The Nigerian Senate has taken action to investigate the implementation of the Petroleum Industry Act (PIA) following concerns over the potential departure of International Oil Companies (IOCs) from Nigeria. The Senate has directed its Committee on Petroleum Upstream, Downstream, and Gas to conduct a thorough examination of the PIA’s implementation.
The decision to launch this inquiry comes after a motion was presented to the Senate by Senator Aniekan Bassey, representing Akwa Ibom North-East, during Thursday’s plenary session. The motion, titled “Urgent Need for Enquiry into Implementation of the Petroleum Industry Act (PIA) 2021 with Regards to Potential Exit of International Oil Companies from Nigeria: Case of ExxonMobil in Akwa Ibom State,” raised concerns about the potential adverse effects of IOCs, such as ExxonMobil, leaving Nigeria.
Senator Bassey highlighted the possible consequences of such exits, including a substantial loss of jobs, departure of professionals and service companies, loss of revenue, and the abandonment of unfulfilled obligations. He also expressed apprehension about the capacity of new companies taking over IOCs’ assets and liabilities and their ability to fulfill corporate responsibilities, particularly in oil-producing states and host communities.
In his plea to the Senate, Senator Bassey stressed the need for all stakeholders to be involved in mapping, profiling, and analyzing the responsibilities previously undertaken by IOCs like ExxonMobil. He urged the Senate to ensure that the new companies taking over these assets commit to continuing these obligations in the best interest of the state and its people.
The Senator raised concerns about the lack of workable coordination or a clearinghouse for the PIA’s implementation, particularly in coordinating vital petroleum sector changes with significant consequences for host communities, cities, and states.
The Senate’s motion acknowledges the historic arrival of IOCs in Nigeria for the exploration, development, and production of oil and gas. It also notes that IOCs entered into Joint Venture contracts with the Federal Government through the Nigerian National Petroleum Corporation (NNPC) and shared responsibilities for capital expenditure and proceeds in corresponding proportions.
This investigation reflects the Nigerian Senate’s commitment to addressing potential challenges arising from the implementation of the PIA and its implications for the country’s oil and gas sector. The Senate aims to ensure that the transition from IOCs to new operators is well-managed to protect the interests of the nation and its citizens.