the three pillars of security of oil & gas investments to be put into consideration which are Stability, Right to monetize and Enforceable International Arbitration. “
Speaking, the NREE-ILA Chairperson, Oluwaseyi Ebenezer in a statement released after the event, commended stakeholders for joining the session, identified challenges confronting the nation’s energy and environmental sectors and the improvement of the well-being of the citizens.
” The petroleum sector stake is incredibly high in Nigeria as the PIA is not just an any-type legislation, but a testament to Nigeria’s Economic maturity, diversification and economic growth. The NREE-ILA Chairperson ended her address by encouraging the audience to take advantage of the webinar to engage in constructive discussions on the PIA, ” the statement reads.
A member of the ILA Nigerian NREE Committee, Nenritmwa Gotodok in her closing remarks appreciated Dr Oni for his contributions on the subject matter and, ” for his wonderful insights and perspective, and also thanking him for sharing his wealth of knowledge and experience with the audience. “
