The CEO of Yinka Folawiyo Petroleum Company Limited; operator of the Aje field, offshore Lagos, has identified gaps in the Petroleum Industry Governance Bill (PIGB) passed by the Senate at a breakfast lecture entitled: “Petroleum Industry Bill: Challenges and opportunities,” organised by the Island Club at Onikan, Lagos, The Nation reports.
Mr. Tunde Folawiyo; said: “When the BPE holds 49 per cent of an asset we all know what that means. It means we are preparing for another public ownership. BPE is not set up to own asset; it was set up to privatise public assets.”
According to him, there is “nothing in the proposal that has provision to reduce gas flaring, which is one of the major challenges the country is facing. It will not also be subject to the Procurement Act. This appears counterproductive. Accountability and transparency will suffer for this.”
He added; “[There is] no provision about ownership of pipelines, depot and other assets of government. Nothing is also mentioned in terms of pricing mechanism for the downstream sub-sector.” However, opportunities are abound in the bill, which is a great start for the oil sector, he said.