Jarus: WHAT DOES PIB SEEK TO ACHIEVE?

The Bill seeks to:
• Enhance exploitation and exploration of petroleum resources in Nigeria for the benefit of Nigerians
• Optimize domestic gas supplies, especially for power generation and industrial development
• Encourage investment in Nigerian petroleum industry
KEY IMPLICATIONS/OBJECTIVES TO NOTE FROM THE ABOVE

• Gas is still in Nigeria and the potential from this source of energy lays untapped. PIB seeks to maximize this. If well explored, this will boost power supply in Nigeria

http://jarushub.com/2013/05/20/beyond-the-jargons-pib-for-dummies/

akiesony: Very incisive article, Jarus. You are obviously following the PIB very closely. I look at the PIB as the key that will open the oil industry to more Nigerians.
Jarus, do you have any insights as to specific biz opportunities one can begin to plan for? If the gsm boom is a taste of what to come, the smart guys are already making contacts in China.
Shoot me a mail if you can Jarus.

heisenberg33: @Jarus nice write up, i myself have been following the events surrounding the PIB. My question to you is, do you anticipate any form of job loss for the DPR and NNPC staff? For example if the DPR is unbundled, do you think there would be any lay-off?

Jarus:

Although, th govt will not want to lay off so as to be politically correct and avoid friction, I anticipate gradual and systemic (rather than massive) layoff of some guys. They can just come up with a policy like anybdoy that has spent 20 years to go, or commission a professional firm to carry out staff audit, and using that as a basis to send away redundant/incompetent employees. It may not be immediate though.

All will be hinged on efficient management of oil industry agencies which is one of the objectives of PIB.

jp philips:

i quote

" Optimize domestic gas supplies,
especially for power generation and
industrial development"

this part is the most laughable. how i wish you read further to appreciate madueke's ingenuity.
Madueke told Nigerians that her gas solution is a DSO from MNC's.

rightly put, madueke wants to go begging for gas from multinational companies.
no doubt the PIB outlined modalities of expansion for NGC (Nigerian gas company),
my question is this; what has Ngc achieved for over a decade of operation?



Mr jarus, we know the real beneficiaries of the PIB the Nigerian people are far from it.

back to the issue of gas, in the last decade, SHELL our minority jv partner has been investing heavily in gas gathering projects, Chevron (another minority jv partner) has not relented because the last time i checked their EGTL project has a gotten to phase 3b.

every sane mind knows that gas is the future from increasing gas prices to local demand viz power plants, madueke's PIB is still solving Nigeria's gas crises with her archaic DSO.

jarus please help me ask madueke to mention any sane country with gas deposit as much as Nigeria that is practicing her DSO model?

nathx: Truth be told, with all the money state govt and NDDC is getting, nothing is being done. The 10 percent going to the community, who gets it, the same government that will still steal it.
I work I̶̲̥̅̊n̶̲̥̅̊ the field, companies give contracts to an indegenous contractor, he settles his community and do α very low standard job, nottin d conpany can do, the same circle continues.
Sincerely, the PIB would do nottin for the community, it will only enrich the few community leaders and madueke.

jp philips: @ jarus

it is disheartening that you carefully outlined the rosy prospects of the PIB but fail to include any implementation framework for those anticipated roses to really turn red.
how i wish i was still in the kindergerten where we once believed that goats can fly.

you claim that the bill seek to achieve this

" • Create a conducive business
environment for petroleum
operations"

my question is how

the PIB is clear on areas of increased taxation for producing companies which in your euphoria we expect our brothers to join that league soon.
my question is:

how does increased taxation achieve your quote above?

that phrase above is too vague to be taken seriously, tell us in clear terms how the PIB wish to achieve that quote.

you said and i quote

" Enhance exploitation and
exploration of petroleum resources in
Nigeria for the benefit of Nigerians"

this is another $¡lly and vague statement

which laws in the PIB will achieve the above??

the last time i checked, Nigerians especially the Niger daltans have been at the receiving end of pains, agony and environmental degradation precipitated by oil exploration, i have not seen any part of the PIB that adressed that or have you seen?

which agency or MDA has the PIB empowered to handle that?

i was not suprised when you carefully skipped the flaring part of the PIB, where it stated that it will encourage Zero flaring with a caveat that madueke will have the authority to issue renewable flaring permits.

how does that solve the green house issues associated with flaring? or another madueke's gimmick for creating "choppings" for her exalted office. lemme ask you, how much do you think madueke will charge through the backdoor for flaring permits?? your guess is as good as mine.

we cannot be bamboozled that the so called PIB is in the interest of Nigerians.

I have it on good authority to state here that 95% of indigenous oil and gas workers have no single insurance welfare.

we are talking about men and women who kiss their loved ones goodbye on a daily basis to face one of the riskiest activity in the history of mankind yet their ignoble employers deem it unfit to insure their lives.

again i ask, where does the PIB address that?

if an insurance policy does not mean well for Nigerians in the oil industry, i wonder what does.
in case you forgot, the Americans rated oil and gas exploration as the 8th riskiest job in the world which over the years has defined a noble welfare package for her citizens in that field.

let me ask you again, where in the PIB does the Nigerian govt. peg a living wage for oil and gas workers in lieu of their occupational hazard?

if all these are not in place, how did jarus come to the sane conclusion that the PIB addressed the interest of Nigerians?

one may argue in ignorance that my concerns above are basically the duty of the union but i stand to be corrected that neither NUPENG nor PENGASSN has a legal shot if they were to go to court in the absence of fundamental laws.

what leaverage does an oil and gas employee have if he or she institutes a court action against an employer who has failed in the above regard?

let me reiterate for the upteenth time that oil and gas operations are not like teaching, banking or other conventional jobs, it a career where faith dangles life and death before anyone who is actively involved. from the terrain,non adiabatic conditions,logistics, climate, flammability of hydrocarbons to mention a few.

for the PIB to conviniently ignore those lucid but unequivocal challenges that average Nigerians face in the oil industry is an insult to people who live through it and a reflection of the incompetence madueke is made of.

you said again and i quote

" Optimize domestic gas supplies,
especially for power generation and
industrial development"

this part is the most laughable. how i wish you read further to appreciate madueke's ingenuity.
Madueke told Nigerians that her gas solution is a DSO from MNC's.

rightly put, madueke wants to go begging for gas from multinational companies.
no doubt the PIB outlined modalities of expansion for NGC (Nigerian gas company),
my question is this; what has Ngc achieved for over a decade of operation?

the case before the senate instituted by the delta state elders has spoken volume of the modalities of acquisition madueke had in mind for both NGC and NPDC.

who are the so called partners, financiers, jv operators of the much touted marginal fields? lemme guess, politicians? lips sealed.

Mr jarus, we know the real beneficiaries of the PIB the Nigerian people are far from it.

back to the issue of gas, in the last decade, SHELL our minority jv partner has been investing heavily in gas gathering projects, Chevron (another minority jv partner) has not relented because the last time i checked their EGTL project has a gotten to phase 3b.

every sane mind knows that gas is the future from increasing gas prices to local demand viz power plants, madueke's PIB is still solving Nigeria's gas crises with her archaic DSO.

jarus please help me ask madueke to mention any sane country with gas deposit as much as Nigeria that is practicing her DSO model?

is it not commonsensical for madueke to come out with a gas gathering blueprint to harness our abundant gas resources like our jv partners are doing? this gas we are flaring to the tune of $2.3b annually.

the last time she begged for refineries and now gas and jarus is taking madueke serious.

jp philips: Mr jarus, madueke's DSO cannot pass for a gas model in this 21st century, even animals will find it ludicrous.

you mentioned and i quote;

" Encourage investment in Nigerian
petroleum industry"

how is the PIB encouraging investments in the pet. industry? increasing taxes i guess? jarus wake up!

lemme ask you again? who are the people that has the capital required to invest in the oil industry? civil servants or politicians?

of course, at the demise of willbros, ibori's Ascot took over, does it ring a bell?
who is minning OKORO field today? should i remind you? Rilwanu lukman perhaps Afren rings a bell.
Akpo field nko? 35% goes to Sapetro, and who is sapetro? Ty danjuma.

Mr jarus i ask you again, who is actually benefiting from this indigenization galore as enshrined by the PIB? the Nigerian people or the politicians?

while you are still thinking let me quickly take you to the ports aka free trade zones the seat of oil and gas logistics.

previous sane administrations had made all FOT's and FLT's free trade zones to reduce logistics cost for oil companies. what is obtainable today? Atiku's intel is charging companies higher than NPA is charging for clearing. has the "free" part of the FTZ not been defeated?

to crown it all, he has monopoly over all the FTZ in the country.
have you imagined paying $800 for a square meter space? that is what Atiku's Intel will charge you the day you will sleep over in any FTZ in Nigeria.

Mr jarus, who is actually benefiting from the so called indigenization as enshrined by your PIB without any implementation frame work?

what provision of the PIB takes care of monopoly in our FTZ to encourage further investments in the oil and gas industry as enshrined by the PIB?

jarus you said and i quote;


" Create efficient and effective
regulatory agencies"

who are the regulatory agencies in the industry?

DPR? and PIB wants to unbundle it? what about scrapping it for starters?
the same DPR that doesnt know how much oil Nigeria is producing?

dept of aboki resources that cant even regulate themselves let alone other companies?

what training as per level and qualification does the PIB recommend for the so called unbundled DPR? i guess none, same ol same ol.
change their name, retain their incompetence.

madueke wadoo!!

Mr jarus the PIB is an official document that will hand over foreign assets to our politicians. there is absolutely nothing there for you.

they will promise you jobs but what you will get in the end is under employment, suffering and agony.

i could remember those days when a foreign catering company west end was still active in offshore locations, their workers were paid very well compare it with the indigenous company that has taken over
SJ Abed, a politician has the temerity to be paying an offshore staff 25k with hard labor.

an offshore catering job is the hardest job i cant wish my enemy, because of the 24hrs nature of their operation, those guys dont sleep.

i feel so sorry for them, 25k for all the risks. that is wickedness thanks
to madueke and her indigenisation policy without implementation frame work.

A blackman is truly a black mind

human beings are enslaved and jarus calls it employment? i dey laugh!!

Jarus:

LOL. Bro, u vex o. Why not contest for PENGASSAN presidency as I can see your activist bend.

I will not go into arguments that will involve naming names, as the names you are mentioning up there are familiar ones. I have my job to protect.

jp philips: @ jarus

it is disheartening that you carefully outlined the rosy prospects of the PIB but fail to include any implementation framework for those anticipated roses to really turn red.
how i wish i was still in the kindergarten where we once believed that goats can fly.

you claim that the bill seek to achieve this

my question is how?

the PIB is clear on areas of increased taxation for producing companies which in your euphoria we expect our brothers to join that league soon.
my question is:

how does increased taxation achieve your quote above?

that phrase above is too vague to be taken seriously, tell us in clear terms how the PIB wish to achieve that quote.

you said and i quote



this is another $¡lly and vague statement

which laws in the PIB will achieve the above??

the last time i checked, Nigerians especially the Niger deltans have been at the receiving end of pains, agony and environmental degradation precipitated by oil exploration, i have not seen any part of the PIB that addressed that or have you seen?

which agency or MDA has the PIB empowered to handle that?

i was not surprised when you carefully skipped the flaring part of the PIB, where it stated that it will encourage Zero flaring with a caveat that madueke will have the authority to issue renewable flaring permits.

how does that solve the green house issues associated with flaring? or another madueke's gimmick for creating "choppings" for her exalted office. lemme ask you, how much do you think madueke will charge through the backdoor for flaring permits?? your guess is as good as mine.

we cannot be bamboozled that the so called PIB is in the interest of Nigerians.

I have it on good authority to state here that 95% of indigenous oil and gas workers have no single insurance welfare.

we are talking about men and women who kiss their loved ones goodbye on a daily basis to face one of the riskiest activity in the history of mankind yet their ignoble employers deem it unfit to insure their lives.

again i ask, where does the PIB address that?

if an insurance policy does not mean well for Nigerians in the oil industry, i wonder what does.
in case you forgot, the Americans rated oil and gas exploration as the 8th riskiest job in the world which over the years has defined a noble welfare package for her citizens in that field.

let me ask you again, where in the PIB does the Nigerian govt. peg a living wage for oil and gas workers in lieu of their occupational hazard?

if all these are not in place, how did jarus come to the sane conclusion that the PIB addressed the interest of Nigerians?

one may argue in ignorance that my concerns above are basically the duty of the union but i stand to be corrected that neither NUPENG nor PENGASSN has a legal shot if they were to go to court in the absence of fundamental laws.

what leverage does an oil and gas employee have if he or she institutes a court action against an employer who has failed in the above regard?

let me reiterate for the umpteenth time that oil and gas operations are not like teaching, banking or other conventional jobs, it a career where faith dangles life and death before anyone who is actively involved. from the terrain,non adiabatic conditions,logistics, climate, flammability of hydrocarbons to mention a few.

for the PIB to conveniently ignore those lucid but unequivocal challenges that average Nigerians face in the oil industry is an insult to people who live through it and a reflection of the incompetence madueke is made of.

you said again and i quote



this part is the most laughable. how i wish you read further to appreciate madueke's ingenuity.
Madueke told Nigerians that her gas solution is a DSO from MNC's.

rightly put, madueke wants to go begging for gas from multinational companies.
no doubt the PIB outlined modalities of expansion for NGC (Nigerian gas company),
my question is this; what has Ngc achieved for over a decade of operation?

the case before the senate instituted by the delta state elders has spoken volume of the modalities of acquisition madueke has in mind for both NGC and NPDC.

who are the so called partners, financiers, jv operators of the much touted marginal fields? lemme guess, politicians? .

Mr jarus, we know the real beneficiaries of the PIB the Nigerian people are far from it.

back to the issue of gas, in the last decade, SHELL our minority jv partner has been investing heavily in gas gathering projects, Chevron (another minority jv partner) has not relented because the last time i checked their EGTL project has gotten to phase 3b.

every sane mind knows that gas is the future from increasing gas prices to local demand viz power plants, madueke's PIB is still solving Nigeria's gas crises with her archaic DSO.

jarus please help me ask madueke to mention any sane country with gas deposit as much as Nigeria that is practicing her DSO model?

is it not commonsensical for madueke to come out with a gas gathering blueprint to harness our abundant gas resources like our jv partners are doing? this gas we are flaring to the tune of $2.3b annually.

the last time she begged for refineries and now gas and jarus is taking madueke serious.

Sincere 9gerian:
A fool wants the ANSWERS but does not want to see the FORMULA. Guy, it is the FORMULA that produces the ANSWERS and without using the FORMULA you'll not arrive at the ANSWERS.

The PIB will provide jobs, jobs and more jobs. The PIB will also increase govt revenue which can be used to provide more good roads, better health services,etc. So guy, look beyond your nose

x-fire:

Jarus won't have answers to all these, I bet you! He carefully evaded my query on increased taxation and threats by IOCs not to invest.
I just wanna say something - even the gas that is being taunted to be the future of Nigerian economy, is at its lowest price in the history of Natural gas industry. There is a glut of natural gas in the US market - supply outweighs demand due to improved technology. Companies like ExxonMobil are the most hit as a result of the glut. US is now thinking of exporting natural gas as LNG - a competitor to NLNG. So I'm really bothered whether the PIB has addressed. Oil is being found everywhere in Africa. America is moving towards self sufficiency in oil production and even wants to be a net exporter i.e. to be our competitor.
Nigeria needs to think ahead and fashion a progressive approach towards addressing emerging oil and gas market reality, not making draconian laws that are not practicable.

PapaBrowne: @Jarus
Wonderful Job. Most of us have been hearing PIB, PIB, PIB without understanding the content and the implication for both the industry and the general economy. Wonderful break down. AAA+++!!!

Questions regarding Host Communities Fund.
1)What happens to 10% of the profit emanating from offshore wells. Which community gets that.
2)How do you determine community ownership? Is it by the location of a well or by the coverage area of the well?

Is there a Negative feeling amongst Nigerians working with multinationals(like yourself and your colleagues) or is it just the Ogas at the top in The Hague and Houston that are apprehensive of the bill? Any fears that the bill could cause layoffs in the industry?

And one last question on the Host Community Fund, you said you also hold that too much goes to the region. Can you narrate why you feel so.
I feel like the host community fund is a much better tool than both 13% derivation and all the nonsense NDDC and Niger Delta Ministry that already exist.
I personally would recommend the scrapping of both agencies maybe to be replaced by an agency that would regulate the host communities fund. Communities come up with projects they would use their fund for in say 2014, monies are released in tranches based on the targets presented by the regulatory body. Again, this is Nigeria, corruption would kill any such process.
I would really like to understand why people are not cool with the Host communities fund.

teexzle: @ jarus any idea on us shale oil, I read it now poses a serious threat for african producers

jp philips:

to a great extent, shale oil has significantly reduced United states's dependence on foreign crude.

Nigeria for example saw a 15% cut on US demand for her oil, thanks to India who took up that slot.
as i write, US is producing about 6m bbls of shale oil and they are targeting 15m bbls by 2016 to become the world's largest producer of crude.
if that happens, there will be excess in the market, that will drive down the price, definitely from antecedents, OPEC will respond by cutting down production, that will drastically reduce Nigeria's oil revenue.

Yes shale oil is a huge threat to Nigeria.

however, Nigeria may breathe a sigh of relief if the congress pushes for tougher environmental laws, shale oil extraction is environmentally unfriendly.