President Muhammadu Buhari has recommended the total overhaul of the NNPC and PPPRA in the new PIB submitted to the National Assembly.
Naija News learnt that the new Petroleum Industry Bill 2020was transmitted to the National Assembly. the long-awaited oil reform bill would privatise the Nigerian National Petroleum Company (NNPC), amend changes to deepwater royalties made late last year.
The legislation has been in the works for the past 20 years and looks to revise laws governing Nigeria’s oil and gas exploration not fully updated since the 1960s because of the contentious nature of any change to oil taxes, terms and revenue-sharing.
The bill proposes creating a limited liability corporation into which the ministers of finance and petroleum would transfer NNPC assets.
The government would then pay cash for shares of the company and it would operate as a commercial entity without access to state funds.
The changes would in theory make it easier for the struggling company to raise funds.
The legislation would also amend controversial changes to deep offshore royalties made late last year by cutting the royalty that companies pay the government for offshore fields producing less than 15,000 barrels per day to 7.5% from 10%.
It would change a price-based royalty too, so that it kicked in when oil prices climbed above $50 per barrel, rather than $35.