The federal government has hinted that a stronger, larger petroleum industry regulator will emerge after the passage of the Petroleum Industry Bill.
Speaking at one of the breakout sessions of the 2nd Nigerian Economic Summit in Abuja Tuesday, Minister of state for Petroleum Dr. Ibe Kachikwu said “we are still working to make it better, by the time the senate and the entire national assembly finishes what they are doing we are going to see a much stronger, a much larger independent regulator.”
According to Kachikwu, “whatever model of PIB that we are pushing, the point that Dr Baru made is very, very key to see an independent regulator with very enormous powers, with less of political interference so that individuals could do their work and also whittling down the powers of the minister so that these institutions could work and work well.”
Kachikwu noted that “the reality is that no one will work as a minister forever, you are going to hand over that portfolio. We should be looking for the system surviving and been able to work well, so it’s something that we are working with the Assembly very hard on and I think if you look at the issues that come up, there are a lot of emphasis on that independence.”
Kachikwu also said “the federal government would develop Policies that ensures the global decline in fossil energy does not take Nigeria unawares, stating that government is already thinking in that direction.”
Kachikwu who moderated a panel discussion on energy in a break out session with the Group Managing Director of NNPC Maikanti Baru said “the federal government is currently dealing with the fundamentals of ensuring that the refineries work, and ensure availability of energy sources to meet our day to day energy needs.”
Kachikwu noted that, “the NNPC would have to take over the commercial aspects because they are going to be the one deploying it. As the Refineries get kitted up, we would continue to look at new fossils development programmes, and will see a need to pump out policies that would enable Nigerians see the advantages in terms of costs.”
Reacting to questions on the bidding for marginal fields, Kachikwu said “the government is determined to ensure transparency in the bidding process so that the public always gets to know who and who gets what and could monitor the progress.”
According to him, “these are some of the issues the Niger Delta communities are always inquiring about and indeed all Nigerians. The more transparent it is, the better for us. We are developing models to ensure better regulations geared towards transparency in the bidding process, and we would alert Mr. President as soon as we are done “Kachikwu notes further.”
Maikanti Baru, the GMD of NNPC in his own remarks at the panel raised concern that only nine out 14 of those who won the bidding process for the marginal fields are operating a development he described as “not good.”
He was however assured by the minister of state for petroleum, Ibe Kachikwu that “the Ministry of Petroleum Resources would work closely towards ensuring that concerns and constraints that had hindered the remaining companies who have not swung into action in the marginal oil fields are appropriately addressed.”
